Hartford Business Journal

HARTFORDBUSINESS.COM | APRIL 17, 2023 7 DEAL WATCH rents luxury cottages starting at $799 per weeknight during the off season; daily rates jump to $1,599 for weekend nights during the September and October peak foliage season, according to its website. The 35-room Mayflower Inn in Washington costs $520 to $708 for a weekday night stay in mid-May, in addition to a $40-per-night resort charge, according to its website. The 12-room Litchfield Inn on Bantam Road has more affordable rates — $236 to $289 per weeknight in May — but fills up quickly. "There are bed and breakfasts, but you really have to search," Ryan said. "If you have a larger party, it's really kind of hard to find a place. There is no question there should be more places that could accommodate a number of people." Patrick Kenny said he anticipates rooms will rent somewhere between $200 to $300 during off-season months, and $400 to $450 during peak season. Unique offering Provincetown, Massachu- setts-based Salt Hotels will have a 10% stake in the courthouse redevel- opment and manage the day-to-day functions of the restaurant and hotel – neither of which yet have a name. Salt currently operates boutique hotels in Provincetown, Nantucket, Miami Beach, Minneapolis, Los Angeles and Mexico. David Bowd, who co-founded and owns Salt Hotels with Kevin O'Shea, anticipates opening in late 2024 or early 2025. O'Shea said Salt is still working on concepts for the restaurant, which will be accessible to the public. Special attention will be paid to complement, rather than compete with, existing eateries, he said. The courthouse represents the unique and niche offering Salt Hotels prizes for its boutique destinations, O'Shea said. "Obviously, this building is really iconic and just an incredible piece of architecture," O'Shea said. "As a courthouse, this building was open to the public but not necessarily a place you would want to be in. I think this is such a wonderful opportunity as a hotel to be able to invite people in and have them experience this incredible piece of architecture in the center of Litchfield." A converted rail yard, former inn and old Victorian are being transformed into a new hospitality collection in Kent By Michael Puffer mpuffer@hartfordbusiness.com A bunkhouse, station master's cottage and former baggage car that served a rail line passing through the town of Kent's retail center are being turned into short-term rentals for visitors to this peaceful corner of the Litchfield hills. The three small structures co-lo- cated on the Kent Station property had most recently served as art galleries and retail shops. Soon, they will be rented out as cottages for $500 to $1,000 a night, aimed at tourists visiting the scenic commu- nity or three nearby exclusive boarding schools. Formally known as the "Garden Cottages," they are one of three separate hospitality venues in Kent's town center being developed into "The Kent Collection" by John and Lulu McPhee. The couple for years has enjoyed the tranquility of Litchfield's wooded hills from their weekend home in New Milford. During the pandemic, they watched as local inns were bought and converted into private residences by a small wave of newcomers. "So, there was an increase in demand and a decrease in supply, which basic economics would tell you is a good thing for opportunities like this," said John McPhee, who is CEO of New York-based upscale furnish- ings and decor retailer Chilewich. McPhee said the couple is spending "multiple millions" on their new luxury boutique lodging investment. It began with their March 2021 purchase of the Kent Station property for $450,000. That's being converted into the Garden Cottages, which will debut in the coming weeks. Rates will range from $500 to $550 nightly for a stay in "The Train Car," to $950 to $1,000 for the "Bunk House." Next, the McPhees in October 2021 bought an 1890-vintage Victorian in Kent center. The five-room North Main Street property — branded "The Victo- rian" — was fully renovated last year and opened in January, with rates running from $350 to $775 nightly. The couple paid $1.16 million for the Victorian, but the purchase price included a neighboring eight-unit apartment building that's not part of the Kent Collection. Finally, in April 2022, the McPhees paid $1.2 million for the former Star- buck Inn, also on North Main Street. That's being converted into the seven- suite "Firefly Inn," which is expected to debut in early June, with rates ranging from $325 to $650 nightly. "We bought one little property," John McPhee said. "Then another became available, and we were like: 'Ok, we'll do that.' Then the third one came up, and we were like: 'If we are going to be in this, we may as well really be in it.' Within a relatively short period of time, we acquired three fairly unique properties, all very central to the town of Kent." Lulu McPhee has headed up the near-complete gutting, retrofitting and furnishing of the buildings. She's salvaged much of the antique elements and exercised tasteful artistic flair to create spaces that range from crisp and elegant rooms in The Victorian, to campy and fun spaces in the Garden Cottages. The McPhee's experience with rental properties goes back to their days as students at Santa Clara University, where John bought multiple houses around the campus for student living. They still own retail property in California and had been looking for investment opportunities in Litchfield County. "There is a real need for (hospitality properties) up in this area," Lulu McPhee said. "I think this area has been a little bit off the radar, which those of us who live in this area love, but there is a lot here. I think it is so charming here, very much in tune with nature. It has been underappre- ciated, I think." Lulu McPhee, co-owner of the new Kent Collection, stands inside a former rail baggage car being converted into a short-term rental cottage in the quaint center of Kent. HBJ PHOTO | MICHAEL PUFFER Developers pivot on big demand for smaller apartments By Hanna Snyder Gambini hgambini@hartfordbusiness.com S everal developers working on residential or mixed-use projects are scrapping plans for larger apartments in favor of studios and one-bedroom units — a pivot based on fluctuating market demands, they said. Since the start of the year, land use boards in Windsor and Berlin have received revised site plan applications from developers who are changing the number of residential units and either reducing or eliminating larger, two-bedroom apartments. Developer Greg Vaca in February revamped plans for a mixed-use project called the Windsor Center Plaza along Broad Street in Windsor. The changes included acquiring more land, adding another residential building and making all 106 apart- ments studio or one-bedroom units. Original plans called for 96 apart- ments, including some two-bedrooms. In Berlin, developers of the new Steele Center project have also revamped plans for one of their build- ings at 55 Steele Blvd., along Farm- ington Avenue, changing it from four stories high to three, with 50 market- rate apartments now instead of 60. Original plans called for 42 one-bedroom units and 18 two-bed- rooms. New plans include 34 one-bedroom, five studios and just 11 two-bedroom apartments. Steele Center developers Mark Lovely and Tony Valenti of South- ington-based Lovely Development said "the market is definitely talking to us, and it wants to see more one-bedrooms and studios." The primary reason for the pivot

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