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September 15, 2022

Local investors pay $4.8M for long-struggling Colonial Plaza in Waterbury

Michael Puffer | Hartford Business Journal Colonial Plaza, Waterbury.
By Michael Puffer

A prominent Waterbury-based family business recently paid $4.8 million for the long-struggling Colonial Plaza on Thomaston Avenue in the city, with promises to rehabilitate it into a thriving retail and commercial center.

“We are incredibly motivated to invest in the city,” said Jake Albert, vice president of Cornerstone Realty. “We are always looking to grow our portfolio and support the community with different investments.”

Cornerstone Realty is the principal of 155 Connecticut LLC, the entity that purchased a controlling interest in Colonial Plaza from Stop & Shop Supermarket Co. LLC on Thursday, Sept. 8. The city recorded the sale on Sept. 12.

Cornerstone’s purchase included 224,810 square feet of commercial buildings on 16 acres. A prior owner had separated the sprawling plaza into condos, and the sale does not include the 10,633-square-foot portion housing the San Marino Ristorante.

Albert said his family was motivated to buy the property given its “great location,” recent investments in economic development by the city and confidence in the business-friendly track record of city Mayor Neil O’Leary.

The plaza is located at 155 Thomaston Ave., along a busy main arterial road. Located just west of downtown Waterbury, the plaza is also close to ramps for Interstate 84 and Route 8.

Albert’s great great grandfather immigrated to Waterbury from Lithuania in 1895 and started a metal recycling business — Albert Bros. — which is today one of the most prominent businesses in the city.

The Albert family launched Cornerstone Realty 32 years ago, which today owns about 2.2 million square feet of commercial properties in Connecticut and Pennsylvania. A little more than half of that is in Waterbury, largely in the Captain Neville Industrial Park.

Most of Colonial Plaza was built in the 1960s, although restaurant sites that host Taco Bell and a Wendy’s restaurant were added in 1995 and 2006.
Jake Albert, 29, never saw the plaza in its heyday. He has heard stories from his father, Jonathan, and uncle, Eric, about the plaza as a hotspot.

“At one time this was a thriving center for everything Waterbury,” Albert said. “We believe there’s a huge amount of value to add. Our connection to the community makes us highly motivated to execute and turn it around.”

Waterbury Economic Development Director Joseph McGrath recalled the plaza as a vibrant draw for people of all ages in the 1960s and 1970s. There was a big Grand Way department store. The Holiday Seasons restaurant featured live music. The Waterbury Beef butcher shop provided retail and wholesale meats. In the summer, one could ride go-karts in the parking lot. The plaza was a big draw on Friday nights for teens leaving downtown high schools.

“It was busy all the time,” McGrath said. “There was always activities. There was always something going on. It was a place where people would go, especially on a Friday night. If you were younger, you would just cruise the parking lot.”

Today, the property holds a Wendy’s, Taco Bell, Cherry Valley Marketplace supermarket, Dunkin’ Donuts, Ami’s Bagels, an off-track betting shop, dental office, Liberty Tax location, liquor store, T-Mobile phone store, check cashing stop, laundromat and a uniforms company. But it is still only about 30% full, according to Albert.

Waterbury Mayor Neil O’Leary said Stop & Shop – which paid $8.5 million for the plaza in 2011 — never moved to install one of its supermarkets and did little with the property.

“The tenants slowly but surely evaporated,” O’Leary said. “They never did upkeep or general maintenance. It’s been an almost completely blighted property with the exception of the parts that were not part of the sale (San Marino).”

O’Leary said he is excited about the purchase by a local family known for quality work and a genuine dedication to the city. It is also great timing given millions of dollars of investment the city has and continues to place in the revival of the nearby Freight Street industrial corridor, O’Leary said.

“We are really happy because this is taking a piece of property that was severely underutilized for decades,” O’Leary said. “The Alberts have a very strong reputation. They are major real estate stakeholders. They own a significant amount of property and all of it is in pristine condition. Whatever their long-term plans are for the property, it will be beneficial to the city.”

Jake Albert said his family is still contemplating long-term plans. But in the short run, Cornerstone will renovate and rehabilitate the retail spaces and seek new tenants, he said. Albert couldn’t place a number on the renovation cost but pledged a “comprehensive” overhaul.
“We are focused on stabilizing and rebranding the property,” Albert said.

Business inquiries about the plaza can be directed to Cornerstone Realty via telephone at 203-597-0400. 

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