Hartford Business Journal

HARTFORDBUSINESS.COM | MARCH 9, 2026 5 Deal Watch 545 Long Wharf Drive, in New Haven. Photo | CoStar Knights of Columbus sells remaining stake in New Haven office tower for $14M as occupancy nears 90% substantially lower vacancy than the broader market, despite a year-over-year increase. Cushman & Wakefield data show the CBD — which contains roughly 3.9 million square feet of office space — recorded a 9.9% vacancy rate, up from 7.9% a year earlier. The increase marked a reversal from 2024, when vacancy fell to its lowest level in several years. O'Brien said demand for high- er-quality space in New Haven remains resilient, particularly among tenants tied to Yale University, Yale New Haven Hospital and the region's life sciences sector. "There is serious buzz down here," O'Brien said. "There is a ton of culture in New Haven." Financial partner The Knights of Columbus, a New Haven-based Catholic fraternal benefits and insurance organization, purchased the Long Wharf Drive property for $12.81 million in 2020, shortly after the previous owner lost it to foreclosure. The organization initially acquired the building to support its information tech- nology operations, but later determined it required less space following shifts in workplace usage. The Knights of Columbus continues to occupy approximately 32,000 square feet, or one full floor in the building. As part of the sale, the organization also provided a $20.9 million loan to Water Street Properties, which Taylor said supported both the ownership buyout and capital improvements. "The Knights have been a fantastic partner through this whole process, really a great organization to work with," Taylor said. By Michael Puffer mpuffer@hartfordbusiness.com A real estate investment group has completed its purchase of a New Haven waterfront office tower, buying out its partner for $14 million and taking full control of the property. The Knights of Columbus in late January sold its remaining stake in the 261,465-square-foot, nine-story office building at 545 Long Wharf Drive to Water Street Properties, a New Haven- based real estate investment company. Water Street had acquired a stake in the 1988-vintage building in late 2024 for an undisclosed sum and relocated its headquarters from Guilford to the Long Wharf address. That agreement gave the company the right to eventu- ally purchase the remaining interest in the property. Todd Taylor, managing partner of Water Street Properties, said the $14 million transaction recorded in January reflects only the latest purchase and does not include the cost of the compa- ny's initial ownership stake. Taylor said the firm viewed the prop- erty as an attractive investment, citing its waterfront location, structured parking and proximity to Interstates 91 and 95. Working with the Knights of Columbus, Water Street has undertaken upgrades to bathrooms, the lobby, conference rooms and other common areas. A penthouse executive lounge is expected to be completed within about a month, and an upscale steakhouse is planned for the ground floor late this year or early next year, Taylor said. "We're an experienced management company, and we have a strategy to position this as a premier office building," Taylor said. Leasing gains The building's occupancy has climbed from roughly 40% when Water Street became involved to about 89%, Taylor said. That figure includes signed leases for tenants scheduled to move in later this year following fit-out work. He said occupancy could reach 95% by year-end. Taylor attributed the leasing gains to more active property management and the firm's ability to complete tenant improvements through its in-house construction arm, Water Street Construction. Taylor also credited Evan O'Brien, managing director at Cushman & Wakefield, who marketed the prop- erty and represented the Knights of Columbus in the deal while recruiting prospective tenants. New tenants added over the past 14 months include Celldex Therapeutics, which leased about 40,000 square feet; law firm Kennedy, Johnson, Schwab & Roberge; and construction, devel- opment and property management company Fusco Corp. Ameriprise and Morgan Stanley Financial Advisors have also extended their leases. "It's one of the best stories in New Haven from a Class A office stand- point," O'Brien said of the Long Wharf Drive property. The building's leasing gains come amid mixed conditions in the broader Greater New Haven office market. Overall vacancy across Greater New Haven's 11.2 million square feet of office space ended 2025 at 17.2%, up from 16.5% at the end of 2024, according to Cushman & Wakefield. The market also recorded negative net absorption for the year, reflecting continued tenant downsizing and cautious leasing activity. Average asking rents have remained relatively stable, edging down to $23.04 per square foot. Within New Haven, the central business district continued to post GREATER NEW HAVEN 2025 OFFICE MARKET SNAPSHOT GREATER NEW HAVEN NEW HAVEN CENTRAL OFFICE MARKET BUSINESS DISTRICT INVENTORY 11.2M sq. ft. 3.9M sq. ft. OVERALL VACANCY RATE 17.2% 9.9% NET ABSORPTION -141,952 sq. ft. -65,022 sq. ft. TOTAL LEASING ACTIVITY 223,442 sq. ft. 41,882 sq. ft. OVERALL AVG. ASKING RENT $23.04 $26.39 Source: Cushman & Wakefield

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