Hartford Business Journal

HARTFORDBUSINESS.COM | August 29, 2022 7 Deal Watch LuAnn Ballesteros, Jackson Laboratory's vice president of external and government affairs, said many of her organization's Farmington-based employees are looking for short-term rental lodging in town. RENDERINGS | CONTRIBUTED Housing Boom Backed by employer support, Farmington sees wave of multifamily development By Andrew Larson alarson@hartfordbusiness.com W ith a plethora of stately homes and modest dwell- ings, both new and old, Farmington's housing stock includes options for people at different stages of life, at various price points — as long as they're willing to take out a mortgage. The dearth of multifamily construc- tion in this town where business is booming has made it difficult for people seeking to relocate without the means or inclination to buy property, developers say. That's about to change. Until recently, the town hadn't approved a multifamily develop- ment since 2013, which developers believe created pent-up demand. Now, there are at least six multifamily proposals underway. "I think the main issue is that Farmington has been underserved," said Jacob Reiner, chief operating officer of CSRE, a real estate acqui- sition and management company based in Lakewood, New Jersey. "There hasn't really been any new construction. The supply really hasn't kept up with the demand." CSRE is one of the first companies to take advantage of Farmington's special innovation floating zone. Following an update to the town's Plan of Conservation and Devel- opment in 2018, the Planning and Zoning Commission established the innovation zone to allow higher-den- sity multifamily and retail/commercial development on the same parcel in the UConn Health neighborhood. CSRE bought the former Hartford Marriott Farmington hotel last year and is converting it into 225 apart- ments. The first units in the high-end apartment complex, called UpHouse, are expected to open in October. The 381-room hotel at 15 Farm Springs Road closed early in 2021. Each apartment will comprise about two hotel rooms. The mixed-use development will include indoor and outdoor pools, yoga rooms, a fitness club along with other resort-style amenities. Non-resi- The outdoor pool at UpHouse, a 225-unit apartment redevelopment at the former Hartford Marriott Farmington hotel, will feature a lounge area and cabanas. HBJ PHOTO | STEVE LASCHEVER dents will be able to purchase passes to the amenitized areas. "There's very strong demand for Class A-type housing in Farmington and in the Greater Hartford area as well," Reiner said. "We're looking to deliver a unicorn type of product that really doesn't exist." Prime real estate along the Route 4 corridor, near UConn Health and Jackson Laboratory, was not avail- able for mixed-use development until recent changes approved by the Planning and Zoning Commis- sion, which eased residential zoning restrictions. Zoning change Farmington Economic Devel- opment Director Rose Ponte said the new zoning laws give developers more flexibility and promote the type of housing the town needs — while leaving legislative authority to the commission. As of 2017, 30.4% of Farming- ton's land uses consisted of single- family homes, compared to 4.1% multifamily, according to the Plan of Conservation and Development. Also, more than 72% of Farmington's housing stock was composed of single-family homes on large lots. "The lack of smaller, modern and high-quality rental units in Farmington will exacerbate the disproportion- ately high percentage of persons over 65 when compared to the rest of the state," the 2018 conservation plan said. The plan also noted that younger people were opting not to make the long-term commitment of homeown- ership, sometimes because they didn't qualify for a mortgage due to poor credit, lacked the ability to make a downpayment or had too much student loan debt. "(The) aging population coupled with a lack of attractive rental options will become a very significant issue in Farmington," the conservation plan said. "This will transpire as younger residents move to more urban areas with more rental options." Desirable location Even so, Farmington is a popular place for local employees to live. Ponte said the town is desirable for families and younger people starting their careers, with its relatively low taxes, top-notch schools and thriving economy. "We have one of the lowest tax rates (29.32 mills) in all the towns that surround us," Ponte said. "We're known to be very fiscally responsible, but at the same time, delivering excellent town services. We have wonderful schools, we have safe communities, we're steeped in history and preservation. We value our open space." Those might be some of the reasons Farmington — which has a population of a little more than 25,000 — averages about 32,000 employees who work in town. "That, in itself, gives demand, because everybody, I think, would rather live closer to their job rather than further away," Ponte said. The largest employer, UConn Health, has 4,660 regular payroll employees, with 397 living in Farm- ington — the town with the second- most UConn Health employees after West Hartford, a spokesman said. Meanwhile, Jackson Laboratory, a nonprofit biomedical research institu- tion, employs more than 450 people Continued on next page

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