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Nearing completion of a $66 million transformation of two former state office buildings near Hartford’s Bushnell Park into 164 apartments, Spinnaker Real Estate Partners hopes to build 237 additional units in two new properties on the same block.
Spinnaker is proposing a roughly $60 million development, adding two new buildings onto the grounds of the former state office building and annex at 55 Elm St.
This is one of several proposals scheduled to be introduced to the Capital Region Development Authority’s Housing Committee during a meeting on Friday. Collectively, they would add hundreds of apartments to the rapidly growing multifamily stock in Hartford and East Hartford.
“Demand is high, and these buildings are filling quick,” CRDA Executive Director Michael Freimuth said of new apartments that have been backed by his agency. “The rents have actually gone up a little bit.”
Those rising rents, however, are not keeping pace with higher construction and operating costs, leading to ever-rising requests for CRDA assistance, Freimuth said. The quasi-public economic development agency for the capital region provides low-interest development loans, which come along with automatic tax relief for projects in Hartford.
Spinnaker is already renting apartments in a smaller “annex” building at 55 Elm St. It is expected to begin renting apartments in the larger building this fall. CRDA issued a $7 million permanent loan to Spinnaker for this project, along with a $6.5 million bridge loan intended to carry expenses until Connecticut state historic tax credits granted to the project could be sold.
Now, Spinnaker is proposing a 127-unit building with 3,250 square feet of first-floor retail space at 65 Elm St., along with a neighboring 112-unit building with 5,250 square feet of first-floor retail space at 100 Capitol Ave.
The developer is seeking $16 million in CRDA loans to back construction of both new buildings, Freimuth said.
Spinnaker’s plan is expected to complement broader efforts to transform about 20 acres of empty blocks and parking just south of Bushnell Park into a thriving neighborhood.
Spinnaker expects to monetize the tax credits awarded to 55 Elm St. by the end of the year and repay CRDA, Freimuth said. Tentative plans call for that money to be rolled into the new financing for 100 Capitol Ave.
The two $8 million loans for each new Spinnaker building would carry a 10-year term at 3% interest, with interest-only payments for the first three years.
The proposed new buildings would host a mix of “spacious” studio apartments, along with one- and two-bedroom units, according to information shared with CRDA board members.
East Hartford proposal
The Simon Konover Co. is seeking a loan of up to $6 million to support its plan for 132 apartments on a 35-acre property at 341 East River Drive, near the Connecticut River in East Hartford.
Based in West Hartford, Konover has held the East River Drive site for about four decades, intending originally to build an office property there before that market cooled. Now, Konover’s plan could be part of a broader apartment development boom along the river.
A group of prominent regional business leaders and developers is advancing a long-term redevelopment of the Founders Plaza office park in East Hartford into a mix of roughly 1,000 apartments, and retail and commercial space. Working under the Port Eastside moniker, the partnership is also moving to purchase a 19-story office tower at 111 Founders Plaza, in order to convert at least some of the building into apartments.
Konover is close to securing an eight-year tax break from East Hartford, according to information shared with CRDA board members. Preliminary plans show five, three-story buildings surrounded by parking. For now, plans call for 17 studio apartments, 33 one-bedroom units, 66 two-bedroom units and 16 three-bedroom units.
Planned amenities include a clubhouse, fitness center, remote work stations, community room, café, pool, outdoor lounge and grilling areas.
More Hartford developments
The CRDA board subcommittee will also review several potential Hartford developments that are still in the early stages of the vetting process, including:
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