Hartford Business Journal

HartfordBusiness.com | March 22, 2021 | Hartford Business Journal 7 Vacant Capitol Ave. property available for potential mixed-use development T he $35 million conversion of the former Hartford Office Supply Co. building at 390 Capitol Ave., into 112 apartments was a key win for the city of Hartford and Capital Region Development Authority (CRDA), which provided a $7 million loan for the project. Those apartments — developed by Massachusetts-based Dakota Partners LLC — debuted in 2017 and have seen recent occupancy above 90%, according to CRDA. Now the state is hoping to leverage the Capitol Lofts' success into another potential nearby apartment development. The Department of Administrative Services recently issued a request for proposals for a buyer interested in purchasing state-owned property at 340 Capitol Ave. The vacant 1.25 acre site, which sits in the shadow of the Capitol Lofts and State Armory, is currently being used as a parking lot, but could be developed into a mixed-use commercial and multifamily residential development, according to DRS' RFP. The property is in an Opportunity Zone and in walking distance to the state Capitol, Legislative Office Building and The Bushnell. It's on the outskirts of the central business district, but is only about a mile from the XL Center. The RFP is open through June 11. Deal Watch By Matt Pilon mpilon@hartfordbusiness.com A fter failing to receive any submissions, the city of Hartford has pushed back the deadline for proposals to redevelop the Arrowhead building at 1355 Main St. and several vacant parcels around it. That's according to I. Charles Mathews, the city's development services director, who said developers will now have until early April to pitch redevelopment ideas for the Downtown North properties, which are part of the Salvin Block, located just west of Dunkin' Donuts Park. It's the second time this year that the city has failed to draw sufficient nibbles from private investors for a redevelopment project. Development services received four proposals to redevelop the former downtown Hartford fire department building at 275 Pearl St., but found each to be insufficient for various reasons. In January, the department formally notified the four developers that their pitches had not been selected. Mathews suspects the pandemic has some developers sitting on the sidelines when it comes to taking on new projects. Real estate experts say concerns over the cost to remediate the historic properties are also an issue. "We had real concern from day one with this [Arrowhead building] RFP whether or not, given COVID, that we would get the applications or submissions we needed to really make a decision," Mathews said. "We've sent out a number of RFPs over the past six months and the number of submissions has been fairly small." "It just has people not responding as they normally would," he added. Mathews said he hopes the recent sluggish RFP activity is just a temporary blip and that developer appetites for some of the city's most challenging parcels will grow in the coming months as COVID-19 wanes. Mathews is settling into his new role as the permanent director of the department of development services, the top economic development and planning agency within city government. He was nominated for that position late last month by Mayor Luke Bronin and was serving in an interim capacity since July. Mathews, of course, has a long history in city politics having served as a former deputy mayor. The lawyer-by-trade also has private- sector chops, having formerly worked for United Technologies Corp., now Raytheon Technologies. One of his top focuses now is getting underused properties redeveloped to improve the overall quality of life for city residents, he said. A greater mix of housing options and amenities are crucial to convincing more young professionals to live in Hartford, and pinpointing additional funding for first-time homebuyer subsidies would also help, he said. Teaming up While the city declined to select any of the four proposals for the Pearl Street fire station, they weren't without merit, Mathews said. He liked aspects of two of the plans, one of which called for housing on the upper floors of the three-story building and another that pitched an entertainment venue on the first floor. He said the city has encouraged the two developers — who he declined to identify, but said they were both experienced and had sufficient capital — to merge their proposals. "They're both super qualified and I think if they can marry their proposals, it'll be a site the city and residents can be proud of," he said, adding that he hopes to hear of some progress on the talks next month. Stadium, other bright spots While recent RFPs haven't gained a lot of traction, Mathews said he's excited about a number of bright spots in the city, chief among them the development happening around Dunkin' Donuts Park. Stamford-based RMS Cos. is building 270 apartment units with retail space and a 330-space garage in the ongoing project's first phase, which could begin leasing at the start of 2022. RMS CEO Randy Salvatore said he is also currently seeking financing for the development's second phase — 532 additional apartments and a 541- car parking garage — which could break ground later this year. Mathews was chair of the city's stadium authority, which helped shepherd the project through its difficult construction phase that was marred by delays, cost overruns and lawsuits. However, he says ongoing development around the stadium — as well as the hundreds of thousands of fans it was drawing to the city each year before the pandemic hit — proves that the $71 million ballpark was a good investment. "It proves the vision that some people had that the stadium would be a catalyst," he said. He admits that early on, even many project supporters never saw it as a sure thing. "It was iffy going into it. We weren't sure whether or not it would attract the types of developers we needed coming into the city," Mathews said. "One thing about development is you go with what you've got and in the end we were lucky enough, I think, to get the baseball stadium." RMS' project is key to building a stronger gateway into the city from the North End and creating a better connection between downtown and the city's neighborhoods, Mathews said, adding that talks with a grocery store operator for the Downtown North neighborhood remain ongoing. Mathews is also enthused by Spinnaker Real Estate Partners' recent proposal to convert the historic 205,000-square-foot 55 Elm St. office building into a mixed-use project with 164 apartments, and Shelbourne Global's continued investment in Hartford, including its purchase last October of the former Fuller Brush complex in the North End for $4.3 million. The multiple buildings totaling 326,000 square feet at Fuller Brush on Main Street could house a mix of offices, housing and light industrial activity. "That is a huge complex and we think that might be an opportunity to really stimulate job growth and bring some more money to the tax rolls, obviously," he said. "Shelbourne has the capacity with their resources to really change the character of North Main Street by moving that project forward." Hartford development boss Mathews hopes developer appetites return to normal Two developers are trying to merge their proposals to redevelop the former fire station on Pearl Street in downtown Hartford. Charles Mathews 340 Capitol Ave., Hartford Type: Vacant lot Size: 1.25 acres Starting Bid: $6 million Sale Type: State RFP Current Owner: State of CT RFP contact: Shane P. Mallory, shane.mallory@ct.gov PHOTO | CONTRIBUTED On The Market HBJ FILE PHOTO

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