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6 HARTFORDBUSINESS.COM | MARCH 20, 2023 Deal Watch Robert Motley, senior director with Cushman & Wakefield at the Campus at Greenhill property in Wallingford. HBJ PHOTO | MIKE PUFFER On The Block Up for auction, nearly 300,000-sq.-ft. Wallingford office building reflects industry struggles By Michael Puffer mpuffer@hartfordbusiness.com C onstruction of a large-scale Wallingford headquarters for Mortgage Lenders Network ground to a halt in 2007, leaving a massive building shell next to Inter- state 91 as an imposing monument to the collapse of the subprime lending industry. The project on 105 acres at 108 Leigus Road kicked off in 2006, then faltered a year later when subprime mortgage lender MLN failed. Then in 2010, developers signed health insurer Anthem Blue Cross Blue Shield to a 10-year lease for three quarters of the 288,795-square- foot, state-of-the-art office building that was completed in 2012. Today, however, the Campus at Greenhill reflects another challenging business trend: the rapid decline of the office market in the wake of the COVID-19 pandemic. Anthem has shrunk its presence to 48,138 square feet. Other tenants have come, even grown in the building, but it's still 60% vacant. The mortgage holder that foreclosed on the building in 2019 has put it up for auction. Wallingford's assessor values the building at $18.1 million and the surrounding land — currently held in a lease ending in 2112 — at $10.8 million. The building and lease are owned by a limited liability company controlled by Miami-based real estate investment firm Rialto Capital Management. The starting bid for the auction that begins April 3 is $2 million. The property is being sold on auction website Ten-X. Rialto declined to comment about the pending sale. Anthem Blue Cross Blue Shield, in a statement, said its embrace of a more flexible work model has driven the company's office space downsizing. "We consistently assess our office space needs to align with our hybrid work model, which allows associates to leverage the office based on their work needs with the flexibility of working remotely," the company said. "We recently redesigned our space in Wallingford with new individual work- spaces, collaborative meeting and training spaces to create improved work environments for our employees and enhance our strong culture." Upbeat prospects Robert Motley, a senior director with brokerage firm Cushman & Wakefield, said he's confident the property will sell well above the initial bidding price. The modern, LEED-certified building has a below- floor heating and cooling system that increases comfort and reduces expenses, he noted. It offers a fitness center, cafeteria and convenient access to I-91, all on a handsome suburban campus with walking paths. Motley said a site study has shown the property can also support construction of four new buildings, each at about 31,000 square feet. He suggests it's well suited for medical offices. "Between the shoreline and Waterbury and the surrounding communities, there is nothing like this out there," Motley said. "We expect, given the location, the quality of the building, its age and the quality of the tenants, we will have potential bidders from around the country." Motley, as of March 7, said Cushman & Wakefield had fielded more than 30 inquiries from potential buyers. In addition to Anthem, archi- FOR SALE CAMPUS AT GREENHILL 108 Leigus Road, Wallingford Type: Office Listing price: $2 million Auction date: April 3-5 Size: 288,795 square feet Current owner: Rialto Capital Management Broker contact: Robert Motley, Cushman & Wakefield; 860-616-1432, robert.motley@cushwake.com Year built: 2007 & 2012 Tenants: Anthem Blue Cross Blue Shield, Burns & McDonnell, Liberty Mutual, Sulzer Ltd.