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18 HARTFORDBUSINESS.COM | MARCH 18, 2024 Major downtown Hartford office complex faces foreclosure The Constitution Plaza office complex in downtown Hartford. PHOTO | COSTAR representing Constitution Plaza Holding LLC, declined comment. Constitution Plaza Holding LLC failed to repay the loan in full by its May 6, 2023 maturity date, according to the suit. A letter outlining the default and demanding the $51.45 million unpaid principal balance was sent July 17, 2023. This is the second major down- town Hartford office property to face foreclosure. The Stilts Building, at 20 Church St., has been in foreclo- sure since 2022. Refinancing office building loans has been a challenge amid a high interest rate environment, and in a post-pandemic world where vacancy rates have risen as employers embrace more flexible work models, including remote work, that require less office space. By Michael Puffer mpuffer@hartfordbusiness.com A lender is seeking to fore- close on much of the Constitution Plaza office complex in downtown Hartford. In January, Wilmington Trust and its special servicer LNR Partners LLC filed a foreclosure petition in Hartford Superior Court against Constitution Plaza Holding LLC. Wilmington is the lead holder of a $55 million commercial mort- gage-backed security loan origi- nally granted to Constitution Plaza Holding LLC in 2018. The loan was secured by 1, 10, 100, 250, 260, 280, 290 and 292 Constitution Plaza in Hartford, according to the foreclosure filing. City assessing records for the properties are unclear but indicate a complex mixing hundreds-of- thousands of square feet of office, retail, garage and support space. The properties at 1, 10 and 100 Constitution Plaza are listed to Constitution Plaza Holding LLC, of Monsey, New York. The property at 200 Constitution Plaza is listed to a different LLC that shares the same Monsey, New York address, as well as a common principal in Aaron Berger. Attorney Stuart C. Johnson, multifamily housing. It's possible downtown office towers might have to come down as well, he said. Gagnon predicts additional tax appeals will go against the city, requiring political leaders to redistribute the city tax burden against other property types. Citing the Boston-focused study, Gagnon noted Hartford is also in line for a big tax-revenue hit. There will be a need for a signifi- cant state and federal investment to repurpose Hartford office buildings, in order to consolidate tenants into what office space remains, he said. "It's not going to be fun over the next couple of years to see those towers languish," Gagnon said. "Some will get converted. In the end, you will need to have inventory constriction." Even so, Hartford's mayor expressed general optimism about the improving state of Hartford's downtown. Arulampalam said more workers are returning to the office. He pointed to the recent ribbon cutting for Global Atlantic Financial Group's 11,500-square-foot expan- sion in the Gold Building as an example of forward momentum. Construction of thousands of new apartments are also underway in downtown Hartford, Arulampalam said. Reset Continued from page 17 GENERAL CONTRACTING • CONSTRUCTION MANAGEMENT • DESIGN BUILD PARTNER 21 DEMING ROAD, BERLIN, CT 06037 • (860) 610-1093 • WWW.OLSENCS.COM NEW CONSTRUCTION • TENANT FIT OUT • CRITICAL INFRASTRUCTURE • HEALTHCARE