NewHavenBIZ

42 n e w h a v e n B I Z | J a n u a r y 2 0 2 0 | n e w h a v e n b i z . c o m T H E L O O P WHAT'S THE DEAL? Apartments, retail on tap for former Comcast site in New Haven By Michelle Tuccitto Sullo L engthy litigation stymied redevelopment at the former Comcast property in New Haven for years, but the recently sold site finally seems poised for new life. e new owners are planning new construction featuring apartments and street-level retail on the Chapel Street property. In mid-November, Spinnaker Residential LLC of Norwalk sold 630 Chapel St., the former Comcast site, and a neighboring empty lot at 673 Chapel, to Chapel Street Residences Owner LLC of Houston, Tex. for a combined $14.5 million. e Comcast building sold for $10.4 million, while the neighboring lot sold for $4.1 million, according to the city assessor's office. e new owner is a holding company of Hines Interests Limited Partnership of New York City. Hines' global headquarters is in Houston. Grant Jaber, who is managing director of multifamily residential development for Hines and works at its Fairfield office, said the company launched a strategic initiative a decade ago to expand its housing footprint throughout the country. When asked why the company became interested in New Haven, Jaber says the city is an "emerging market." "We are intrigued by the growth at Yale University and Yale New Haven Hospital, two permanent institutions that will continue to grow and support the economy," Jaber says. Spinnaker, which acquires, develops and manages commercial and residential properties, originally bought the property in 2015 for $3.3 million. However, its original development plans were waylaid by litigation. Aer Spinnaker got city approval four years ago to develop the site, 78 Olive Street Partners LLC, which owns property at neighboring 78 Olive St., filed a lawsuit in Superior Court against Spinnaker and the city. e litigation raised concerns about stormwater runoff and negative impacts on water quality in Long Island Sound from the development project, court documents show. e Strouse Adler ("Smoothie") apartment building is at 78 Olive St., and a nearby new residential development is a likely competitor. Ultimately, the parties in late 2018 reached a settlement agreement, in which the plaintiff agreed to not oppose the development as long as it is substantially similar to what was originally approved, with mixed residential and retail use. Spinnaker got an extension on its original project approval shortly before selling the property. Moving forward In November Hines outlined its plans for the properties with the City Plan Department. "We plan to construct the approved plans," Jaber told New Haven BIZ in December. "We're excited to be in the Wooster Square neighborhood. is will be a transit-oriented development and walkable to the rest of downtown. We provide housing choices near employment centers with walkable, amenitized communities." e latest plan provided to the city includes slightly fewer housing units, parking spaces and retail square footage. Under the current site plan, the property at 630 Chapel would have 162 housing units, 122 parking spaces and 3,437 square feet of retail. e 673 Chapel site would have 68 units, 64 parking spaces, and 2,298 square feet of retail. Overall, that means 230 residences, 186 parking spaces and 5,735 square feet of retail. e parking includes a mix of garage and surface spots. According to Hines, the development includes a potential restaurant use. e former Comcast building will be razed, with demolition to begin during the first quarter of 2020, according to Jaber. Construction will begin immediately aer the properties are cleared, he said. Hines will start marketing the retail space in 2020, and as of mid-December, Jaber did not yet have information on any potential tenants. Founded in 1957, Hines is a real estate investment, development and management firm. It reports having a presence in 23 countries, with $124.3 billion of assets under management. Its current property and asset management portfolio includes 514 properties, represent- ing over 222 million square feet, according to Hines' website. According to Jaber, the New Haven property is its sole Connecticut project, though it has a similar development in Sleepy Hollow, N.Y. n The former Comcast building at 630 Chapel St. in New Haven. The new owner plans to knock it down to make way for a new residential and retail development.

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