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April 17, 2023 Deal Watch

Hartford developer takes on transformation of antique Litchfield courthouse into boutique hotel

HBJ PHOTO | STEVE LASCHEVER Patrick Kenny, vice president of development at Hartford-based Lexington Partners, in a historic courthouse in Litchfield his firm is converting into a boutique hotel.
By Michael Puffer

Over the past 133 years, people have visited the granite-block courthouse just south of Litchfield’s Town Green for everything from murder cases to child-custody disputes.

In less than two years, however, the roughly 18,000-square-foot historic building could become a mecca for leaf peepers, wedding guests and tourists seeking an escape to the tranquil Litchfield hills.

A planned $14-million redevelopment spearheaded by Hartford-based Lexington Partners will transform the building into a 20-room boutique hotel.

Under the plan, the main second-floor courtroom will be converted into an upscale restaurant, accentuated by a rooftop lounge overlooking a portion of the town center and wooded hills beyond.

With all needed approvals in hand, Lexington anticipates finalizing the purchase this month and beginning a 15-month renovation in May.

The firm specializes in developing and managing large-scale multifamily properties, but opted for a hospitality development after hearing from locals, including the Litchfield Preservation Trust Inc.

The nonprofit acquired the property after the court relocated to Torrington in 2017.

“We listened to the townsfolk and did our own due diligence,” said Martin Kenny, owner of Lexington Partners. “If we did apartments or condos, it wouldn’t generate the traffic to help support the rest of that beautiful center. To me, it’s one of the most iconic architectural buildings in the state, particularly in the area.”

Proud history

The Romanesque Revival-style courthouse — adorned with a Seth Thomas clock tower — dates back to 1889, and was designed by noted Waterbury architect Robert Wakeman Hill, according to state historical records.

The exterior was remodeled in 1913 and 1914 to more closely reflect the town’s colonial style.

Kenny said he initially saw the courthouse conversion as a relatively modest effort, something that his younger staff, including his sons Kevin and Patrick, could lead from design through construction.

However, challenges have crept up.

Patrick Kenny, Lexington’s vice president of development, said federal historic preservation guidelines and state and local desires haven’t always perfectly meshed.

For example, there were disagreements over the design of a planned tower addition that’s needed to make room for stairs, a dumbwaiter and elevator that will carry people and food from the basement to the rooftop lounge.

HBJ PHOTO | STEVE LASCHEVER
Patrick Kenny, vice president of development at Hartford-based Lexington Partners, stands in front of a historic courthouse in Litchfield his firm is converting into a boutique hotel.

Lexington and Hartford-based Tecton Architects proposed cedar-board siding to complement the town’s colonial-style buildings; town officials and the National Park Service preferred brick.

The brick design won out.

“That’s an example of getting every board and committee on the same page, and why it was so time-consuming,” Patrick Kenny said.

The courthouse interior currently has cracks in plaster, loose and threadbare carpeting and at least one broken window covered with plywood. Patrick Kenny said the planned renovation will transform the deteriorating building while maintaining its historic character.

Eight fireplaces will remain. A judge’s bench from a first-floor courtroom will be repurposed and used in the reception area, as will a scrolled wooden rail from the jury box.

Other courtroom furnishings will be incorporated into the restaurant. A massive safe will be redesigned as a bathroom for one suite.

“We are used to doing projects of $50 million and up,” Martin Kenny said. “This deal has been just as complicated as some of the larger projects we have done. But it’s a labor of love. I’ve told people that this little project is probably going to be one of the most significant things we have done in our body of work.”

Development costs pencil out to about $700,000 per hotel room. The restaurant will be an important source of additional revenue.

The project is relying on $3 million worth of state and federal historic tax credits, in addition to $2 million in Connecticut Green Bank C-PACE financing for energy efficient building technology. Massachusetts-based PeoplesBank is loaning $7.5 million.

Parking magnate Alan Lazowski, a longtime business partner to Martin Kenny, is among a group of friends and family also investing in the hotel.

Patrick Kenny said Lexington is working to fill a small gap in the private equity portion of financing.

Eagerly anticipated, much needed

The new hotel will complement fashion boutiques, antique stores, restaurants and other Litchfield center shops far better than what came before, said Andrew Goldstein, who runs a jewelry shop a few doors down from the shuttered courthouse.

Goldstein moved his Ideal Jewelers business from downtown Waterbury to Litchfield shortly before the court closed in 2017.

The consensus among retailers was that the court didn’t generate much business for merchants along the stone-brick sidewalks of the commercial core, Goldstein said. Most staff seemed to bring their lunches and head right home after work.

The planned hotel, however, will provide much-needed lodging for an area that springs to life with tourists Thursdays through Sundays, Goldstein said.

“It’s a great addition,” he said. “I know everybody on the street is very excited about it. It is going to bring in people. You can’t imagine how much business we do from people who want to escape the city on the weekend.”

JoAnn M. Ryan, president and CEO of the Northwest Connecticut Chamber of Commerce, said the area will greatly benefit from another hotel, especially one that is more moderately priced than some existing options.

“I’m a resident of Litchfield and live not too far from the Green, and the weekends are filled with New York cars,” Ryan said. “You have to make reservations at the restaurants to get a meal.”

Ryan said it can be hard to find an available hotel room, and existing options can run above the average visitor’s budget.

For example, the 113-acre Winvian Farm resort and spa in nearby Morris rents luxury cottages starting at $799 per weeknight during the off season; daily rates jump to $1,599 for weekend nights during the September and October peak foliage season, according to its website.

The 35-room Mayflower Inn in Washington costs $520 to $708 for a weekday night stay in mid-May, in addition to a $40-per-night resort charge, according to its website.

The 32-room Litchfield Inn on Bantam Road has more affordable rates — $236 to $289 per weeknight in May — but fills up quickly.

“There are bed and breakfasts, but you really have to search,” Ryan said. “If you have a larger party, it’s really kind of hard to find a place. There is no question there should be more places that could accommodate a number of people.”

Patrick Kenny said he anticipates rooms will rent somewhere between $200 to $300 during off-season months, and $400 to $450 during peak season.

Unique offering

Provincetown, Massachusetts-based Salt Hotels will have a 10% stake in the courthouse redevelopment and manage the day-to-day functions of the restaurant and hotel – neither of which yet have a name.

Salt currently operates boutique hotels in Provincetown, Nantucket, Miami Beach, Minneapolis, Los Angeles and Mexico.

David Bowd, who co-founded and owns Salt Hotels with Kevin O’Shea, anticipates opening in late 2024 or early 2025.

O’Shea said Salt is still working on concepts for the restaurant, which will be accessible to the public. Special attention will be paid to complement, rather than compete with, existing eateries, he said.

The courthouse represents the unique and niche offering Salt Hotels prizes for its boutique destinations, O’Shea said.

“Obviously, this building is really iconic and just an incredible piece of architecture,” O’Shea said. “As a courthouse, this building was open to the public but not necessarily a place you would want to be in. I think this is such a wonderful opportunity as a hotel to be able to invite people in and have them experience this incredible piece of architecture in the center of Litchfield.”

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