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September 30, 2024 Deal Watch

Windsor looking to fast-track Day Hill Road corridor redevelopment strategy with new study

PHOTO | COSTAR The Day Hill Corporate Area in Windsor has significant office space vacancies, including in The Hartford’s 457,396-square-foot building at 1 Griffin Road North, which has been for sale since 2022.
PHOTO | COSTAR Voya Financial put its 470,000-square-foot Windsor office building, at 1 Orange Way, up for sale in August 2022.
By Hanna Snyder Gambini

The town of Windsor has generated investment, jobs and tax revenue through 16 million-plus square feet of new commercial and industrial development in the last 20 years, town officials said.

Much of that was within the Day Hill Corporate Area, a 3,000-acre industrial and commercial zone that has been an economic driver for the town, region and state.

But shifting market forces and the effects of the COVID-19 pandemic have left an abundance of vacant office space in the Day Hill Road corridor, while the amount of developable land dwindles and demand for residential projects statewide grows.

So, is more commercial and industrial development appropriate for Windsor’s main corporate stretch, or would a more diverse mix of uses bring sustainability and long-term economic stability to the town?

Patrick McMahon

Those are questions local officials, led by Economic Development Director Patrick McMahon, are trying to answer by commissioning a study to analyze the market’s current economic climate and provide recommendations that will sustain the area as a regional economic development generator.

McMahon said it’s time to explore all possible uses within the corridor — with help from community input — and eventually align zoning regulations for future commercial, industrial and/or multifamily projects.

The Day Hill Corporate Area stretches from Day Hill Road south to Bloomfield Avenue, and from I-91 West to the Bloomfield town line.

Recently completed projects in the corridor include a 170,000-square-foot logistics center at 425 Day Hill Road, where developer Luzern Associates is seeking a tenant.

A new 165,000-square-foot Safelite Auto Glass center was built at 105 Baker Hollow Road, and a 180,000-square-foot warehouse was recently completed at 205 Baker Hollow Road, which will house tenant Marvin Windows.

These projects join other nearby developments like a sprawling Amazon distribution facility and the Day Hill Dome, which is part of a larger recreation and entertainment center.

Mix of potential uses

The town of Windsor is currently searching for a firm to conduct the analysis of the Day Hill Road corridor. It will include a look at the current land uses in the area, and a supply-and-demand breakdown for other development possibilities ranging from multifamily residential, assisted living, office, hotel and retail projects, along with industrial uses such as manufacturing.

The study will also map out the best locations for multifamily and mixed-use projects, and make recommendations for the adaptive reuse of vacant or underutilized office space.

Town officials expect a final report to be completed by February.

Once the study is done, the town will consider any recommendations for zoning changes based on data and community input.

“We’re not certain how much multifamily will be supported or what locations will be deemed appropriate for multifamily, but that’s what the study will determine,” McMahon said. “We’ve had developers interested in a few parcels in our industrial zone for multifamily. One was a vacant parcel, and another parcel includes an existing office building that they thought they could potentially redevelop.”

Currently, multifamily development is not allowed within the Day Hill Corporate Area’s industrial zone without special permitting, a zone change or creating an overlay district.

That creates extra red tape for developers.

For example, the mixed-use residential and industrial Great Pond development, which features a 230-unit apartment complex that is now more than 90% occupied and a 500,000-square-foot Target distribution center, had to become its own zoning district in order to allow the residential component, town officials said.

Creating separate zoning for each potential development would be time-consuming for the applicant and the town.

“We’re trying to be responsive to private-sector interests,” said Windsor Town Planner Todd Sealy.

Sealy said community engagement sessions will give the consultants an idea of where residents want to steer development in that area.

Office abundance

Officials expect a portion of the study to focus on repurposing office space, as Windsor has an abundance of corporate parks and one of the state’s highest office vacancy rates.

The Windsor market suffered significant setbacks in 2022, when corporate insurance giants Voya and The Hartford put up for sale massive 
office buildings they owned and significantly reduced their presence in. Both companies cited an embrace of remote work that lessened their need for space.

Voya Financial put its 470,000-square-foot Windsor office building, at 1 Orange Way, up for sale in August 2022, seeking a buyer that would allow it to lease back 85,000 square feet. The building was constructed for Voya (formerly ING) at a cost of $100 million in 2007. 

The building is now valued at $13 million, according to town records, and remains for sale without an asking price.

In June 2022, The Hartford announced plans to sell or lease its 457,396-square-foot Windsor office building at 1 Griffin Road North, as it reassigned 500 workers to offices in Hartford. The property, which sits on 72.9 acres, is currently valued at $18.9 million, and remains listed for sale.

More than 59% of Windsor’s 3.16 million square feet of office space was vacant at the end of the first quarter of 2024, according to real estate firm CBRE. The town’s 13 Class A office buildings, with 1.9 million square feet, had a 75.7% vacancy rate.

Landlords and developers state-wide are repurposing office space into residential, commercial or mixed uses, and McMahon said there is interest for similar projects in Windsor.

Landlord and developer Mark Greenberg owns several Windsor office buildings with high vacancy rates and has been mapping out plans for potential multifamily conversions, including for a 46,093-square-foot, three-story office building at 10 Targeting Centre that is completely vacant.

McMahon said the study’s goal is to ensure the Day Hill Road corridor remains an economic engine.

“We have office products with manufacturing, some recreation uses, small-scale retail, and it’s beneficial to have those various types of uses,” McMahon said. 

“If one particular market goes down and another one is going better, it helps us create long-term resilience, and that’s the point of the study.”

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