The Capital Region Development Authority on Thursday approved funding for the redevelopment of the historic 55 Elm St. office building in downtown Hartford into apartments.
Norwalk-based Spinnaker Real Estate Partners has submitted plans with the CRDA to redevelop the 205,000-square-foot office building into 164 residential units as well as co-working space and a restaurant.
Up to 70 units of the $63.3 million project will be constructed so they can be made available for hotel rooms, if the market justifies the need, according to a project proposal submitted to CRDA.
CRDA’s board has approved $13.5 million in support of the project, including a $7 million construction loan and $6.5 million historic tax credit bridge loan.
The next step is for the state Bond Commission to consider and then approve the funding before the deal is completed, according to CRDA Executive Director Mike Freimuth.
The rest of the project financing includes: a $32.5 million conventional mortgage; $7.3 million in equity; and $10 million in federal historic tax credits, records show.
Eighty-percent of the units will be market rate while the rest will be affordable units, according to CRDA.
Spinnaker bought the property and some nearby parking lots just over a year ago for $6.8 million.
The 55 Elm St. project is a cornerstone of the broader Bushnell Park South neighborhood redevelopment, which aims to bring more mixed-use activity near vacant and empty lots by The Bushnell.
