Efforts to redevelop a portion of the former Fuller Brush manufacturing campus in Hartford into 153 market-rate apartments have gained momentum, with the Capital Region Development Authority’s recent approval of an $8.5 million low-interest loan. The $36.2 million project is being developed by Shelbourne, a major investor in Hartford real estate. A city development fund […]
Efforts to redevelop a portion of the former Fuller Brush manufacturing campus in Hartford into 153 market-rate apartments have gained momentum, with the Capital Region Development Authority’s recent approval of an $8.5 million low-interest loan.
The $36.2 million project is being developed by Shelbourne, a major investor in Hartford real estate.
A city development fund administered by CRDA will provide $3 million under the recent approval, which took place last month. The remaining $5.5 million will come from state allocations to CRDA, and still requires state Bond Commission approval.
The CRDA funding agreement will help Shelbourne lock in bank financing ahead of further potential interest rate hikes, said CRDA Executive Director Michael Freimuth.
With rising rates and supply chain issues driving up materials costs, there is a risk the project could become financially unfeasible without quick action, Freimuth said.
“I think if we sit around for six months, we are going to be back here asking for some more money,” Freimuth said.
Shelbourne plans to finance construction with $12 million in conventional loans, $8.5 million through CRDA, $6.9 million from the Connecticut Green Bank, $1 million in federal affordable housing grant funds, $1.1 million in federal historic tax credits, and $5.7 million in equity.
Shelbourne paid $4.3 million for the 12.5-acre Fuller Brush property at 3580 Main St. Located in Hartford’s North End, the historic complex has 10 buildings with 326,000 square feet of space. The first phase of Shelbourne’s redevelopment effort will transform two buildings – totaling 174,565 square feet – into apartments, and a third into a mix of 13 two-bedroom apartments and 140 studio and one-bedroom apartments, according to CRDA. A third building will be transformed into amenity space for tenants.
“Shelbourne is very committed to bringing quality housing and a transformative, mixed-use project to a crucial neighborhood of our city, which has been traditionally underserved and needs economic vibrancy,” Michael Seidenfeld, Shelbourne’s chief operating officer, said in a past interview about the project. “We believe this project will bring jobs, residents and a much better quality of life to the neighborhood.”
Based in New York, Shelbourne has either bought or been a partner in the purchase of more than $250 million in Hartford real estate over the past eight years, according to the company. Shelbourne said it has spent more than $30 million improving its Hartford properties.
In mid-2020, Shelbourne and Waterbury-based Axela Group purchased for $22 million the former Red Lion Hotel at 50 Morgan St., with plans for an $8 million property renovation and conversion into 273 apartment units.
Shelbourne is also a major partner in the Pratt Street mixed-use redevelopment and the largest office landlord in downtown Hartford, owning four Class A office towers.
