Hartford Business Journal

7 HARTFORDBUSINESS.COM | NOVEMBER 1, 2021 DEAL WATCH October by rejecting for a second time a needed zoning change, citing concerns about competition for downtown retailers and a desire to see a new anchor store in the space. Levin, whose company has won approval for similar mall transformations in Illinois and California, said he was "extremely disappointed" by the decision. He said he is unsure what the company, which wanted to invest $120 million in the project, will do next. "These properties cannot stay the way they are," Levin said. "They are too big today. A 1.4-million-square- foot retail property is not what works today. What we are doing and what we are proposing we believe very strongly is the right approach." Other uses The 900,000-square-foot Meriden Mall, among the state's most distressed shopping centers with numerous empty storefronts and two empty anchor sites, is headed in a different direction. In October, Yale New Haven Health announced it would buy the old Macy's store there and turn it into a healthcare facility. But that $2.8 million deal, while good news, was negotiated with Macy's, which owned its own store, not the mall owners, Namdar Realty Group and Mason Asset Management, both based in Long Island. Namdar, which has a history of buying distressed malls at bargain prices, has yet to lay out a plan publicly to revive the struggling complex and did not return calls for comment. Meriden Mall, which Namdar purchased in 2020, is about to lose yet another major tenant, Best Buy. Joe Feest, Meriden's economic development director, is nonetheless upbeat. He noted that a dinner theater recently announced plans to open a 13,500-square-foot entertainment venue inside Meriden Mall in space once occupied by Ann Taylor Loft, Enzo's Clothiers and Parade of Sports Novelties. He is in regular contact with the mall manager, although he said he'd like to work with the owners more closely to stabilize the facility. "They're a little slow getting stuff done for people who are in there currently," Feest said. "But they seem to be getting it done." In 2019, Namdar also bought the struggling Enfield Square Mall for $11.4 million via auction. That 786,000-square-foot mall had a 57% occupancy rate at the time of the sale, according to published reports. The future of the struggling 1.2-million-square-foot Brass Mill Center in Waterbury, which is also dogged by vacancies and greatly reduced foot traffic, is likewise unclear. Naugatuck Valley Regional Development Corp. CEO Thomas Hyde said he agreed that malls PHOTO | CHRISTOPHER HOFFMAN need to transform themselves but was unaware of Brass Mill owner Brookfield Properties' plans for the property. The company did not return calls and emails seeking comment. Earlier this year, the Hartford Business Journal reported that brokers for the owners of the Corbin Collection shopping center in West Hartford and the shuttered Lord & Taylor store at Westfarms mall just over the border in Farmington were working to find tenants who would repurpose tens of thousands of square feet of vacant retail space into office and other uses. The bankrupt Lord & Taylor closed its Westfarms store in the past year, leaving vacant a 120,000-square-foot building once considered key anchor tenant space. Canada-based Hudson Bay Co., which owns Lord & Taylor's real estate nationwide, has been marketing the property through CBRE as a high-end office redevelopment or for medical offices. The Corbin Collection is a relatively new shopping center that debuted in 2018. New York-based Seritage Growth Properties redeveloped the site, which was the former long-time home of Sears before the retailer closed in 2017. Overall, the shopping plaza in the Corbins Corner section of West Hartford has been successful in luring retailers such as REI, Saks OFF Fifth, Buy Buy Baby, Cost Plus World Market and Shake Shack. It also has a Go Health Urgent Care clinic. But 45,000 square feet of space remains unoccupied and Seritage hired brokers to market it as potential office or medical space, or creative lofts. While Connecticut's malls can reinvent themselves, Centennial CEO Levin said he believes the window of opportunity for some properties is closing. Forces undermining traditional malls are unrelenting, steadily eroding their viability. Municipalities and owners must act now before things get worse, he said. "People say we'd like to see this, we'd like to see that," he said. "The reality is, you can't wait for something to show up. The reason you can't wait is the traditional mall is declining. Waiting is not a good plan." The Brass Mill Center in Waterbury has been impacted by vacancies and reduced foot traffic Can downtown Hartford's thriving apartment market help fill vacant storefronts? By Terry Corcoran tcorcoran@hartfordbusiness.com T he pandemic's effects can be seen in the vacant storefronts in downtown Hartford. But with the many new apartments being built and leased downtown, landlords and city boosters say they hope it's only a matter of time before those storefronts find new tenants. "With all those apartments, you're getting a built-in clientele," said Kevin Kenny, vice president of Lexington Partners, a major downtown landlord. "That's one of the major benefits we're selling." To that, he said, you can add the many people moving into downtown Hartford. Over the last decade, downtown has added more than 2,000 new apartment units, with hundreds more in the pipeline and scheduled to come online in the years ahead. Despite the pandemic slowing leasing activity last year, most center-city apartments, which have been financed with subsidies from the Capital Region Development Authority, have been able to maintain or return to occupancy rates of 90% or above. "It's a lot of people from Boston and New York City who are able to work remotely and want to be closer to family but still crave city living," Kenny said of some of the newer tenants moving downtown. Julio Concepción, executive director of the Hartford Chamber, agreed the success of downtown apartments can provide new business opportunities. "Downtown over the last decade has seen such a rise in residential base so you have that population that's already here," he said. "The key is getting them from upstairs to downstairs to have dinner or grab a beer." The Chamber on Oct. 21 showcased vacant downtown storefronts in a "Restaurant and Retail Open House." About 30 people went on self-guided tours of available storefronts, where they could inspect the premises and speak with a property manager. Of course, vacant retail space isn't a new problem for downtown. It's an issue that's plagued the city well before the pandemic hit Hartford's shores. And it's not clear what the current retail vacancy rate is — it's a number that's not been well-tracked over the years, but a walk through downtown shows vacant storefronts on nearly every street. 'We're ready' Among those who attended the recent Hartford Chamber event were Monica Beaudoin and Alex Pilon of Bloom Bake Shop, a popular online bakery. The sisters run it out of a rented kitchen in Hartford but are looking for a permanent space where they can open a coffee shop and expand their menu. And they're looking closely at downtown Hartford. "We really think downtown has a need for a bakery and what we have planned," Beaudoin said. "We're ready to move into a space with a large kitchen and also a storefront for retail," Pilon added. The sisters also understand that the many rented apartments in downtown Hartford provide the potential for a strong customer base. Continued on page 9 PHOTO | CONTRIBUTED Monica Beaudoin (left) and Alex Pilon of Bloom Bake Shop. Shannon Mumley (left) and Julio Concepción of the Hartford Chamber, at a recent open house the chamber sponsored to show available downtown storefronts to potential tenants. PHOTO | TERRY CORCORAN

• Cover