Issue link: https://nebusinessmedia.uberflip.com/i/518124
2015 | Doing Business in Connecticut 113 universities. Among its clients are Foot Locker, Lindt, Walgreens, Wynn-Dixie and Chartwells. In 2012, Phase Zero teamed up with OPAL Real Estate Group and Penn Gaming to plan and develop the $880 million Spring- field Riverfront Gaming and Development proposal to revitalize Springfield's riverfront. Plans included a 230,000-square-foot gam- ing facility, multiple theaters, food and retail outlets, a hotel, a band shell, a marina, trans- portation improvements and a garage. How did a firm that began with three peo- ple accomplish so much in such a short time? "Relationships are a key ingredient in our firm's success. We run a strong network of in- dustry friendships and referrals." In the early days, "I met with a couple of like-minded professionals who were also starting their own businesses. We were able to help each other along." e company also invested very heavily in marketing — "money we didn't have" — and took part in events in Boston, New York and Hartford. "People would assume that we'd been in business for years," he said. For Wittmer, an Avon native who earned his Master's of Architecture from Carnegie Mellon in Pittsburgh and an MBA from the University of Hartford, every day is still an adventure. "We have some of the most exciting clients. We like to challenge them and they like to challenge us. A lot of our projects have to do with reducing the real estate footprint, so it's a lot of design- ing spaces that are doing more with less." In some cases, challenges include contaminated sites or flooding; with both the firm has had significant success with. As the projects continue to roll in, Phase Zero is expanding its own footprint. "We just took another 850 square feet of office space here in Simsbury, so we are definitely looking into expanding in this area. And we would probably look to open another office in New York, New Jersey or Pennsylvania at some point." In the meantime, he's enjoying the perks of living and working in Simsbury. "We have a lot of late night meetings, and it's great to be able to work three miles from the house. I also enjoy living in a small town where you're known by name at the local grocery store." And for his son, now 7, "the schools around here are fantastic." What would he change? Not a thing, he says. "It's been a fun ride." ❑ Over the past couple of years, CRDA has helped to finance proposed housing projects with millions of dollars in state funding through loans, contributions and equity stakes. "What we're trying to do is jumpstart the residential marketplace, initially in the downtown and then concentrically through the surrounding neigh- borhoods, to turn properties that had previously been used for commercial into residential," Freimuth said. "Our first project was 201 Ann. It was a synagogue, a Masonic home and a com- mercial property. Now it's being repositioned; its value is being recalibrated." And there are more to come. Currently, "we have about 700 units in construction, an- other 300 in the pipeline, and easily that many again in the early exploration stage through- out the downtown. I think we'll be doubling and hopefully tripling the population in the next few years." Freimuth said the new UConn campus will provide a huge boost to the city, especially since many of the 2,300 students will be grad students, "who are generally more interested in living downtown, reinforcing the retail and res- taurant strategies. An 18-year-old drives in and drives home. e programs that are coming in — public affairs, social work, business — these usually attract older students who will commit to a year or two in the downtown core." CRDA's efforts extend beyond housing. "We've been working in Newington to clean up contaminated sites for development along the busway, and we've been doing capital upgrades to the XL Center ($35 million), the convention center ($1.3 million) and other properties we own," Freimuth said. e agency is currently weighing its options regarding a longer-term fix for the XL Center, with the most likely scenario being an acquisition of adjacent property and a $200 million to $250 million facility makeover. Offices Over the past two years, CRDA also has been overseeing the relocation of state offices from some 20 "leased and aging state-owned properties in and around Hartford." e state recently bought two buildings downtown. e first, 55 Farmington Avenue, was pur- chased from e Hartford Financial Services Group for $18 million and will be renovated at a cost of $19.5 million. About 1,000 state employees will relocate to the 12-story, 287,000-square-foot structure on Asylum Hill this year. e state also purchased the garage at 50 Farmington Avenue for parking. e second property, 450 Columbus Boulevard, a 575,000-square-foot Class A office tower, was purchased for $34.5 million and the roof, plaza and garage will be renovated at a cost of $62 million. Some 2,000 to 2,300 state em- ployees are slated to move to the two-building complex by early 2016. Over the next 20 years, the state ex- pects the moves to save about $100 million in leasing costs and maintenance. Freimuth said vacated state-owned office buildings — around Bushnell Park and on Capital Avenue, for example — will be renovated or converted to housing. He noted that the state office program has helped lower the downtown Class A commercial vacancy rate from 30 percent at the end of 2012 to 17 percent a year later. By the end of June 2014, the rate was down to 14.7 percent. In January 2015, it was announced that a collection of six buildings on Constitution Plaza had a potential buyer. e sale, to a New York investment group, includes the One and 100 office towers and low-rises 10, 248, 250 and 260 Constitution Plaza. At press time, Chris Ostop, executive vice president at Jones Lang Lasalle, said the deal was expected to close by mid-May. In April, CBRE-New England an- nounced that 100 Pearl Street, an 18-story, Class A, 281,000-square-foot building, had sold for $36.85 million. Segarra and Deller, who sit on the CRDA board and work closely with Freimuth, said they've been collaborating with the state on various development and infrastructure proj- ects, "not only on plan review and permitting, but also tax deals that would make it possible for these housing developments to happen as well as finding ways to leverage other comple- mentary projects." e mayor said in addition to improving downtown, the city is working to strengthen its neighborhoods and connector arteries like Albany, Franklin, Asylum and Farmington avenues, and Park Street. "ese corridors are lined with many businesses that have been taking a hit over the past few years. As we infuse the downtown with energy, we also want to nurture these areas by expediting streetscape repairs, working with merchants on their facades, and offering finan- cial and technical assistance." ❑ Capital city is making a comeback Wittmer > Continued from page 23 > Continued from page 25