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HARTFORDBUSINESS.COM | SEPTEMBER 2, 2024 7 DEAL WATCH SINGLE SOURCE DESIGN/BUILD EFFICIENT. QUALITY. COST-EFFECIVE. The company that builds and installs the critical systems in virtually every type of facility is the same company you can rely on to maintain them. For over 50 years, our clients have trusted us to provide sustainable, more efficient, greener facilities. Experts in: Design/Build, Pre-Construction, Service, LEED Capabilities 860.871.1111 Toll Free: 800.741.6367 nemsi.com MECHANICAL | ELECTRICAL | PLUMBING | SHEET METAL | BUILDING AUTOMATION | FACILITIES SERVICES License #'s: E1-0125666 S1-302974 P1-203519 F1-10498 SM1-192 MC-1134 Shipman & Goodwin sues downtown Hartford landlord facing foreclosure, arguing building's condition threatens the firm's ability to operate By Andrew Larson alarson@hartfordbusiness.com C onstitution Plaza's woes are growing. A lender seeking to foreclose on much of the downtown Hartford office complex could be getting closer to taking control of the property. Meanwhile, Shipman & Goodwin, among the most prominent law firms in Connecticut that occupies significant space in Constitution Plaza, has filed a lawsuit against its landlord, accusing the property owner of breaching its lease over numerous building problems that have gone unaddressed. Shipman said it has informed the landlord that the building's condition threatens the firm's ability to operate, including making it difficult for clients to access their offices. The firm's base rent for the office space — $2.8 million per year — is "an astonishing amount given the current conditions of the building," Shipman said in a revised complaint that was filed on April 11. Shipman & Goodwin, which has about 150 attorneys, leases 112,545 square feet of space on the fourth, 11th through 16th, and 18th through 20th floors of the tower at One Constitution Plaza. It also leases part of the lower level and third-floor rooftop terrace, court records said. According to the lawsuit, the landlord has failed to fulfill its obliga- tion to maintain the building, despite numerous requests for repairs. In January, Wilmington Trust and its special servicer LNR Partners LLC filed a foreclosure petition in Hartford Superior Court against Constitution Plaza Holding LLC, owner of signifi- cant chunks of the property. Wilmington is the lead holder of a $55 million commercial mortgage-backed security loan originally granted to Constitution Plaza Holding LLC in 2018. The loan was secured by 1, 10, 100, 250, 260, 280, 290 and 292 Constitu- tion Plaza in Hartford, according to the foreclosure filing. City assessing records for the properties indicate they contain hundreds-of-thousands Shipman & Goodwin's Hartford office is located at One Constitution Plaza. PHOTO | COSTAR of square feet of office, retail, garage and support space. 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. In February, Constitution Plaza Holding LLC, through an affiliated company, filed for Chapter 11 bank- ruptcy protection. Constitution Plaza Holding lists a Brooklyn, New York business address, and is controlled by Aaron Berger, also of New York. In June, Wilmington Trust and LNR Partners asked a Hartford Superior Court judge for a summary judgment in the foreclosure case, arguing the borrower "acknowledges that the mortgage debt has matured and … has no defenses or counterclaims in response to Plaintiff's foreclosure." In addition, Wilmington Trust argued the borrower agreed that it "shall not oppose foreclosure of the Mortgaged Property in this action." Snake in the elevator In terms of Shipman & Goodwin's complaint, the law firm said building problems include a stairwell in the parking garage that regularly floods and leaking overhead pipes. Also, a ceiling in the parking garage leaks, resulting in damage to the paint of parked vehicles by "fetid water," according to the suit. Mold is visible in the garage and one of the Continued on next page