Acquisition and predevelopment loan funds cleanup and conversion of former Rhode Island factory
We provided a $600,000 acquisition and predevelopment loan to long-time customer NW Blackstone River Valley (NWBRV). They will convert one of Tupperware’s first research labs, now an old factory, to 55 affordable apartments in North Smithfield, RI at 50-60% AMI ($40,000-$48,000 for a family of four).
The project was tied up in bankruptcy court for several years and had environmental remediation issues to address.
“NC moves the process forward, and helps brainstorm solutions when deals hit inevitable snags,” said Joe Garlick, Executive Director of NWBRV. “I don't know many lenders who would stick with you as you plugged away at the closing checklist under circumstances like these.”
NWBRV will purchase an existing historic industrial building on more than 33 acres of land in the town of North Smithfield, RI, an area with widely varying housing prices. They will redevelop the structure into affordable apartments and live/work space, in conjunction with North Smithfield’s plan for creating more mixed-use development. The project has strong support from the town.
The predevelopment financing will help mitigate the environmental conditions that traditionally accompany long-time industrial sites in historic New England towns like North Smithfield.
The primary repayment source will be construction financing using both low-income (LIHTC) and historic (HTC) tax credits.
NC has made two prior loans with NWBRV, a strong NeighborWorks America network member.
NWBRV is one of the leading economic development organizations in Northern Rhode Island, with extensive experience in redeveloping industrial/mill buildings to high-impact residential/commercial mixed-use properties. They have led the revitalization in and around Woonsocket, Burrillville, and North Smithfield.
NWBRV currently operates seven multifamily properties in the region, 336 family and senior apartments. They have seven new construction/adaptive reuse projects and one preservation deal in development.