Hartford Business Journal

HARTFORDBUSINESS.COM | JUNE 24, 2024 31 POWER 25 | REAL ESTATE manufacturing building in Plainville, at 60 Johnson Ave. The property was purchased by Fifth Continental Properties LLC. Sentry also provided construction management to the CT Lottery, for its relocation from Rocky Hill to 15 Sterling Drive, in Wallingford. In terms of what's ahead for the rest of 2024, Duclos said demand for indus- trial space will be mooted compared to more recent years, while absorption will remain suppressed. Even still, lease rates will continue to rise, he said. Duclos is active in the region's real estate community. He has been on the boards of the Hartford Real Estate Finance Association and CT/Western Massachusetts chapter of the Society of Industrial and Office Realtors. Nicholas Morizio N icholas Morizio is a veteran commercial real estate broker in Greater Hart- ford, who largely focuses on the industrial market. He has been involved in several significant deals over the past year, including the $7.45 million sale of manufacturer Carling Technologies Inc.'s former 129,506-square-foot head- quarters in Plainville, at 60 Johnson Ave., to Fifth Continental Properties. He was also involved in the $4.6 million sale of "Metro Park North," at 1679 King St., in Enfield to Massa- chusetts-based developer Winstanley Enterprises, which plans to turn the undeveloped 133.6-acre site into an industrial building with more than 600,000 square feet of space. Morizio also helped broker signif- icant lease deals in Manchester, at 69 Pavilion Drive, to Clancy Reloca- tion & Logistics; and Norwich, at 40 Wisconsin Ave. Morizio said the industrial real estate market remains active with steady activity, particularly around build-to-suits and self-storage. The greatest challenge impacting the industrial market, he said, is finding land to develop new properties. "I believe the market will still stay strong with developing build-to-suits," Morizio said. Outside the industrial market, Morizio said a trend he's seeing is an increase in office-to-apartment conversions, and the shift of retail space to indoor recreational uses, like pickleball facilities. Aside from being a deal-maker, Morizio has been a leader in the industry, having been appointed a Counselor of Real Estate and past president of the CT chapter of the Society of Industrial & Office Real- tors. He is also in the UConn School of Business Hall of Fame. Joel Grieco J oel Grieco has seen a number of different cycles during his more than 30-year career in commer- cial real estate. An executive director in Cushman & Wakefield's Hartford office, he focuses mostly on the office market, which has struggled since the 2020 pandemic. In fact, according to his firm's first quarter market report, about 26.5% of office space in Greater Hartford is vacant, including over 36% of space in the Capital City's central business district. If the Hartford County office market were static over the next year, that would be a victory, Grieco said. What gives him some hope is that he's seeing employers and employees increasingly agree that an "in-person" work environment is more fun, collab- orative and produces better results for certain industries. "So, even though the hybrid model is here to stay, and any given company can occupy much less space than they used to, there is a conviction to establish a true office presence," Grieco said of current market trends. "In doing so, employers are looking for buildings that can provide the best amenities for their employees." Despite the slower activity, Grieco has been involved in some major sales and lease deals. He repre- sented Day Pitney in the law firm's new 41,000-square-foot lease at Goodwin Square in downtown Hart- ford, as well as Selective Insurance in its move from Glastonbury to State House Square in Hartford for 25,000 square feet of space. He's also representing the new owners of 175 Addison Road in Windsor, a 600,000-square-foot high- tech flex and office building that is getting new life from common area upgrades and amenity enhancements. Another challenge in the market, Grieco said, is that the costs to operate buildings and renovate space continues to increase. "This produces a double-whammy for landlords who have had to compete on rental rates and conces- sions, and are now faced with increased costs," he said. Christopher Arnold I t's no secret that multifamily development has been one of the most active commercial realty sectors in Connecticut, with numerous new projects being announced or coming online in recent years. A key multifamily financier has been Middletown-based Liberty Bank, whose efforts are led by Christopher Arnold, the mutual lender's senior vice president and department head of commercial real estate lending. According to Arnold, the $7.6 billion- asset Liberty Bank has or is financing the construction of numerous marquee multifamily projects, including: One Park in West Hartford; Kelson Row in Rocky Hill; Brainerd Place in Portland; Star Deluxe in Branford; The Beam in New London; Heights Crossing in Darien; Residences at Quarry Walk in Oxford; The Archway in North Haven; and 188 Lafayette St. in New Haven. Arnold joined Liberty Bank as head of commercial real estate lending in April 2008, and is responsible for a portfolio with assets in excess of $2.5 billion. His team specializes in the orig- ination of permanent and construction mortgages in Connecticut and western Massachusetts, in the typical range of $5 million to $75 million. Prior to joining Liberty Bank, Arnold spent 23 years at the former People's United Bank in Bridgeport, primarily in the role of commercial real estate group regional manager. Besides multifamily, Arnold — a UConn alum, who has been a featured speaker at numerous industry events — said he's seen a lot of activity in the distribution/logistics space. Recently, Arnold said he's also observed a pull-back from the competition, with numerous lenders sitting on the sidelines amid a high interest rate environment. "This often comes to light when we explore a potential loan partic- ipation and receive feedback that options are limited right now," he said. "Challenges most often cited in the industry include concerns about high cost of funds and a high loan-to-deposit ratio." Multifamily and industrial continue to be preferred asset types, he said, and attract the most competition by lenders. Chris Ostop C hris Ostop is another top broker in Hartford, who is also making his mark in New Haven. He's a managing director in JLL's Hartford office, responsible for local and regional tenant representation, consulting, agency leasing, and investment sales for office and industrial properties. He serves as a leasing broker for major downtown buildings, including City Place I and One State Street, where law firm Robinson+Cole is relocating. He's also a leasing broker for Blue Back Square in West Hartford, and is involved in many office and life science projects in greater New Haven, including Square 10, a massive mixed-use redevelopment of the former New Haven Coliseum site. Ostop and JLL have been part of some of the largest real estate transactions in Hartford over the years, including selling, on two sepa- rate occasions, City Place I, the city's largest office tower. City Place last traded hands in 2015 when it was purchased by Boston real estate investment firm Paradigm Properties for $113.3 million. JLL now represents Paradigm as the property's broker. A few years ago, Ostop turned some of his attention to the New Haven market, where activity from Yale University, Yale New Haven Health and Yale Ventures continues to spur demand for lab space, housing and other new development. Ostop said activity in the traditional office and life sciences sector has picked up in the last 60 days. At the same time, hybrid work schedules are taking hold as more companies enforce their in-person work policies. The three- to four-day in-office work requirement "is settling in as the new normal," he said. He predicts more office buildings will be converted to apartments in downtown Hartford, which will help the city grow its residential base.

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