Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

September 4, 2024

$16M invested so far toward massive, mixed-use redevelopment of East Hartford office park

Contributed Lexington Partners' rendering for the first building of the new Port Eastside mixed-use redevelopment of East Hartford's Founders Plaza. The roughly 50-year-old office park is located along the bank of the Connecticut River.
By Michael Puffer

The team behind a proposed massive, mixed-use redevelopment of portions of East Hartford’s Founders Plaza has spent about $16 million so far as it closes in on final property acquisitions needed for the project.

Christopher Reilly — president of Hartford-based real estate developer Lexington Partners – told members of East Hartford’s Town Council Tuesday that his team has a “total investment of about $16 million” in the project so far.

The council, on Tuesday, unanimously signed off on agreements that will allow the town to spend up to $6.5 million in state funding to demolish a 189,890-square-foot office building at 99 Founders Plaza and a 180,000-square-foot parking garage at 111 Founders Plaza.

Port Eastside representatives have declined recent interview requests from The Hartford Business Journal, but did release a statement on Tuesday’s vote.

“We are very pleased that the Town of East Hartford will move forward with its agreement with the Capital Region Development Authority to clear the way for what we hope will be the first physical site work for the Port Eastside riverfront revitalization project—the demolition of the vacant building at 99 Founders Plaza and cleanup of the site,” reads a portion of the statement.  “The apartment homes we hope to see permitted here will be a major step in our multi-year process to energize the east side of the river and complement the Greater Hartford region with supporting growth and connectivity.”

East Hartford Director of Development Eileen Buckheit said she anticipates demolition will go ahead in the first quarter of 2025. This will provide a portion of the roughly 30-acre development site envisioned in the Port Eastside plan.

The project, when complete, will blend hundreds of apartments with retail, office and recreation space along the Connecticut River. The plan calls for the town to surrender a portion of East River Drive to ensure river access.

The development partnership includes Hartford-based Lexington Partners and its frequent collaborator Hartford-based investor and businessman Alan Lazowski with Hoffman Auto Group Co-Chairman Jeffrey S. Hoffman; Manafort Brothers Inc. President Jim Manafort; Nicholas Michnevitz, president of West Hartford-based MBH Architecture; Peter S. Roisman, head of Houston-based multifamily investor REV; as well as Harris and Bruce Simons, brothers who are principals of West Hartford-based development and real estate services firm Figure 8 Properties.

Port Eastside has purchased two properties so far. Last summer it paid $4 million for the office building on 7.34 acres at 99 Founders Plaza. This summer, a limited liability company tied to Port Eastside paid $7 million more for a vacant 70,350-square-foot “flex” office building on 6.5 acres at 300 East River Drive.

Reilly said Connecticut Children’s Medical Center has signed onto a “long-term” lease of the building at 300 East River Drive for use as a distribution hub.  The excess land on that property will be used as a part of the larger development site, he said.

M&T Bank sold Port Eastside a $17.49 million mortgage owed on the 19-story office tower and parking garage at 111 Founders Plaza. Port Eastside is expected to foreclose on the property in a hearing before a Hartford Superior Court judge on Monday. Attorneys for Port Eastside and the current owner, Merchant 99-111 Founders LLC, have submitted a stipulated agreement requesting the court sign off on the foreclosure.

Port Eastside is looking to convert the office tower at 111 Founders Plaza into housing. The parking garage is lined up for demolition.

Reilly, on Tuesday, said Port Eastside expects to also purchase a 5.7-acre landscaped parking lot at 321 Pitkin St. in October. The site is adjacent to the office tower and parking garage at 111 Founders Plaza. The cost of that deal is not part of the $16 million tally Reilly shared with the council on Tuesday.

The Capital Region Development Authority will manage the demolition project facilitated by Tuesday’s vote of the council.

In return for access to the state’s $6.5 million, Port Eastside is promising to secure permits for construction of at least 150 apartments within four years of the first disbursement of grant money.

Earlier this year, Reilly told the council that, while his team could only commit to 150 units in the first phase of development due to an uncertain financing climate, it is aiming for closer to 300 units in that first building.

Reilly told council members Tuesday that he will incorporate some homeownership opportunities in the plan following a request by a council member. He also reassured council members that preserving and enhancing public access to the riverfront is an important component of the plan.

“We have the same goals in mind, and we really appreciate your investments in all the properties and your continued willingness to cooperate with us to continue down the road with the shared vision we have,” Town Council Chair Richard Kehoe told Reilly. 
 

Sign up for Enews

Most Recent

Most Recent

0 Comments

Order a PDF