Kelleher & Sadowsky Arrange $14.35M in Financing for CMK Development for Worcester Transformation

WORCESTER — Kelleher & Sadowsky Associates Capital Markets team of Meghan Liddy and Chris Naff has arranged $14.35 million in total financing on behalf of CMK Development Partners, LLC for the acquisition and redevelopment of 57 Exchange Street—also known as One Exchange Place—in downtown Worcester.

The project will transform a historic three-building complex — including the former Worcester Police Headquarters, the Worcester District Court building (circa 1918), and the Commercial Street Fire Station (circa 1900) — into a mixed-use development featuring 44 apartments and ground-floor retail space. The two primary structures are connected by a central courtyard, which will be reimagined as part of the revitalization effort.

The property will include nine affordable housing units, with four studio apartments reserved for residents earning up to 60% of area median income (AMI), and four additional units (three studios and one two-bedroom) reserved for residents earning up to 80% of AMI. Planned amenities include a fitness center, business center, and outdoor courtyard designed from the site’s historic courtroom space. Construction will begin immediately and is expected to be completed within 18 months.

“This transaction showcases the strength of the K&S Capital Markets team in executing complex, multi-faceted financing structures,” said Chris Naff, Vice President at Kelleher & Sadowsky. “We leveraged our local relationships with city leaders and lenders to position our client for success—while aligning long-term capital with the project’s redevelopment goals.”

Founded by Gerry and Colleen Kavanaugh, New Bedford–based CMK Development Partners is an active real estate development, investment, and advisory firm with a diverse portfolio of mixed-use and adaptive-reuse projects throughout Massachusetts. CMK’s other developments include multiple restorations in Weymouth and New Bedford, as well as the newly launched Union Place in Natick, a three-story, 40,000-square-foot age-restricted rental community being developed in partnership with Behrend Construction.

For the One Exchange Place project, Kelleher & Sadowsky arranged a $9.85 million construction loan and a $4.5 million bridge loan with Westfield Bank to support historic and HDIP tax credit financing, along with a $3.5 million acquisition component. The firm also secured permanent take-out financing from PGIM through a non-LIHTC Forward product from Freddie Mac, showcasing its ability to structure complex, multi-layered financing solutions that combine local, regional, and institutional capital sources