Construction Financing and Land Transfer Unlock the Transformation of 31 Elm Street in Springfield by WinnDevelopment and Opal Real Estate

The City of Springfield, MassHousing, MassMutual, MGM Springfield, WinnDevelopment and Opal Real Estate Group jointly announced the closing of construction financing and the conveyance of 31 Elm Street in downtown Springfield. Together, these project milestones will allow WinnDevelopment and Opal Real Estate to transform the historic former Court Square Hotel at 31 Elm Street into 74 new mixed-income rental homes.

The preservation of 31 Elm Street is a key component of downtown Springfield’s ongoing revitalization. Originally constructed in 1892, the Court Square building sits between Springfield City Hall and the MGM Springfield resort. Prior to its redevelopment, the property had sat vacant for decades and was deteriorating rapidly. The property is now being fully preserved and redeveloped through a unique public-private partnership of state, local and private-sector stakeholders.

"My administration has never given up on this vital and historic economic development project that will act as an anchor for our downtown district for years to come creating both housing and a good four letter word – JOBS! I want to thank the Baker-Polito Administration, Congressman Richard Neal, MassHousing, MassMutual, MGM Springfield, Winn Opal, the Springfield Redevelopment Authority and its Board members, and all of our public and private partners for getting this project across the goal line. With the construction financing secured we’ve reached yet another milestone on this transformational project to restore the historic grandeur of this once stately building. This has been a huge undertaking, one that had to overcome the unanticipated challenges from the pandemic and supply shortages every industry has been experiencing, but thanks to this unique public and private partnership we have made the impossible possible," said Springfield Mayor Domenic Sarno.

"MassHousing is proud to support this historic investment in Springfield’s ongoing revitalization," said Chrystal Kornegay, Executive Director of MassHousing. "The new mixed-income housing at 31 Elm Street will add to the vitality of downtown Springfield. We congratulate our public- and private-sector partners for their commitment to this transformational project, and for their tenacity in seeing it through."

"MGM Springfield is incredibly proud to help bring this iconic and transformative development project to downtown Springfield," said Chris Kelly, President and Chief Operating Officer of MGM Springfield. "The historic 31 Elm Street building is a wonderful symbol of our city’s past, present and future, and it’s an honor to be part of its story. This project is a symbol of what great partnerships can achieve."

"MassHousing has been our critical financial partner in a very complex transaction, providing significant public funding as well as an innovative channel for the private sector resources needed to help us make this long-awaited development a reality," said WinnCompanies Executive Vice President Michael O'Brien. "Together with Opal Real Estate Development, we are excited to have finally reached this milestone. We are grateful to MassHousing for supporting a project that will deliver housing, economic activity and jobs to downtown Springfield."

"MassHousing’s support for this development is not only an endorsement of the need for apartment homes in downtown Springfield but also of the many efforts over the years to strengthen the Court Square area as the centerpiece of the city," said Peter A. Picknelly of Opal Real Estate Group. "It’s rewarding to see this once-vibrant historic building being brought back to life thanks to our partner, WinnDevelopment, the undisputed leader in first-class, residential adaptive reuse projects."

The Commonwealth of Massachusetts, the City of Springfield, MassMutual and MGM Springfield are jointly contributing $48.5 million in construction and permanent financing to the project. MassHousing is acting as funding administrator, on behalf of the public and private project partners.

Concurrently with the financing transaction, the City of Springfield and the Springfield Redevelopment Authority have transferred ownership of the 31 Elm Street site to WinnDevelopment and Opal. The City of Springfield and the Springfield Redevelopment Authority completed approximately $4 million in environmental remediation work at 31 Elm Street prior to the conveyance of the project site.

Other funding sources include $10.8 million in federal and state historic tax credit equity and a deferred developer fee. Bank of America is providing a total of $12.2 million in construction, bridge and permanent financing.

When complete, the redevelopment of 31 Elm Street will fully restore the historic property, preserving historic details while adding modern building systems, and creating 74 new mixed-income apartments, 12,000 square feet of commercially active ground floor space, a 200-seat restaurant, a gym and community space. The 74 residential units will be comprised of 59 market-rate units and 15 workforce housing units, which will be affordable to households making up to 80% of the Area Median Income (AMI). The Area Median Income for a family of 3 in Springfield is $84,750.

There will be 49 new 1-bedroom units and 25 2-bedroom units at the property. The general contractor is Fontaine Brothers, the architect is The Architectural Team, and the management agent will be WinnResidential. Construction is expected to be completed in the Fall of 2023.

MassHousing has financed 12 rental housing communities in Springfield totaling 2,564 units of housing with an overall original loan amount of $157.4 million. The Agency has also provided home mortgage loans to 4,965 homebuyers and homeowners in Springfield with an original purchase principal balance of $384.4 million. 

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