The Capital Region Development Authority is considering a $6.5 million loan toward a $45.35 million conversion of two antique state office buildings on Hartford’s Trinity Street into 108 apartments and a restaurant.
The CRDA’s Housing and Neighborhood Committee, meeting Thursday, gave its blessing to the loan request from a development team of Philadelphia-based Pennrose and The Cloud Co., of Hartford.
The Pennrose-Cloud team were among six bidders to apply to a Connecticut Department of Administrative Services solicitation in 2021 for the redevelopment of two surplus office buildings at 18-20 and 30 Trinity St.
The pair are located off the southern edge of Bushnell Park. According to documents shared with the CRDA, the partners will acquire both buildings for $1 million.
Plans call for 108 apartments, mixing studios, one-bedroom and two-bedroom units. Twenty-percent would be set aside for renters earning half or less of the area median income.
Plans call for a restaurant on the ground floor of 30 Trinity St. and, possibly, interior public space where people could wait and work and take calls in between business at nearby state agencies.
For now, the development team is hunting down financing to see if the project is viable. CRDA Executive Director Michael Freimuth told board members he believes they have until August to complete due diligence and commit to a purchase. They are still about $5 million to $6 million short of their budget target, but Thursday’s approval will be an important step to closing on other funding sources, Freimuth said.
Freimuth said the buildings have some challenges that impact the budget, including central space that cannot be converted into apartments, and structural issues. They are, however, buildings of critical significance, located adjacent to Bushnell Park, the Bushnell Theater and within sight of the Capitol, he noted.
Freimuth said his agency has been working with the development team for about a year trying to resolve the budget.
CRDA would be able to help the development by setting aside up to 108 spaces in its nearby Bushnell South parking garage for rent by tenants of the building, Freimuth noted.
Freimuth said his agency is speaking with state and other agencies trying to close the funding gap, and noted there is a pending request for a federal funding opportunity.
“It’s an answer that has yet to be put on the table and we have to solve it by August,” Freimuth said.
The CRDA subcommittee endorsed the loan Thursday, but it will need further approvals from the full CRDA board of dDirectors, as well as the state Bond Commission.
The 30-year loan is proposed at 1.5% interest for five years, with adjustment of the rate in year five.
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