Hartford Business Journal

6 Hartford Business Journal • July 18, 2016 www.HartfordBusiness.com BY THE NUMBERS 168 The number of apartment units slated for a $58 million mixed-use development in New Britain. 43rd Connecticut's business climate ranking out of the 50 U.S. states, according to a new CNBC analysis. $400 The monthly energy costs — including electricity prices, and the cost of natural gas, home heating oil and gasoline — for the average Connecticut consumer, according to WalletHub. $188M The funds approved by the State Bond Commission for various development projects around the state, including $3.5 million for XL Center renovations. TOP 5 MOST READ on HartfordBusiness.com ■ NB selects developer for $58M mixed use project ■ Bond commission to vote on $188.1M in spending ■ Hartford Foundation announces $1M in support for nonprofits ■ Design changes for Glastonbury's Tannery Apts. ■ Few insurers willing to join crumbling foundation fund STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW ECONOMY & LABOR CNBC ranks CT's business climate in bottom 10 A new nationwide survey by CNBC shows Connecticut is ranked eighth worst for its business environment. The state is particularly hurt by low scores for its costs of doing business and living as well as infrastructure. The overall 43rd place ranking is a big drop from last year, when the state's business climate was ranked 33rd in the nation. The survey, conducted by the television business network CNBC, said Connecticut is ranked 47th for both cost of doing business and infrastructure, and 46th for its cost of living. The state's best ranking comes in workforce and education: both in the 18th spot. The workforce ranking is based on the education level of the workforce, the number of available employees and the state's demonstrated ability to retain college-educated workers. Utah was ranked the best state overall for doing business, while Rhode Island was ranked last. REAL ESTATE Hartford's State House Square debt in 'workout' Downtown Hartford's State House Square office building is nearing a modi- fication of its $87.55 million mortgage that would extend its maturity to early 2017, a commercial real-estate loan tracker says. Meantime, lead tenant Travelers Insurance has told its landlord of its plan to shrink its footprint sometime next year in the complex at 10-90 State House Square, across from Constitution Plaza. According to Trepp LLC, its review of State House Square mortgage docu- ments on file indicate the loan landed in "special servicing'' in April as a can- didate for a "loan workout'' while its unspecified monthly debt payments were still current. The loan has since fallen at least one month in arrears during June and July, Trepp data shows. But a new loan package, with a "balloon-payment'' feature, is expected to close later in July that will push the loan's maturity to next February, Trepp reported. State House Square's owners only had seven months left to pay on their 10-year loan. Design changes for Glastonbury's Tannery apts. The continuing conversion of a former Glastonbury tanning mill into 250 lux- ury apartments has undergone a redesign that more fully embraces the mill's historic significance to the community, its developer says. Martin J. Kenny, a Glastonbury native who is a principal of Hartford residential landlord-developer Lexington Partners LLC, unveiled the final design enhance- ments and improvements last week for The Tannery (formerly Flanagan's Landing). The original, existing steel beam structure at the Tannery mill buildings' en- trance has been saved and will be refurbished as a historic industrial element of the final project design, Kenny said. Corrugated metal originally on the mill buildings that date to the early 1800s and typically found on buildings of its era, is proposed for the roofing. The reuse of the mill buildings intentionally maintains historic features by keeping the brick facade of the four-story mill building intact. Insurer Principal buys Avon retail plaza Avon's Shops at Nod Brook has been sold to Iowa insurer Principal Financial Group and a partner who paid $29 million for the retail plaza on West Main Street/Route 44. The joint venture between Principal Real Estate Investors and Boston's The Wilder Cos., acquired the 99,758-square-foot shopping center at 315 W. Main St. from seller Midwood Investment and Development. According to seller's broker Holliday Fenoglio Fowler L.P. (HFF), the purchase financing included a $16.25 million five-year, fixed-rate mortgage from an un- identified insurance company. Shops at Nod Brook's tenants include The Fresh Market, Marshall's, Michael's Arts & Crafts, Top Nail, Music & Arts, Lane Bryant and Great Clips. The center is about 92 percent occupied, HFF said. MANUFACTURING Barnes paying $136M for German mold maker Bristol manufacturer Barnes Group Inc. says it will pay about $136 million cash for the mold-making operations of a German company. Barnes said it expects to close its deal to acquire Adval Tech Holding AG's molds business, FOBOHA, in the third quarter. FOBOHA U.S. has offices in Beverly, Mass. Adval Tech's molds business, based in Haslach, Germany, develops and makes complex plastic injection molds for packaging, medical, consumer and automotive applications. The operation has three factories in Germany, Swit- zerland, and China. Barnes CEO Patrick Dempsey said the addition of Adval's proprietary cube mold technology will enhance its position as a leading global supplier of com- plex molding systems. A rendering of the proposed $58 million mixed-use development to remake downtown New Britain. The project includes a 168-unit apartment complex. R E N D E R I N G | C O N T R I B U T E D TOP STORY NB selects developer for $58M, mixed-use project A New York-based developer has been chosen to build a $58 million, mixed-use project adjacent to CTfastrak in downtown New Britain. POKO Partners LLC has submitted plans to redevelop 125 Columbus Blvd., the 2.26-acre former site of the New Britain Police Department. Mayor Erin Stewart said the project will be a catalyst for reviving the Hardware City's downtown. A sales price still needs to be negotiated. The land is currently appraised at about $200,000. POKO's submission was approved by the city council July 13. "Columbus Commons" will be a two-phase, mixed-use development set to include construction of two complementary L-shaped buildings framing an interior courtyard. The development components include: A large "gate- way" plaza between the two buildings; retail, office space, and/or restaurant entrances on the first floor; 168 apartment units; "activity areas" such as a large office/healthcare tenant space and a large day care center; and expan- sive use of green space. POKO will be seeking funding for the development from several sources, including: the Federal Housing Finance Agency, Competitive Housing Assis- tance for Multiple Families Properties, Urban Act funds and others.

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