Rumford Center Secures $15.5 Million to Add More Apartments and Finish Project

The five-year effort to rehabilitate and reuse the Rumford Chemical Works mill complex on Newman Avenue got a huge boost Tuesday when Webster Bank announced $15.5 million of financing that should help the developers finish the project.

The mill complex is home to eight buildings with a mixture of 89 residential apartments and retail and office spaces. The most recognizable tenants are and the new .

Despite a still dormant housing industry, the rental market has been very good at Rumford Center. Nearly all of the 89 apartments are occupied, which is one reason the developers are using a chunk of the $15.5 million for new construction on vacant office spaces. The offices spaces have not had as much interest as the residential spaces, so the owners are converting a large area of would-be office space into 23 more apartments. When they’re done, they will have 112 apartments as part of a 200,000-square-foot complex.

Visitors to the former home of the Rumford Chemical Works, which closed in 1968 and once manufactured the world-famous Rumford Baking Powder, today see newly landscaped grounds, ample parking (nearly 500 spaces) and inviting buildings with loads of character. The banker who put the deal together believes the property has special appeal.

“I’ve always liked this property,” said Claudia Piper, senior vice president, commercial real estate, for Webster Bank. “I’ve always felt it had great appeal, with a lot of amenities. It really appeals to people who like mill rehab projects … You really have a great urban feel to that location.”

Colin Kane, one of the principals of the PK Rumford limited liability company that owns Rumford Center, is thrilled to be moving into the final stages of a long five-year, $35 million project. When they bought the mill complex in 2006, the economy was strong and prospects were high. Then the economy took a nosedive in late 2008 and early 2009 struck, and prospects changed. “If we did this again, we wouldn’t wish to break ground in January of 2009,” Kane said.

Yet they persevered, secured their financing, rented apartments and emerged this week in good enough shape to get the last of their needed financing. Both Kane and his lender, Piper, said that if this project came before them today, it would not get done. “The construction finance industry is just about gone,” Kane said. “It’s very, very difficult to find financing for a project like this today.”

Said Piper, “It’s definitely a different market today.” She added that even with a great asset base and experienced developers, Rumford Center probably would not get off the ground today.

PK Rumford, LLC is a joint venture between Peregrine Holdings and Kirkbrae Development.