Greenberg pivots Windsor office redevelopment to condos; retail construction set to begin

Prolific real estate investor Mark Greenberg is making a significant change to his planned redevelopment of Windsor’s Targeting Centre office complex, opting to build for-sale condominiums rather than rental apartments as he prepares to launch construction of the project’s commercial component. Windsor’s Town Planning and Zoning Commission on Sept. 9 approved a detailed development plan for the residential portion of Greenberg’s mixed-use redevelopment at 1 and 10 Targeting Centre and 465 Bloomfield Ave., just off Interstate 91. The approval allows up to 201 multifamily units. Greenberg said he now intends to redesign those units as condominiums, an uncommon offering in Connecticut’s current multifamily construction boom. “Now we're at the point where we can hold permits at such time that we get financing for it,” Greenberg said. “I've decided to sell these as condo units as opposed to rental units. That is different.” More than a year ago, Greenberg introduced a plan to convert empty office buildings at 1 and 10 Targeting Centre, add a third ground-up building and construct commercial retail/restaurant space on the periphery of the property just off Interstate 91. Greenberg later opted to demolish the existing buildings and do an entirely ground-up development. Last week, the town Planning and Zoning Commission signed off on Greenberg’s detailed plans, even as he contemplated a switch to condominiums. Greenberg said the decision is partly a bet that there is pent-up demand for homeownership among buyers who want multifamily living without renting. He acknowledged that the strategy is based more on his long experience and instincts than conventional market research, in part because there are few comparable large-scale condominium developments underway in Connecticut. “This is just partially a gut reaction that we're ready for it,” Greenberg said. Greenberg has experience with the product. He was active converting New York City rental properties to cooperatives and condominiums during the 1970s and 1980s. He also views condos as a way to distinguish Targeting Centre from a growing pipeline of rental housing in Windsor. He is concerned about the market’s ability to absorb the apartments currently planned or under construction in town, particularly given the rents needed to support new construction. “I have my concerns,” Greenberg said. “In Windsor alone there is, I don't know, 2,000 units on the drawing board and being built for rental housing. And I must admit to a certain extent, I'm unsure of the absorption of that rental housing.” Greenberg’s Targeting Centre project encompasses about 11.6 acres. He acquired a vacant, 97,256-square-foot office building at 1 Targeting Centre for $2.3 million in July, adding it to his neighboring 51,778-square-foot office property at 10 Targeting Centre. The residential design is now likely to change as Greenberg shifts to an ownership model. Greenberg said he is working with architects to reconsider the mix of one-, two- and three-bedroom units, with a preference for more two-bedroom and potentially three-bedroom condos. That could result in a final unit count below the 201 units approved by the town. The units will have finishes above those typically found in rental apartments, Greenberg said, although he does not envision Targeting Centre as a luxury development. “I would say it would be mid-level to higher than mid-level, but I can't say it's going to be luxurious,” Greenberg said. Greenberg also plans to restore balconies to the residential design. Pricing has not been determined. Greenberg said that will depend on final architectural specifications, construction costs, financing and other carrying expenses. Before residential construction begins, however, Greenberg plans to build the commercial portion of Targeting Centre. Two new buildings along Bloomfield Avenue will house a Starbucks, Chipotle and Jersey Mike’s Subs. Greenberg said financing for that portion is expected to close shortly, with construction anticipated to begin in roughly two months. “It's completely fully approved,” Greenberg said. “The financing is closing next two weeks from today. So, we're going to be starting construction in about two months.” Chipotle and Jersey Mike’s will share one building, while Starbucks will occupy a standalone building. Windsor approved the detailed development plan and required special-use permits for the commercial portion in May. Greenberg expects commercial construction to take roughly five to six months. He said he would use that period to finalize the residential design, secure financing and line up an experienced builder or co-developer. Greenberg said his preference is to remain involved in developing the project rather than sell the residential development rights. Greenberg says his condo experience is limited to apartment conversions. He is actively seeking a partner experienced in ground-up residential construction. “I'm trying to find an experienced builder partner because this is a new venture for me,” Greenberg said. “My first choice would be to build it with somebody, a builder who's done this before.”