Lowell’s Picker Building, located on the south side of Bridge Street and the west side of the Merrimack River, will be converted into a low- and moderate-income apartment complex

The project, known as Mass Mills III, will be the third phase of redevelopment of the former Massachusetts Mills complex in downtown Lowell. Mass Mills I and II were previously developed by the Mullins Company and feature 281 units of mixed-income housing.

Mass Mills III is being developed by R-M Developer LLC, a partnership between the Mullins Company, represented by Joseph Mullins, and Rees-Larkin Development, represented by Jon Rudzinski.

MassHousing is providing $3.5 million in permanent financing. Other funding sources for the $27.8 million project are federal Low-Income Housing Tax Credits, federal and state Historic Tax Credits, the state Department of Housing and Community Development and the city of Lowell.

The contractor will be Dellbrook Construction and the architect is Russell Scott Steedle and Capone Architects Inc. The management agent will be Corcoran Management Co.

“This is one of the last mill buildings to be redeveloped in downtown Lowell and has been a priority for the city for a long time,’’ Rudzinski said in a statement. “Previous attempts to redevelop this building were unsuccessful but we are pleased to be moving forward on this project which will create more affordable housing as part of the ongoing revitalization of the city.’’