Mercantile Center is the premier mixed-use property in downtown Worcester, currently owned and operated by Franklin Realty Advisors of Wellesley, Massachusetts. Consisting of two office towers with 646,000 sf of office and retail space and a 1,647-space structured parking garage, it is the centerpiece of the $565 million, multi-phased revitalization project in the heart of Worcester. Franklin chose Kelleher & Sadowsky for both leasing and mortgage brokerage services.
In its first two years, our team brokered leases totaling more than 200,000 sf of Class A office space. Notable tenants included UMass Memorial Healthcare, Nationwide Insurance, Webster Five Cents Savings Bank, Reliant Medical Group and Bank of America, in addition to our firm itself.
When Franklin wanted to pay off an initial loan with Wells Fargo and buy out an early investor/equity partner, managing partner Chip Norton tapped our Capital Market Group to lead refinancing efforts. One of our brokers raised $15 million in new equity from his network of local community leaders. A second secured $70 million in new debt from local lending institutions, including Country Bank of Ware (which led with $59.3 million), Fidelity Bank of Leominster, Cornerstone Bank of Worcester and Webster Five Cents Savings Bank. Locally sourced financing on this scale was previously unheard of in Worcester.
By choosing Kelleher & Sadowsky for its brokerage services, Franklin Realty Advisors was able to generate interest and excitement about Mercantile Center in the local business community. As a result, many of Worcester’s finest companies have stepped forward to fill prime space in the two office towers, and local investors and lenders have gotten on board as well.