New Haven-based Knights of Columbus sells ownership stake in Long Wharf office building
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545 Long Wharf Drive, New Haven
A Connecticut-based commercial real estate management firm has become an ownership partner with the Knights of Columbus in a major New Haven office building that is a key component of the city’s Long Wharf Maritime Center.
Water Street took over operational control of the 252,000-square-foot building at 545 Long Wharf Drive on Nov. 1, and will relocate its headquarters from Guilford to a 4,500-square-foot suite in the building by Dec. 1.
Water Street currently owns and manages 18 commercial real estate assets and has offices in New Haven and San Antonio, Texas.
The Knights of Columbus will remain part owner and a major tenant in the building.
The building’s transition to Water Street was finalized after negotiations between Todd Taylor, managing partner at Water Street, and Tony Minopoli, chief investment officer for the Knights of Columbus.
Financial terms of the deal were not disclosed. The property has a total appraised value of nearly $43.9 million, according to city records.
Evan O’Brien, a senior director at real estate firm Cushman & Wakefield, arranged the sale of the partial interest and has been retained as the leasing agent for the building. He said both parties recognized that a partnership would be the most beneficial path forward.
The building is currently 55% leased, with the Knights of Columbus occupying 32,000 square feet. Other tenants include the Connecticut Conference of Municipalities, in roughly 30,000 square feet along with Ameriprise, Barclay Damon, Morgan Stanley and Tek Systems, O’Brien said.
“The buyer recognized that there's a 9% vacancy in downtown New Haven’s central business district, creating an opportunity for a strong owner-operator who is going to be in the building with capabilities not only in asset management but also property management and construction,” O’Brien said.
“Unlike many CRE investors since the pandemic, Todd and Water Street recognized the positive momentum in New Haven, particularly its office market,” O’Brien said.
"We believed in Todd and his team's vision for value creation at 545 Long Wharf and their ability to execute a strong asset management strategy," Minopoli said. "Water Street has our full support."
Water Street’s goal is to establish 545 Long Wharf Drive as the premier business address in New Haven, Taylor said, adding that the building is uniquely positioned in the market, especially after the Knights made essential capital improvements, maintaining the property’s high standard and operational efficiency.
“The manageable size of the building, its anchor tenants, its value proposition for Class A office tenants, its easy accessibility to I-95 and I-91 and its outstanding water views and free parking will prove this to be a great investment,” Taylor said.
The Knights of Columbus, as 545 Real Estate Holdings LLC, bought the property for $12.8 million in 2020. The building previously sold for $40 million in 2007, according to city records.
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