Hartford Business Journal Special Editions

www.HartfordBusiness.com July 17, 2017 • Hartford Business Journal 9 Tale of Two Towers Hartford skyscraper pair chart separate paths toward full occupancy By Gregory Seay gseay@HartfordBusiness.com A s office buildings go, this pair of down- town Hartford skyscrapers could not be more different — yet in at least one way, they share a vital attribute. One Financial Plaza — the "Gold Build- ing" — is the older, bigger of the two, anchor- ing downtown's core at 755 Main St. It's name evokes echoes of the Capital City's waning epithet as the world's "insur- ance capital,'' home to such storied names as Aetna, Hartford Steam Boiler and gun- maker Colt's. Until last year, The Gold was headquarters to United Technolo- gies Corp., a world leader in making jet engines, elevators and res- idential/commercial heating-cooling systems. In contrast, Hartford Square North, 10 Columbus Blvd. — the "Candy Cane Build- ing" — sits discreetly on downtown's south- ernmost edge, in the shadow of the Con- necticut Convention Center and the Front Street office-retail-apartments development. It has been in the hands of a special servicer since the owner of the non-condominium portion of the 11-story tower a year ago fell behind on a 10-year, $17.5 million mortgage that matured on July 10. But by summer 2018, it is due to be fully entrenched as the new administrative headquarters for Con- necticut Children's Medical Center (CCMC), whose main campus on Washington Street is within shouting distance. Despite their disparity in ages, sizes, ame- nities and locations, owners, building manag- ers and brokers familiar with both say each possesses the one feature in demand with current and future tenants — ample parking. Parking, says CCMC President/CEO James E. Shmerling, was the deciding fac- tor in choosing 10 Columbus Blvd. as future administrative headquarters for him and 400 or so other CCMC executives, administrators, physicians and support staff. The Candy Cane has several hundred slots of free surface and below-ground parking for tenants. Parking, too, say officials for Talcott Realty, the Gold Building's owner since 2001, will be its ticket to drawing tenant prospects to the 23 percent of the 621,000-square-foot tower still vacant. That includes the three uppermost floors of the 26-story building that are available for lease for the first time since The Gold opened in 1974. UTC brass previously occupied those floors. Travelers Cos., whose Hartford head- quarters campus is opposite The Gold on Main Street and began occupying space there in 2007, is now the tower's largest tenant, said Talcott Senior Vice President Andrew T. Tedford. Attached to The Gold next door is an eight-story, 1,141-space parking garage. Aside from parking, Talcott Realty authorities boast of another element in their favor for luring and retaining commercial tenants: It's central downtown location. Situated at the corner of Main and Pearl streets, the dark-metal, gold-glass sheathed edifice overlooks one of downtown's most bustling intersections. It is one of many stops for the CTtransit bus line. Restaurants, bars, shops, the XL Center, all are a short walk away. It's also equidistant from Front Street and Union Station, Talcott officials say. But the best opportunity, they say, will arrive with the opening of UConn's down- town campus in late August, with some 2,100 instructors, staff and students there when classes are in session. Access to the riverfront, Dunkin' Donuts Park, Connecticut Science Center, The Atheneum and dozens of other office buildings and work sites, plus apart- ments, make for an inviting mix, they say. "The building is right on the forefront of everything happening downtown with UConn and Front Street,'' Tedford said. "That's all right at our front door.'' A slick, 2-minute video, shot using camera- equipped drones, showcases The Gold and its proximity to various downtown landmarks. "We've got to remind people just how centrally located The Gold is,'' Tedford said. Gold's facelift To shine The Gold, Talcott Realty this past year has invested an unspecified sum sprucing up the tower's interior and exterior common areas. In the lobby, new, brighter lighting and flooring, plus sleek, colorful, seating was installed, said Andrew Filler, principal with brokerage firm Avison Young, The Gold's leasing adviser. In the lower level, the building's cafete- ria was reworked with new seating, tables and other fixtures to encourage tenants to stay and dine rather than use it as a "get-it- and-go''depot, Filler said. Outside, an underused patio was trans- formed into an outdoor work/play/network- ing space with wicker furniture, a foosball table, a corn-hole toss and an oversized Jenga wood playset because that is what tenants said their employees wanted, Tedford said. A new gas-fired boiler was installed that has curtailed the building's energy bill, said David Fagone, president of R.M. Brad- ley Co., The Gold's manager. The build- ing's gold-anodized glass panels that give the building its characteristic glow and energy efficiency are being replaced over time because panels only become avail- able in small batches from time to time, Fagone said. But it is the prospect of finding takers for the approximately 100,000 square feet UTC vacated with its move to Farmington that excites The Gold's owners and lease broker. On a recent tour of The Gold's 26th and uppermost floor, there are faint clues that UTC's executives once occupied the space. Stripped of everything except the concrete floorplate and overhead lighting, sprin- klers and air ducts, the floor outlines where office suites once lined the outer edges of the rectangular space. The openness of the space is eyecatch- ing. So is the 360-degree panoramic vistas of Hartford and beyond through the windows. Easels mounted with digitally generated inte- rior mockups give tenant prospects an idea of what they might do with the space, Filler said. "In today's world, with tenants wanting to have more open spaces," Tedford said, "these wide-open, column-less spaces are attractive.'' According to city tax records, The Gold's market value in the 2016 grand list revaluation was $64.1 million, almost unchanged from its previous valuation. The Candy Cane, meanwhile, whose ground-floor space was previously sold off as office condominiums had $16 million remaining on its original mortgage, accord- ing to New York City commercial-mortgage tracker Trepp LLC. n workers in return for state financial assistance. At 10 Columbus, Filler said CCMC will occu- py floors two, three, four and five in the building erected in 1986. Once CCMC fully moves in, the building should be fully occupied, he said. That would be a big rebound for a property that had fallen on hard times in recent years. It landed in receivership in May 2016 after its previous owner "turned in the keys'' because it was burdened with more debt than it was worth, said landlord's broker Christopher Ostop, senior vice president and broker for property broker-adviser Jones Lang Lasalle LLC. LNR is the building's receiver. "We're thrilled to have them come in the building,'' Ostop said. Hartford radio-station owner/operator iHeartMedia Inc. is currently 10 Columbus' largest occupant in ground-floor condomin- ium space, Ostop said. The building's upper floors are leased. CCMC's moves comes at a critical juncture for Hartford, which is struggling financially due to steep legacy expenses such as retiree payments and benefits, and the highest tax levy on property owners that limits options for luring new investment to the city. However, the debut this fall of UConn's downtown campus, which will bring over 2,000 people to the center city most weekdays and nights, plus a growing number of people opting to rent newly created downtown apartments, is generating renewed optimism about Hartford. In addition, Glastonbury's United Bank is moving its corporate offices to Goodwin Square office tower on Asylum Street. The once-shut- tered Goodwin Hotel has reopened with new ownership that invested heavily in renovating guest rooms, dining-networking spaces, and lobby/entryway improvements. n Upper-floor spaces that Connecticut Children's Medical Center and staff will begin occupying later this year. P H O T O S | S T E V E L A S C H E V E R 10 Columbus Blvd., the "Candy Cane Building.'' Downtown's One Financial Plaza, the "Gold Building." P H O T O | H B J F I L E P H O T O | C O N T R I B U T E D www.kelsercorp.com 43 Western Blvd, Suite 150 Glastonbury, CT 06033 860 610 2200 Trade secrets, client data, your reputation, your license, your records, your money... What do you have to lose in a cyber attack? Probably more than you know. Kelser offers a no-cost cybersecurity assessment so that you can find out. www.kelsercorp.com/dontlose

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