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January 2, 2025

Investment team pays $4M for Rocky Hill office property; eyes apartments conversion

COSTAR 1344-1360 Silas Deane Highway, Rocky Hill
By Michael Puffer

A team of investors led by Hartford-based real estate development and investment company Staypoint Properties has paid $4 million for a Rocky Hill office building, with plans to transform the property into as many as 75 apartments.

In a deed recorded Dec. 27, a limited liability company led by Hamden real estate investor Joseph Moruzzi sold 1344-1360 Silas Deane Highway to a group of investors headed by Staypoint.

The 2.58-acre property is nestled into a corner of Interstate 91 and Route 99 amid a heavily developed Rocky Hill commercial strip that combines restaurants, retail and office buildings.

The property hosts a five-story, 83,392-square-foot office building completed in 1984, and a 3,060-square-foot fast-food building housing a Wendy’s restaurant, as well as a cellular communications tower.

Moruzzi paid $6.89 million for the property in 2014. 

In early 2023, town officials signed off on his plan to convert portions of the office building into 59 apartments, six of which were to be set aside at affordable rates. The plan would have left 17,330 square feet of space as office.

Staypoint Founder Joseph Sullo said he plans to ask the town to amend the approval to convert most of the building to multifamily use, resulting in 70 to 75 apartments. The developers are considering converting the first floor into space for a fitness center, which would sell memberships to the public.

Sullo is the principal of a limited liability company that bought a 55% stake in 1344-1360 Silas Deane Highway. The remaining interest was split between three other LLCs whose principals include Gianni Zarrilli (10%), Salvatore Indomenico (25%) and Rino Mozzicato (10%).

Jay Morris and Robert Gaucher of O,R&L Commercial listed the property and secured the buyer.

Morris noted demand for apartments remains steep while interest in office is lax. Buyer interest was strong, although most prospective buyers wanted to see the conversion completed first, Morris said. 

"Staypoint has its own construction team, so it's right up their alley," Morris said. "It's a very good fit for their operation." 

The development’s timing depends on the speed of local approvals, Sullo said. He hopes to launch the project in March and complete it 12 to 15 months later. He estimates costs at $12 million and is working to close on financing. 

He said he’s confident in area demand.

“There is a tremendous demand for apartments right now,” Sullo said. “We feel we can stabilize the property relatively soon.” 

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