Hartford Business Journal

6 HARTFORDBUSINESS.COM | MAY 18, 2026 Developer Carlos Mouta pictured inside the former Whitney Manufacturing Co. building in Hartford, at 237 Hamilton St. HBJ Photo | Steve Laschever Debt Pressure Hartford factory conversion seeks reset amid financing challenges In April, the city and CRDA agreed to forgive $277,000 in default interest tied to loans supporting Shelbourne Global Solutions' redevelopment of the former Fuller Brush factory in Hartford's North End. That project is converting part of the industrial complex into 155 apartments. Shelbourne had fallen behind on loan payments amid rising construc- tion costs but later brought the debt current after injecting additional equity into the project. Olusegun "Shay" Ajayi, Hartford's chief operating officer, confirmed the city could consider waiving default interest penalties if Mouta resumes baseline loan payments. "We continue to have discussions with the developer on a redesign to ensure that property doesn't sit there vacant and to ensure there is continued vibrancy and activity in the Parkville neighborhood," Ajayi said. "It's important that we do that because of what it means for the community." Ajayi said he remains optimistic because of Mouta's track record completing projects that have helped revive the Parkville neighborhood. "Five or 10 years from now, we don't want these large, empty buildings in the city in condensed areas," Ajayi said. "If that requires us reevaluating our subsidy levels to ensure the deal pencils out, we are supportive." By Michael Puffer mpuffer@hartfordbusiness.com T he former century-old Whitney Manufacturing Co. building in Hartford has long stood as one of the massive, vacant mill structures visible to motorists passing through the city's Parkville neighborhood on Interstate 84. For years, prominent developer Carlos Mouta has pushed to breathe new life into the 236,000-square-foot, five-story property at 237 Hamilton St., continuing a decades-long effort to redevelop dormant properties across Parkville. But the project — envisioned as a mixed-use redevelopment with 235 apartments and 45,000 square feet of commercial space — has stalled amid financing challenges, rising costs and mounting debt. Delinquent property taxes and growing default interest on an overdue $4 million city-backed loan have added pressure to the project, which public officials still view as key to Parkville's continued revival. Even so, Mouta said he remains confident the redevelopment can move forward with a redesigned plan and continued support from city leaders, who have signaled a willing- ness to provide relief. "The project is going to go forward," Mouta said. "It's just paused now." A record of impact Mouta's work in Parkville includes a revitalized retail center, the conver- sion of a 225,000-square-foot former tire factory into apartments, retail, restaurants and office space, and the creation of Parkville Market. While not his largest redevelopment, Parkville Market has become Mouta's most visible success. The $5 million transformation of a 20,000-square- foot former lumber warehouse into a multicultural food hall and bar desti- nation opened in 2020 and has since expanded with an events space. Mouta paid $3.2 million for the former Whitney Manufacturing building in 2019. Soon after, he began seeking public financing support for a large-scale redevelopment. The Capital Region Development Authority (CRDA) approved a $4 million low-interest loan from a City of Hartford fund in 2022 to finance environmental cleanup work. In 2023, CRDA approved an additional $8.5 million financing commitment toward renovation costs. Mouta has drawn down the cleanup loan, but cannot access the larger financing package until the remainder of the project's capital stack is secured. However, he has struggled to secure that remaining financing, prompting multiple revisions to the redevelopment plans. Mouta in late 2021 originally outlined a $72.8 million proposal that included 189 apartments, 80,000 square feet of startup-oriented commercial space, video conferencing rooms, a fitness center, beer garden and small grocery store. By March 2023, projected costs had climbed to $91.64 million, while plans expanded to include 235 apartments and 45,000 square feet of commercial space. As recently as early 2025, Mouta was still working to close the project's financing gap. CRDA agreed to defer interest payments on the $4 million loan for nine months. That grace period has since expired. As of April, Mouta owed roughly $70,000 in missed loan payments to CRDA, along with $144,097 in delinquent property taxes tied to the Hamilton Street property. Under the original loan terms, the 3% interest rate required monthly payments of about $10,000. The rate increased to 7% in January after the loan entered default. Mouta said he is again redesigning the project, including reducing the number of apartments, to lower costs and attract new financing sources. He is also considering converting part of the building into small indus- trial rental spaces aimed at trades- people and small businesses. In addition, Mouta said he is discussing a potential partnership with a developer experienced in income-restricted housing projects that qualify for state subsidies. Potential workout Despite the project's financial troubles, city and CRDA officials say they remain committed to helping move the redevelopment forward and have previously waived default interest penalties to support major redevelopment efforts. Olusegun "Shay" Ajayi Deal Watch

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