Hartford Business Journal

HARTFORDBUSINESS.COM | September 26, 2022 7 DEAL WATCH The company that builds and installs the critical systems in virtually every type of facility is the same company you can rely on to maintain them. For over 50 years, our clients have trusted us to deliver end-to-end facilities solutions, so they can focus on their core business. Experts in: Facilities Services, Preventive Maintenance Programs, Onsite Operations & Maintenance NEMSI SERVICE SOLUTIONS INCREASE PRODUCTIVITY. REDUCE COSTS. 860.871.1111 Toll Free: 800.741.6367 nemsi.com MECHANICAL | ELECTRICAL | PLUMBING | SHEET METAL | BUILDING AUTOMATION | FACILITIES SERVICES License #'s: E1-0125666 S1-302974 P1-203519 F1-10498 SM1-192 MC-1134 Hartford a good bet Wonder Works got its Hartford start in 2012, when it partnered with another New York developer — Girona Ventures — to buy a long-va- cant hotel on Constitution Plaza for $500,000. The 250,000-square-foot building was remodeled into 193 apartments in a $23.6 million project that wrapped in 2016. Wonder Works and Girona subsequently remodeled two decaying Pearl Street office build- ings into modern apartments. They also purchased and remodeled the former Trumbull on the Park apartment building. The buildings — operating under the "Spectra" banner — feature premium amenities including a theater, fitness center, rooftop deck and more. Any amenity in the four buildings is open to all Spectra tenants. These projects made Wonder Works one of the most prominent players in the city's ongoing efforts to grow its downtown residential population and create a more thriving restaurant/retail culture. That has become all the more crucial as the pandemic emptied corporate office buildings and taught companies that much of their work- force can effectively work from home. Daniel Klaynberg said Hartford remains a great investment. He praised city staff as responsive to everything from inspection requests to road closures, which has saved considerable time and development expense. Even so, the Spectra apartment buildings were shaken by the pandemic. As occupancy declined in 2020, Girona sold its half-share in those buildings to local parking mogul Alan Lazowski and prominent developer Martin Kenny. Occupancy quickly bounced back into the 90s, Klaynberg said. New projects, new partners Now, Daniel Klaynberg is teamed up with new partners for mixed-use redevelopments of a former fire station at 275 Pearl St., and a former municipal building at 525 Main St. In November, the Hartford City Council signed off on a tentative deal to sell the buildings to Wonder Works for $785,000. Under the terms, Wonder Works was to lease the parking lots adjacent to the municipal building for $32,000 yearly, with an option to buy at any point for $162,000. Klaynberg is partnered with Matthew, Evan and Dean Levy — sons of prominent Hartford-area attorney Coleman Levy — on the redevelopment. The plan is to build 40 apart- ments at 525 Main St., and 36 rental units inside the fire house, with retail on the first floors of both buildings. Daniel Klaynberg said he has secured financing through Massachusetts-based PeoplesBank. Klaynberg said he plans to rede- velop parking lots associated with the municipal building into about 80 apartments with parking on lower levels of a six- to eight-story building. That work could begin in a couple years, he said. Officials and Klaynberg say they are on the cusp of finalizing legal agreements for the sale and redevel- opment of the firehouse, municipal building and associated lots. The municipal building already hosts a deli and shoe repair shop. Klaynberg said both are welcome to stay. A convenience shop operator has signed a lease to move into a roughly 500-square-foot space as well, Klaynberg said. At the fire station, Hartford restau- rant entrepreneur Gina Luari plans to open a 4,500-square-foot pizzeria. Coleman Levy had provided legal counsel to Joseph Klaynberg since his arrival in Hartford. Daniel Klayn- berg said Levy's local knowledge and banking connections proved crucial to prior efforts. Matthew, Evan and Dean Levy, as well as their mother, Judie, are principals in Levy Properties. The company is a legacy business from Judie Levy's side of the family. It has focused on redevelopment and leasing of Greater Hartford retail centers of up to about 65,000 square feet. Matthew Levy said it was "mutual respect" between his father and Joseph Klaynberg that paved the way for the sons' partnership. He said his family's expertise in retail will help keep the first floors of the redeveloped buildings filled with quality tenants. "Daniel and I have a very nice working relationship," Matthew Levy said. "They are good people. We have primarily been in retail strip centers, so this is a nice opportunity to diversify into multifamily with retail." As with virtually all market-rate apartment developments in Hartford, the Capital Region Development Authority is lined up to provide a portion of financing. CRDA Execu- tive Director Michael Freimuth said Daniel Klaynberg has represented the Wonder Works side throughout the latest deal. Freimuth said all of the necessary finances and legal agreements for the redevelopments are "pretty close" to being completed. "It's really been Dan, not Joe," Frei- muth said. "This is really a whole new creature. We've been dealing with Dan and his banks and his investors. The transition is relatively smooth." Coleman Levy

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