NewHavenBIZ

n e w h a v e n b i z . c o m | J a n u a r y 2 0 2 3 | n e w h a v e n B I Z 13 Wallingford, CT Spinal Cord Injury • Brain Injury • Stroke • Pulmonary World-Class Rehabilitation in a Restorative Setting Rents stay high as volume slows Although brokers say demand has slowed a bit from last year's hyperactive market, interest remains strong for luxury apartments in the city's core, and rents are still at historic highs, according to Carol Lopez Horsford, owner and broker at New Haven-based Farnam Realty Group. "ere was much more demand last fall compared to this fall, but I think that's also because we were just coming out of the real shortage of the pandem- ic," Horsford said. "In September, Octo- ber, November of (2021), there wasn't a single apartment in New Haven." Horsford said she is seeing fewer would-be renters, but apartments at the new 575 Whitney — a 24-unit redevel- oped former church — were still 75% leased within a month of coming on the market. Rents for one-bedrooms at the complex in the hot East Rock neighborhood start at $1,995 a month. Horsford credits the market's on- going strength to both New Haven's growth and larger social trends in the wake of the COVID-19 pandemic. "e rental demand has remained high and I think improved over COVID because people want to move to the cities," Horsford said. "ey don't want to be stuck out in their big house so they sell and want to move downtown." at trend is ongoing, she said, as Baby Boomers downsize and look for more manageable living spaces. In the past, "you only lived in New Haven if you had to be here," Horsford said. "And now I think it's a fun, hip, vibrant place to be." Growth at Yale and other universi- ties, Yale New Haven Health and the city's biotech sector are underpin- ning the market for both apartment complex sales and new development as more people move to the city, said New Haven Economic Development Administrator Michael Piscitelli. "ose are underpinnings that open up opportunities," Piscitelli said, speaking at the ground-breaking for a new 398-unit apartment complex at 201 Munson St. "ese are all part of the formula. We're at a population that we haven't seen since the mid-1970s." Even with a strong market, New Haven is unlikely to see more high-rises like 360 State, said Deputy Economic Development Director Steve Fontana. Most new complexes in the city top out at five stories due to the high price of the steel to build taller. Even so, some taller buildings have been proposed for the corner of State and George and at the site of the demolished New Haven Coliseum. "ey're coming, but they cost a lot more and you have to project that much more demand," Fontana said. "So it's a higher reward, a higher risk." 360 State revamp To keep competitive in a tightening market for luxury rentals, new 360 State owner Friedman is planning at least $10 million in renovations and upgrades, including roller shades and upgraded lighting for the apartments. "We're going to do a big overhaul of the amenity spaces and the common spaces," Friedman said, in addition to adding co-working areas and updating the lobby. Developer Bruce Becker designed and built 360 State on the site of the old Shartenberg store, seeking to attract both Yale affiliates and emp- ty-nesters. e granite countertops and commanding views have drawn ten- ants including current Yale New Haven Health CEO Christopher O'Connor. As part of Becker's commitment to environmentally friendly design, the complex was built with a hydrogen fuel cell, which hasn't been in operation for several years, Friedman said. He plans to spend $2.5 million to replace the original unit with a new system from Doosan in South Windsor, which makes its products in the state. "We're gonna install a new fuel cell, which will result in very significant energy savings for the building," Friedman said. Part of the building's appeal was its uniqueness in New Haven, Friedman said. Now the high-rise overlooks a cluster of new multifamily projects that have boosted street life and traffic at its main ground-floor retail tenant, Elm City Market. Due to the city's vibrancy, Fried- man didn't rule out future purchases in New Haven. "We look at everything that comes on the market in New Haven," Fried- man said. "New Haven has great prospects, long term." n Carol Lopez Horsford, owner and broker at New Haven-based Farnam Realty Group. Gideon Friedman, CEO of Beachwold Residential LLC.

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