Hartford Business Journal

HARTFORDBUSINESS.COM | APRIL 3, 2023 7 DEAL WATCH units on other vacant lots around the ballpark, but that effort has been put on hold as the city duels in court with another developer claiming those development rights. Salvatore said 225 units in "The Pennant" building are rented, and he expects full occupancy in about two months. His tenants include a mix of all ages, with about 75% coming from outside Hartford, he said. "Which is great, because it's increasing the population in the city, which creates vibrancy," Salvatore said. "So, we are really excited about that, as opposed to people just moving from building to building within Hartford." Bruce Becker, the eco-friendly developer who led the $84.5 million conversion of the former Bank of America tower at 777 Main St. into 285 apartments, said his Hartford units don't stay vacant very long; they are currently 98% occupied, according to CRDA. "It seems fewer and fewer people want to leave," Becker said. "(The apartments) are in high demand right now, which is great." Becker said he'd love to see a supermarket added to downtown, along with additional retail and restaurant options. "The thing that is surprising is people do not realize how attractive downtown Hartford is, retailers don't appreciate it," Becker said. "A lot of our tenants are going to West Hartford for high-end grocery stores and restau- rants when the market is in Hartford." 777 Main saw a dramatic drop in occupancy at the outset of the COVID-19 pandemic and then rapidly rebounded, noted property manager Stacey Griffeth. That's a dynamic shared by many of the newer and nicer downtown apartment buildings, she said. 777 Main accommodates a diverse mix of tenants, including students, but the age range has skewed toward a younger demographic since the COVID-19 rebound, Griffeth noted. Pre-pandemic, most residents were professionals in their 40s or 50s, she said. "Now we have a much more millen- nial demographic, our age group is primarily 25 to 35, according to our survey," Griffeth said. "Most folks are coming in for new positions, lots of job offers in the area." Sara Fette, 30, moved into 777 Main a little more than a year ago. It was close to her marketing job in Glastonbury, and now even closer to her new job with Hartford health insurer Aetna. The move also got her out of her parents' Watertown home, which, she said, "is surrounded by farms." "I like the closeness of everything," Fette said. "Everything is in proximity. I like the hustle and bustle of the city. I like that there are so many busi- nesses here." Fellow 777 Main resident Jeffery Hoffman, 57, moved into the building in January. He has worked in and around Hartford as an IT professional for various companies for decades. Hoffman, who moved from New Britain, said he was sold on the build- ing's historic charm, amenities and energy-saving and environmentally friendly technologies. Hoffman works for a New Jersey- based IT company servicing compa- nies in New York. So, he also enjoys the fact the city's train station is a short walk away. The building is also pet friendly. Hoffman has a 12-year-old Bichon Frise-poodle mix named Coco. Hoffman said he has followed Hartford's development efforts over the decades and believes adding new apartments is a winning strategy. "I think Hartford will attract profes- sionals like myself and young profes- sionals if they keep" adding more apartments, Hoffman said. Lexington Partners Vice President Kevin Kenny in a communal cooking space at 196 Trumbull St. in Hartford. HBJ PHOTO | MICHAEL PUFFER Hartford Chamber chair Kothari sells four Hartford properties for $25.6M By Michael Puffer mpuffer@hartfordbusiness.com M ax Kothari, chair of the Hartford Chamber of Commerce board of direc- tors, recently sold four properties in the city for $25.56 million, including two hosting his Star Hardware and Express Kitchens businesses. Even so, Kothari said he has no plans to move the businesses or cut their roughly 120 employees. Quite the opposite, he said. The deals – which were logged by the city on Jan. 25 – were initiated as part of a sales-leaseback agreement. A portion of the proceeds was used to fund Express Kitchens' recent purchase of New Jersey- based Direct Cabinet Sales. That deal also came with two other businesses: New Jersey-based Seifer Kitchens and Brooklyn-based Golden Reiss Kitchens. The acquisition added five showrooms in New York and New Jersey to Express Kitchens' existing network of 12 showrooms in Connecticut and Massachusetts. It also added a 165,000-square-foot manufacturing plant in Dayton, New Jersey, Kothari said. With facilities in New Jersey, Hart- ford and India, Express Kitchens now has a total of 600,000 square feet of manufacturing and distribution space, according to the company. As part of the recent Hartford prop- erty sales, Express Kitchens and Star Hardware signed 20-year leases for the same properties. The leases offer options for two, 10-year renewals. The deal allows Express Kitchens to expand, which could mean extra jobs in Hartford, Kothari said. "This is just a sale-leaseback because of our expansion," Kothari said. "We have committed to Hart- ford for the long term. Otherwise, we wouldn't sign a long-term lease. We believe in Hartford, and we strongly believe in the people of our community." Kothari's properties were bought by New Jersey-based Essential Prop- erties Realty Trust Inc., a publicly Max Kothari is the founder and CEO of Hartford-based Express Kitchens. HBJ FILE PHOTO traded real estate company. Essential Properties has a portfolio of 1,653 properties across 48 states, according to its website. Attempts to reach a company representative were unsuccessful. The Hartford property sales include: • 231 Weston St. – A 5.4-acre prop- erty hosting a 120,295-square-foot warehouse built in 1970. Head- quarters to Express Kitchens, this property sold for $12.78 million. • 2895 Main St. – It includes a 7-acre property hosting a 32,366-square- foot brick warehouse built in 1940; a 1,575-square-foot office building built in 1940; and a 1,475-square- foot office built around 1985. This property sold for $5.7 million. • 2995 Main St. – A 2.5-acre prop- erty with a 15,921-square-foot retail building built around 1950 that hosts Star Hardware and Star Chinese Restaurant. It sold for $1.69 million. • 3080 Main St. – A 1.7-acre prop- erty hosting a 50,758-square-foot brick office and warehouse building completed around 1950. This property sold for $5.39 million.

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