Developer Martin Kenny has his sights set on his next major development.
Fresh off the success of his $12 million Addison Mill apartment project in Glastonbury, Kenny now has plans to triple down on his investment in the cozy suburb just southeast of Hartford.
Kenny is proposing to build a 230-unit luxury apartment complex off the New London Turnpike in Glastonbury on the site occupied by Flanagan Industries.
The $35 million plan—to be called Flanagans Landing—includes renovating and converting the existing manufacturing complex into 33 apartment units to preserve the old-style mill look and brick façade.
Five new apartment buildings, containing another 200 units, would be erected on the west side of the 33-acre site.
The east side of the property would be preserved as green space for walking trails. And an 8,000 square foot restaurant pad is also in the plans, which have only been informally presented to town officials.
Kenny said he is attracted to the project because Glastonbury remains underserved for quality rental housing.
The success of his Addison Mill project, in which he turned a 19th-century water-powered textile mill into a now fully occupied 55-unit apartment complex, also signals the demand is there, Kenny said.
“Most rental housing in town was built 40 to 50 years ago,” Kenny said. “This product type is underserved. Teachers and young professionals don’t have a lot of rental options in Glastonbury.”
Flanagans Landing would include a mix of studio-, one- and two-bedroom units that are upscale and aimed at working professionals or empty nesters, a market base that downtown Hartford landlords are in hot pursuit of.
Rental rates will range from $900 to $2,300 per month.
Flanagan Industries, which is an aerospace components manufacturer, still operates out of part of the manufacturing plant, but is prepared to move its remaining operations to a another building on Mill Street.
The land is owned by a limited liability corporation controlled by members of the Flanagan family, who are partnering in the development.
Kenny and some of the Flanagan’s grew up together so the ties between them run deep.
Kevin Flanagan, who is the director of sales at Flanagan Industries, said the family was interested in the project because of Kenny’s success with Addison Mill.
He said he also sees the development as a tribute to his father and uncle—Thomas and James Flanagan—who co-founded Flanagan Industries and remain bedrocks of the Glastonbury community.
“I think it’s a great concept,” Kevin Flanagan said.
Kenny is well-known for his apartment projects in Greater Hartford. He was the developer behind the $38.5 million Trumbull on the Park complex in downtown Hartford, which has consistently seen occupancy at 90 percent or above.
His Addison Mill complex was named the 2010 Best Specialty Project by the Connecticut Real Estate Exchange.
Flanagans Landing will likely present its share of challenges. Kenny said the site will require a substantial environmental cleanup. And the approval process is likely to take up to a year to complete.
Kenith Leslie, the director of community development in Glastonbury, said the town has not formally reviewed the project yet, but the town has been made aware of the plans and is working on regulations that could allow it to move forward.
Leslie said there is strong demand for rental housing in town.
Even though much of the rental stock dates back to the 1960s, vacancy rates remain low.
Leslie said he thinks demand for rental housing remains strong, in part, because homeownership continues to be a struggle for many people in this economy.
Nationally, that is certainly where the trend lines are pointing. The rental sector remains the one bright spot in an otherwise dreary housing market, according to a report issued last week by Freddie Mac.
From mid-2010 to mid-2011, there was a net increase of 1.4 million households that moved into rental housing, the report said, citing U.S. Census Bureau data. That trend has pushed rental vacancy rates to their lowest levels in five years.
At the same time, apartment rents and new construction starts of apartment buildings are on the rise.
Much of the rental demand is from young and newly formed households who have decided to postpone homeownership in favor of renting during unsettled economic times, the report said.
Flanagans Landing is one of several major apartment construction projects now in the works for Greater Hartford.
The developer of Evergreen Walk in South Windsor recently received approval to build 200 upscale one- and two-bedroom apartments.
In downtown Hartford, where city officials have said there is a need for about 1,000 new apartment units, a New York development firm is planning to spend $20 million to convert the former Clarion Hotel into about 180 upscale rental units.
PMC Property Group plans to convert the empty office space at the former SNET building at 55 on the Park into five more apartment units and add another nine units at the apartment complex at 915 Main St. And Northeast Neighborhood Partners Inc. is planning to convert the Capitol Center office building into 40 apartment units.
