Hartford Business Journal

5 HARTFORDBUSINESS.COM | MAY 3, 2021 DEAL WATCH What Can We Do For You? 860.871.1111 www.nemsi.com 55 Gerber Road East, South Windsor, CT 06074 For over 50 years, clients have counted on NEMSI for: HVAC, Plumbing and Process Piping | Electrical Services Energy Management Systems | LEED Certification Programs Design-Build Construction | 24/7/365 Emergency Response Comprehensive Preventive Maintenance Programs NEMS's Recent Awards Include: » ABC Platinum Safety Award » ABC Accredited Quality Contractor (ABC-AQC) » ABC Excellence in Construction Award » ABC Specialty Contractor of the Year » Contracting Business First Place Design/Build Award License #s: E1-0125666 • S1-302974 • P1-203519 F1-10498 • SM1-192 • MC-1134 Offices in: New London | Trumbull | Pawtucket, RI Palmer, MA | Manchester, NH | Albany, NY So You Can Focus On Your Business We focus on your facilities ES_NEMSI HBJ Hlf pg_201221.indd 1 ES_NEMSI HBJ Hlf pg_201221.indd 1 12/21/20 5:05 PM 12/21/20 5:05 PM industry, according to Ben Zachs, chief operating officer of Connecticut and Massachusetts dispensary operator Fine Fettle. He said some states — like Oregon and Colorado — have granted too many licenses, which has diminished the return for some investors who put their money in with stars in their eyes. "What ends up happening is the lower-capitalized businesses end up failing and guys lose the shirts off their backs," he said. "It's not a cheap business to get into, there are lots of regulations, you need a lot of employees, you need to build an enormously beautiful and expensive vault." Fine Fettle has lobbied state lawmakers to grant adult recreational and medical marijuana hybrid licenses to the owners of existing dispensaries, then a round of 18 more licenses to minorities and other social equity applicants impacted disproportionately by the war on drugs, and a final round of 18 licenses open to any bidder, resulting in 54 total adult-use dispensaries. Zachs said he is also convinced that growers will have a hard time meeting the new potential demand for cannabis. "There is absolutely not enough supply to support an adult-use market in Connecticut right now," he said. A spokesperson who represents the four growers did not respond to a request for comment for this story. Fine Fettle says its dispensaries in Newington and Willimantic could be converted fairly quickly to accommodate an influx of recreational pot users. It's not clear whether most other dispensaries are similarly ready, or whether they would be in the market to lease or buy bigger properties. Though many feel legalization is as close as it's ever been in Connecticut, there's still uncertainty, and putting properties under agreement can get costly, especially if things don't go as quickly as hoped, Zachs said. He points back to several years ago, when the state doubled the number of dispensary licenses, which prompted speculation — and perhaps speculative property deals — that producer licenses might be forthcoming. "For two or three years, some people may have held onto real estate and not seen it come to fruition," he said. "You're paying $60,000 a year for the right to potentially apply for a license without knowing if the town's going to approve it? It's easier said than done." Steven Stafstrom On The Market Key state-owned downtown Hartford office buildings officially for sale By Greg Bordonaro gbordonaro@hartfordbusiness.com It's official, a pair of state-owned historic buildings in downtown Hartford are for sale, in search of owners interested in redevelop- ing the properties into mixed-use residential. The properties are 18-20 Trinity St., an 87,637-square-foot office building on 0.85 acres with 43 on-site parking spaces; and 30 Trinity St., a 76,665-square-foot office building on 0.8 acres with 24 on-site parking spaces. The buildings, which were listed for sale in mid-April and have a combined assessed value of $6.1 million, according to city records, were built in the early 1900s and are in an area seen as key for the ongoing redevelopment of Bushnell Park South. They formerly housed state agencies that have relocated mainly to the nearby State Office Building at 165 Capitol Ave., which underwent a $205 million renovation last fiscal year, making room for the offices of the Attorney General, Comptroller, Treasurer and others. The state Department of Administrative Services, which oversees state government's realty holdings, is handling the sale. It issued a request for proposals for the properties, which can be sold individually or together. The deadline to submit a bid is July 9, according to the RFP. Capital Region Development Authority Executive Director Michael Freimuth has said the properties are key pieces that could bring housing to the neighborhood around The Bushnell. New rental units on Trinity Street would complement the mixed-use conversion of a historic office building at 55 Elm St., which has been used in recent decades by state workers. Norwalk developer Spinnaker Real Estate Partners is leading the Elm Street conver- sion and is moving forward with a proposed $63.3 million, 164 unit mixed-use apartment redevelopment that will include cowork- ing and restaurant space. Up to 70 of the living units will be constructed so they can be available for hotel rooms, if the market justifies the need. If sold for redevelopment, the Trini- ty Street properties would be the largest Hartford transaction for the state since DAS unloaded 25 Sigourney St. — a 667,000-square-foot office tower with a condemned parking garage and other chal- lenges — two years ago to a Florida-based commercial realty developer who is seeking to lease to corporate office tenants. 18-20 Trinity St.; 30 Trinity St. Type: Two office buildings Listing price: None Size: Combined 164,302 sq. ft. Current owner: State of CT Sale contact: Thomas Piacenza, 860-713-5100 PHOTO | COSTAR

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