Developer poised to purchase 23,000-sq-ft downtown Waterbury building for conversion to apartments over retail

A Long Island family that is heavily invested in Waterbury’s downtown is poised to buy a 23,000-square-foot office/retail building from the city, with plans to convert it into apartments over refreshed retail spaces.

The Mariolis family began buying in Waterbury in December 2021, with a $190,000 purchase of a century-old, 11,040-square-foot building at 111 Bank St., that had long housed clothing retailer Tony’s Men’s Shop. That has since been converted to eight apartments over first-floor retail.

Various limited liability companies tied to the family have since purchased eight more buildings, seven of which are downtown. Some are renting as office, industrial or retail spaces; others are being converted into apartments or a mix of apartments over retail.

Now, Waterbury Mayor Paul Pernerewski’s administration is seeking approval from the Board of Aldermen to sell the two-story building at 24-30 Bank St., also known as the Exchange Courtyard, to a limited liability company led by the Mariolis family for $585,000.

The city purchased the building, along with a neighboring 62,690-square-foot commercial building at 21 West Main St., for $4.47 million in December 2023. At the time, the buildings were mostly vacant and suffering from neglect. City officials aimed to preserve the buildings and return them to productive use.

The city issued a request-for-proposals in late October, seeking developers interested in transforming the Exchange Place building into apartments, or a mix of apartments and retail space.

The Mariolis proposal, according to a memo from city Finance Director Michael LeBlanc to aldermen, would transform second-floor office spaces of the Exchange Place building into 25 to 30 apartments. It would also perform “significant upgrades” to the retail spaces on the first floor, to attract “high-quality” tenants such as niche retail stores, boutique fitness studios, co-working spaces or restaurants, according to LeBlanc.

The Mariolis-led limited liability company “proposed to transform 24-30 Bank St. into a mixed-use development that seamlessly combines modern residential living with vibrant commercial spaces,” LeBlanc wrote.

Pernerewski, on Thursday, said the city bought the deteriorating building, which had been segmented into ineffective condo ownership, in order to preserve it. Selling to the Mariolis family is a “home run,” he said.

“All in all, it’s really what we wanted to see happen when we bought that building,” Pernerewski said.

John “Gianni” Mariolis said his family had been interested in the Exchange Courtyard building before the city’s purchase, and eagerly responded to the RFP. He likes that the interior courtyard creates a separate and distinct feel from the surrounding area.

“You can build your own little community in that center of the downtown,” Mariolis said.

Mariolis said he hasn’t yet priced out renovation costs, but plans to spend at least a “few million” dollars. He expects the renovation to take up to two years, once the property is secured.

Mariolis said Waterbury’s downtown is an undiscovered gem, with charming antique buildings that can be purchased at reasonable prices. He said his family plans to continue investing.

Waterbury Economic Development Director Joseph McGrath said the Mariolis family’s vision for downtown matches the city’s hope to convert empty office spaces into apartments.

With the Mariolis family and other developers active in the downtown, the city anticipates 150 market-rate apartments completed by this summer. McGrath said there are 300 downtown apartments in the development pipeline.

The Board of Aldermen, during its Jan. 8 meeting, will be asked to set a Jan. 21 public hearing about the proposed sale of 24-30 Bank St. The board could vote on the sale the same night as the public hearing. 

The city plans to use the larger office building at 21 Main St. as a temporary home for staff from various city departments that will be displaced for an overhaul of the Chase Municipal Building beginning later this year. 

Some surplus space will also be leased out to long-term office tenants, Pernerewski said. He expects the Chase renovation will be completed in about two years, after which 21 West Main St. will also be sold to private investors.