Hartford Business Journal

HARTFORDBUSINESS.COM | JANUARY 23, 2023 19 FOCUS: Commercial Real Estate Jack and Donna Sennott, of Simsbury, paid $1.25 million in December for the century-old, 24,000-square-foot office and retail building at 100 Allyn St., (shown right). HBJ PHOTO | MICHAEL PUFFER Making A Bet Once a nightlife hot spot, downtown Hartford's Allyn Street corridor in search of a rebirth By Michael Puffer mpuffer@hartfordbusiness.com O nce a hot spot for nightlife, the roughly six-block Allyn Street corridor west of downtown Hartford's XL Center was already trying to regain its footing before the pandemic struck. Now, with the federal government eyeing a roughly 2-acre parking lot in the center of the area for a new $335-million courthouse, and upgrades underway to get more activity into the XL Center, there is fresh hope for this struggling stretch of downtown Hartford. The Capital Region Development Authority (CRDA) has launched $15 million in renovations to the XL Center, including the creation of a new sports betting lounge on the building's western face. CRDA is also negotiating with Los-Angeles-based sports enter- tainment company Oak View Group for a deal that could result in $100 million in additional renovations and upgrades to the aging arena, unlocking the potential for more events and the crowds that come with them. Some investors see building momentum around Allyn Street and are buying in. Others, less bullish, are moving on. The challenges A decade ago, Massachusetts developer Dakota Partners spent nearly $15 million renovating an 1884-vintage, five-story building at 179 Allyn St., into 63 apartments with first-floor retail. CRDA supported Dakota's project with a $3.25-million low-interest loan and $3.25-million equity investment. Dakota put the building up for sale in fall 2022, with one principal remarking the area hadn't popped to life as he expected. "That happens to be a location that is not as we were hoping it would be," Roberto Arista, a principal with Dakota, said in September. "The bet was this was an area that would turn around. It hasn't really." Arista, in December, said 179 Allyn's apartment occupancy is above 90%, but the rents the building is able to command haven't climbed in step with rising costs. Hugh Russell, who runs the Caribbean-themed restaurant The Russell on the first floor of 179 Allyn, described the area as "a ghost town." Russell's downtown Hartford restaurant — one of three greater Hartford locations — is kept alive by supportive regulars, but only opens for dinner Wednesday through Saturday. Even so, Russell said he plans to hold onto the Allyn Street location, anticipating brighter days. He expects a boost from the new sports betting facility, even though it will offer food and beverages. The more dining and entertainment options, the better, Russell said, adding he eventually plans to open for Sunday brunch. Government investment Completing the sports betting facility continues to be a challenge. It was originally targeted to debut at the start of the fall 2022 football season, but supply chain problems delayed the opening into the spring. CRDA Executive Director Michael Freimuth said supply chain delays and shortages continue to be a problem and the hope is now to open in late spring. There is no formal revitalization strategy drafted for the Allyn Street corridor, Freimuth said, but it's a priority area with natural advantages. It enjoys charming 19th-century archi- tecture; easy access to highways and public transportation; and is just a few minutes' walk to the heart of the Class A office towers in downtown Hartford. Developers seeking assistance to build in the Allyn Street corridor will find a receptive ear, Freimuth said. CRDA has funded seven projects along and around Allyn Street over the past decade, yielding 255 new apartments in the area. "We've prioritized it for housing investment or any kind of mixed-use investment because we see it as a critical corridor that runs from the XL Center to the train station," Freimuth said. "It's really been rebooting what had been the old entertain- ment district, which had fallen on hard times." New investors Several new investors arrived on or near Allyn Street in 2022. In December, New York real estate investment company Greyhill Group paid $5.9 million for the 48-unit Union Place apartment building opposite Union Station. Greyhill Managing Partner Moshe Bloorin described the property as holding "tremendous promise," and said investment will be made to create a product appealing to Hartford's young and energetic working tenant base. Around the same time, Simsbury couple Jack and Donna Sennott paid $1.25 million for a century-old office building at 100 Allyn St. Its first floor hosts the Aladdin Halal and Agave Grill restaurants. The upper floors of the four-story, 24,000-square-foot building host office tenants that include Hartford Business Journal. Jack Sennott, a former insurance executive, said he is encouraged by a string of high-profile developments across the city, including a new 270-unit apartment building near Dunkin' Donuts Park and advancing plans for a new neighborhood south of Bushnell Park, among others. Sennott's building is directly across Ann Uccello Street from the western edge of the XL Center, where the sports betting lounge is under construction. On the opposite side of Sennott's office property is the site being eyed for a federal courthouse. "COVID, obviously, was heavily impactful for (Hartford) and we are going to have to deal with the mean- ingful Class A office space vacancy rate, and that will take some time to work through," Sennott said. "That doesn't stop the fact that the level of residents is increasing and Hartford punches above its weight consider- ably culturally, whether its Hartford Stage, the Wadsworth (Atheneum), the symphony, the Mark Twain House — we have a lot to offer. Ultimately, that's what good communities are built around." A new sports bar and grill — Exit Hartford — will shortly join the lineup on Allyn Street. Amin Khan said he and a partner hope to open at 179 Allyn St., in a space next to The Russell, in late March. His plan is to open from 11 a.m. to midnight daily, with a full bar and kitchen serving American fare. Khan said he already owns two

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