🔒Amid market struggles, several of Hartford’s large office towers could exit foreclosure

Several of Hartford’s largest downtown office towers — including Constitution Plaza, Metro Center and the 38-story City Place I building — are nearing potential sale or settlement after years in foreclosure and receivership, as lenders and court-appointed receivers move to resolve the distressed properties. The deals could provide some of the first clear post-pandemic benchmarks for downtown office values, a key issue as Mayor Arunan Arulampalam seeks to delay this year’s revaluation amid concerns declining commercial values could shift more of the tax burden onto homeowners. Chris Ostop, managing director at real estate services firm JLL, said delaying the revaluation — required by state law every five years — could allow pending sales to close and establish more accurate pricing for downtown office buildings. “From what I am hearing, a lot of these buildings are finally coming to the point where they’re likely going to be sold,” Ostop said. “That will absolutely determine exactly where the fair market is. So, the city could be right (in trying to delay the revaluation) in the sense they will have a clearer line of sight in 12 months.” He added that properties could trade at significantly reduced prices, clearing debt and legal claims while opening the door for new investment.

Constitution Plaza

One of the most closely watched properties is Constitution Plaza. In October 2025, Hartford Superior Court Judge Claudia A. Baio approved the foreclosure of the six-building office complex totaling 670,626 square feet. Lender Wilmington Trust and its special servicer, LNR Partners, filed suit in January 2024, alleging Monsey, New York-based Constitution Plaza Holding LLC failed to repay a $55 million loan that matured May 6, 2023. The ruling was in favor of Delaware-registered JPMDB 2018-CA Constitution Plaza LLC, which became the majority debt holder in 2024 and took over as lead plaintiff. In her decision, Baio cited an appraisal valuing the property at $13 million — well below the roughly $50.9 million owed. The foreclosure had been scheduled to take effect Dec. 22, but has been delayed several times as the lender and property owner pursue a potential sale. A March 3 court filing states the parties entered a cooperation agreement allowing a court-appointed receiver to market the property and attempt a third-party sale outside of foreclosure.

Metro Center

The 12-story “Metro Center” office tower at 350 Church St. could also soon hit the market. Receiver David Fagone, of RM Bradley Management Corp., filed a motion in March seeking permission to market and sell the 293,639-square-foot building, along with an adjacent parking lot. Fagone was appointed in January 2025 by Superior Court Judge Matthew Dallas Gordon as part of a foreclosure lawsuit filed by Webster Bank against the property’s owner, Brooklyn, New York-based Shelbourne Global Solutions. Shelbourne paid $49 million for the building in 2017. Court records show about $34 million remains due on the mortgage, while the property’s value has fallen to about $18 million. Fagone’s motion requests a $5,000 marketing budget and approval to compensate a listing broker with a 2.5% commission on the gross sale price. In a statement, Shelbourne said it remains actively engaged in resolving the situation at Metro Center and is pursuing a path that reflects current market conditions. The firm said many downtown office properties remain under financial pressure, in part because lenders have been slow to adjust valuations following pandemic-era shifts in demand. As those adjustments occur, Shelbourne said, it expects conditions to improve and support a broader recovery in Hartford’s office market.

City Place I

At the same time, a court-appointed receiver is moving to sell the 884,669-square-foot City Place I office tower by Nov. 30. In a March 27 Hartford Superior Court filing, receiver Lewis Taulbee, of JLL, requested approval to hire CBRE to market the 38-story property. The brokerage would earn a 2% commission, or $500,000, whichever is greater. Boston-based Paradigm Properties bought the tower at 185 Asylum St. for $113.2 million about a decade ago, financing the deal with a $79.27 million loan originated by Wells Fargo and later transferred to investors, with Wilmington Trust serving as trustee. In December 2024, Wilmington Trust filed a foreclosure complaint stating the property-owning entity acknowledged it could not meet its debt obligations and consented to a receivership. A March court report shows the building is 45.9% occupied but continues to operate “smoothly,” with ongoing leasing activity. So far this year, one lease has been renewed and one terminated, following eight renewals and one termination in 2025.

Other key building in flux

Shelbourne appears close to resolving a foreclosure case tied to another of its Hartford holdings — the 420,000-square-foot, 23-story office tower at 20 Church St., commonly known as the Stilts Building. Wells Fargo filed for foreclosure in 2022, alleging missed payments on a $31 million mortgage. The bank later demanded repayment of a $25.7 million outstanding balance and moved forward with the case. On March 20, attorneys for both sides jointly requested a pause in proceedings, indicating they had reached a settlement agreement that includes paying off the loan by June 18. Shelbourne declined to comment on specific details of the pending transaction, citing ongoing proceedings, but said it is “very enthusiastic” about the opportunity to reposition the property. The firm said it views the Stilts Building as a candidate to be restored as a “premier, first-class” downtown office tower and expressed confidence in both the property and Hartford’s long-term market outlook.