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January 20, 2023

One downtown Hartford apartment development launched in January, two more are on deck

HBJ PHOTO | GARY LEWIS Brothers Evan and Matthew Levy (pictured left to right), along with their brother Dean (not pictured), are partnered with Daniel Klaynberg (right) on several Hartford development projects including the rehab of a former firehouse at 275 Pearl St. in Hartford (pictured here) as well as a former municipal office building at 525 Main St.
By Michael Puffer

Anticipated conversions of three former government buildings in Hartford into hundreds of new apartments are expected to get into full swing shortly as developers finalize financing and purchase buildings.

A partnership between Wonder Works’ Daniel Klaynberg and brothers Matthew, Evan and Dean Levy began a conversion of a former city office building at 525 Main St. into 42 apartments in early January, after acquiring the building from the city in late December. 

The partners expect to acquire a shuttered firehouse at 275 Pearl St. in February, then immediately begin redeveloping it into 35 apartments. 

Spinnaker Real Estate Partners’ long-anticipated redevelopment  of a massive former state office building at 55 Elm St. into 164 apartments is expected to begin in spring.

Capital Region Development Authority Executive Director Michael Freimuth, speaking at a CRDA board meeting Thursday, said financing had closed on the 525 Main St. and 55 Elm St. projects and work would begin shortly. 

Freimuth said a $67-million capital stack had been secured for the project at 55 Elm St., which will launch in the spring. 

HBJ Photo | Joe Cooper
The former state office complex at 55 Elm St. is set to be converted into 164 new apartments.

Attempts to reach a Spinnaker representative Friday were unsuccessful. The Norwalk-based developer paid $6.8 million for the state office building, and acquired a trio of nearby parking lots, in early 2020.

The Klaynberg-Levy partnership closed a $425,000 acquisition of the Main Street office building in December.

The city didn’t immediately get its money, instead entering into a mortgage that will see the money paid when the property is refinanced or transferred.

Abatement of hazardous materials and interior demolition at the Main Street office building began Jan. 3, Klaynberg said. Framers and electricians will be at work within weeks.

The acquisition of the firehouse has been held up by unexpected jumps in cost due to historic preservation mandates. Nonetheless, Klaynberg anticipates closing on the Pearl Street building by mid-February. He has an agreement to acquire the 30,369-square-foot firehouse for $360,000.

Klaynberg said it will take about 18 months to convert both buildings, with much of the work being coordinated to save costs.

Wonder Works has already been a partner in the development of more than 550 apartments in downtown Hartford over the past decade and Klaynberg said he is happy to work on historic downtown buildings in a city that has seen strong demand for apartments.

“We are just very excited to get these projects off the ground,” Klaynberg said. “We are very happy to hear about the absorption in other projects. Our other four buildings have been doing great.”

Both of the Klaynberg-Levy projects will include first-floor retail. Celebrated local restaurant entrepreneur Gjinovefa “Gina” Luari is on tap to open a new pizzeria in 4,500 square feet on the first floor of the firehouse. The municipal building already hosts a deli and shoe repair shop. Klaynberg said a cigar and tobacco shop has signed a lease for a vacant spot.  

The city has also agreed to lease parking lots beside the Main Street office building to the Klaynberg-Levy partnership. City officials hope to see the lots converted into an additional apartment building.

Klaynberg said he and his partners hope to launch that additional construction project in a year or more and are working on design concepts. He offered a very tentative prediction that building might add another 40 to 60 apartments.  

“We are just trying to figure out the best cost-benefit analysis and see how high we can get for views of the park,” Klaynberg said.

Klaynberg and his partners, acting through a project-specific LLC, borrowed $4 million from PeoplesBank in Holyoke, Massachusetts for the Main Street project, and another $2.1 million from CRDA. Klaynberg said the partners will add another $1.3 million in equity. Of the Peoples loan, $800,000 is a bridge loan in anticipation of historic credits. 
 

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