Gregory J. Rice is the general manager and vice president of franchise sales for Nexus Property Management, based in Pawtucket, which is moving forward with a plan to convert the former Sacred Heart Church at 415 Olo St. in Woonsocket into 32 apartments.
Recently, Rice announced that Nexus secured financing for the redevelopment project from Centreville Bank. Spanning 10,000 square feet, including a rectory, the church building was originally constructed in 1920 and saw its final Mass four years ago. It was sold for $510,000 earlier this year by the Roman Catholic Diocese of Providence to Belchikoo LLC, which is affiliated with Nexus Property Management.
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Learn MorePBN: Recently, we heard news that you gained financing from Centreville Bank for the Sacred Heart Church apartment conversion project in Woonsocket. What’s your reaction to this?
RICE: I approached all the big banks in Rhode Island and they shot it down quickly. Centreville was the only one that saw the vision. The numbers are phenomenal, the city and state support it, and it’s adding to the much-needed housing stock.
I feel that I received a great deal of negativity in regards to the area the project is in, the rents I seek to obtain and my overall experience in this arena. Technically, I do not have any “church development experience,” but how many people actually do? I have experience taking a small business from scratch and turning it into a nationwide franchise, managing thousands of nonowner-occupied homes, all while owning 100-plus units personally.
PBN: I heard you say that you had an appraisal done that determined the value of the property after the renovation, putting it at over $6 million. Why was the appraisal needed and how did it work out?
RICE: The appraisal determines what loan amount a lender could offer. In this case, the project is estimated to have an after-renovated value per unit of around $200,000. That was a tremendous calculation that I thought would make securing financing a no-brainer. This is typically the most difficult stage for the developer, and for me it was the easiest.
Still, when presenting this deal to the banks across the state, they would say things like “You can’t get these rents” and “Woonsocket doesn’t support these numbers.” The banks would still say these things while they were looking through a bona fide appraisal, commissioned through my original lender. Centreville ended up honoring this appraisal and not making me order a new one.
PBN: With financing secured, what’s next for this project in terms of the timeline going forward and how you feel about it?
RICE: Our friends at the firms Bentley Builders and ZDS Architecture have created a design that they estimate can be completed start to finish within nine months. We are confident that they can hit this target.
The first step will be the demolition of the connector walkway, the altar and a variety of walls/flooring throughout the rectory. We are making the rectory and church into two separate buildings. This will help us in a variety of ways throughout construction, and also make life easier once the property is occupied.
PBN: What was it like working with the local Catholic diocese to acquire this property, given their special concerns about the future use of the property?
RICE: This process was extremely transparent and efficient. Marge Jacob, of RE/MAX Town and Country, represented the diocese in the sale and provided me with all the information and access to the property I needed. Father Dan, who ran Sacred Heart Church, was extremely supportive of the project as well. He even came to the Zoning Board of Review hearing to demonstrate his belief in our vision. I will ensure that the property and residents are always in compliance with the proper uses of the property. Though it’s no longer a church, it’s important to me that the image and historical integrity remain respected and preserved.
PBN: What’s the demand for housing like now in Woonsocket and what kind of monthly rental rates do you think these apartments will be demanding?
RICE: Woonsocket is truly a “city on the move,” as Mayor Lisa Baldelli-Hunt says. I am confident that these units will offer an alternative option in the city and attract a higher-level professional that may be used to living in Providence, for example.
The church units should be around $2,000 per month. The rectory units should be between $1,500 to $1,750. The property will offer off-street parking, in-building laundry, green space, communal areas and a historical vibe with modern accents. A truly one-of-a-kind property.
Marc Larocque is a PBN contributing writer.