Hartford Business Journal

8 HARTFORDBUSINESS.COM | March 14, 2022 DEAL WATCH recognized in the U.S., there was more opportunity, he said. "You can be successful in America if you work hard and are smart," Lakhotia said. Lakhotia's 2006 move was also motivated by a desire to be close to his wife's parents in Norwalk. That made his wife happy. And her parents have played a big role in the upbringing of his daughters, Isha, 8, and Rhea, 7. After first moving to Connecticut, Lakhotia made a living managing dental offices. Then he worked as a consultant establishing new dental practices in partnership with licensed dentists. Lakhotia tried his hand at becoming a landlord in 2012 to supplement his income, starting with two- and three- family buildings in New Haven and Bridgeport. As he gained confidence, he invested in larger and larger buildings. Eventually he decided to focus exclusively on residential investments. The apartments Lakhotia is building in New Britain have been entirely market rate. Pooled investment strategy Today, Lakhotia said he manages a portfolio of about 500 apartments in 20 buildings in Bridgeport, New Haven and New Britain. He raises project funding through an extended circle of family and friends who buy shares in each venture. That investment strategy is playing out in Lakhotia's transformation of a former downtown New Britain rooming house known as the "Doris Building." The first floor of the brick building at 27-31 Main St. has six retail tenants, but the upper two went vacant for decades before Lakhotia bought it for $1.1 million in March 2021. Lakhotia has hired New Britain- based TLong Construction Co. to transform the empty floors into 24 apartments, a roughly $2.2 million project he expects to complete this month. Seven investors have pooled their money for the Doris Building redevelopment. The largest is in for $300,000; the smallest for $100,000. Lakhotia has $250,000 of his personal money invested. "I don't just play with investors' money," Lakhotia said. "I put my own money down. In each building, my skin is in the game. That gives my investors confidence." Amit Lakhotia's New Britain apartment project pipeline 38 Main St. This 35,181-square-foot brick and masonry building sold for $2.5 million in March 2021. Completed in 1905, the building contains 42 apartments and has five retail spaces on the first floor. Lakhotia said he has upgraded entry access, security and hallways and plans to update apartments as they are vacated. 27 Main St. A 29,948-square-foot building completed in 1918, the "Doris Building" was purchased for $1.1 million in March 2021. The former rooming house has five retail spaces on the first floor. Lakhotia is nearing completion of a roughly $1 million renovation of the top two floors into 24 apartments. 10-12 Washington St. A limited liability company headed by Lakhotia paid $4.1 million last July for the 0.8-acre property hosting the Miss Washington Diner building and a 41,043-square-foot retail and apartment building. The larger building hosts 52 apartments, according to city assessing records. 5-39 Arch St. Lakhotia purchased this 22,905-square-foot, 121-year- old brick building for $710,000 on Jan. 21. The first floor has seven retail spaces. Lakhotia said the second floor will be converted into 10 apartments in a seven- month project. 480 Myrtle St. This 135,000-square-foot former Stanley Black & Decker office building will be converted into at least 106 studio and one-bedroom apartments, with estimated development costs of up to $7.5 million. It was purchased as part of a four-property, $2.5 million sale in February. The building will feature amenities on each floor, including a fitness center, gaming room, library and movie theater. Work is anticipated to begin this month and finish within 12 to 15 months. 500 Myrtle St. The 0.86-acre parking lot purchased as part of the four-property sale in February will be used as parking for the new apartments at 480 Myrtle St. 47 Bond St. It's 2.6 acres of industrially-zoned land currently covered by pavement in poor condition. Lakhotia said he aims to build a 56-unit apartment building using this and three neighboring properties. That includes two derelict properties currently owned by the city and 495 Myrtle St., a nearly quarter- acre property with an empty 2,205-square-foot retail building that was part of the February sale. 102 West Main St. and 41 Court St. Lakhotia in February paid $1.6 million for a 48,475-square-foot building on a half-acre lot at 102 West Main St., as well as a quarter- acre paved lot at 41 Court St. Lakhotia said he is working with the city to create a residential development concept. Special tax district unlocks large, mixed-use development in Cheshire By Michael Puffer mpuffer@hartfordbusiness.com H eadline-grabbing proposals for a mall and outlets on an undeveloped, 107-acre piece of Cheshire's north end came and went in recent decades. This month, bulldozers, excavators and other equipment are pushing into the wooded area, preparing utilities that will unlock the land for a large development of housing, retail and commercial uses. The key to the project finally getting off the ground is a series of agreements by the town to repay the developers of "Stone Bridge Crossing" up to $7 million in costs for sewer, water and other infrastructure investment. The Stone Bridge Crossing property is part of a slice of Cheshire cut off from the bulk of town by Interstate 691. There was no direct access for water and sewer, making utilities installation a major impediment. A consultant working for the current property owners estimated $8.5 million in infrastructure costs. A series of agreements secured in the past two years allow the town to reimburse developers for the infrastructure investment from new taxes generated by the project. It's what's known as a tax increment financing (TIF) deal. That money comes with strings. The development needs to add at least $50 million in value to the property before reimbursement can begin, and at least $15 million of that needs to come from commercial construction. The property owners – Tri-Star Development and Miller Napolitano Wolff – have an approved master plan allowing development in three phases, including: • Up to 140 homes • 300 apartments or condos and a 5,500-square-foot gas station/ convenience store • 90 age-restricted multifamily units, 19,500 square feet of medical office, a 150-room hotel and three free-standing restaurants. Cheshire Economic Development Director Andrew Martelli said these phases don't need to come in any A bulldozer on the western edge of the Stone Bridge Crossing development site, just west of Route 10 and north of Interstate 691 in Cheshire. HBJ PHOTO | MICHAEL PUFFER Andrew Martelli

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