Nearing completion of a $67 million conversion of a century-old office complex on the south side of Hartford’s Bushnell Park into 160 apartments, Norwalk-based Spinnaker Real Estate Partners opened the doors for dignitaries Wednesday.
Gov. Ned Lamont, Hartford Mayor Arunan Arulampalam and other guests toured units with 20-foot ceilings, an ornate foyer lined with Doric columns, and a grand, chandeliered room set aside for a future restaurant.
While the finished product has been worth it, Spinnaker Chairman and CEO Clay Fowler told visitors the challenges of restoring a historic building were like “having a tooth drilled without Novocain.”
“Rehabs are spectacular to finish, but they are gut-wrenching to produce,” Fowler told a gathered crowd.
Renovation of the seven-story, Renaissance Revival-style main building at 55 Elm St. — originally built in 1925 — and its slightly younger four-story annex came with plenty of surprises, Fowler said. Some were the result of the building’s many past uses.
The 234,000-square-foot complex originally housed Connecticut General Insurance Co., later serving as state offices, including for the state treasurer and attorney general.
Spinnaker acquired the buildings and associated parking in early 2020 for $6.8 million.
Unexpected structural issues and the added oversight tied to state and federal historic preservation funding increased both the project’s cost and timeline, Fowler said, though he declined to specify by how much.
Lamont praised the project as an example of the office-to-residential conversions helping to reshape cities across Connecticut. He noted that many cities had 30% to 50% more residents a half-century ago.
“They are coming back, growing,” Lamont said. “People want to be here.”
Michael Freimuth, executive director of the Capital Region Development Authority, said the project had a “long, windy road” before Spinnaker became involved.
He said former Gov. Dannel Malloy first called for converting the property to housing about 12 years ago, prompting a broader effort to redevelop state office buildings and relocate their occupants.
The nearly finished product, Freimuth said, “really does set a new standard,” for Hartford’s ongoing effort to encourage multifamily housing around Bushnell Park and downtown.
Arulampalam called the project a model for similar redevelopments across Hartford, and an example of the city’s push to replace the “sea of parking lots” around downtown with housing and projects that reconnect neighborhoods.
Spinnaker began leasing apartments last fall in the four-story annex building, known as The Vault, which has 32 units and is nearly fully occupied, Fowler said.
Leasing began in July for the seven-story main building, called The 55 Elm Club, where about half of the 128 apartments are ready for tenants and the rest are nearing completion.
In The Vault, Spinnaker is advertising a 460-square-foot studio for $1,440 a month and a 550-square-foot one-bedroom for $1,620.
At The 55 Elm Club, studios range from 468 to 626 square feet with rents starting at $1,750. One-bedrooms, from 484 to 1,021 square feet, start at $1,620, while two-bedrooms, from 1,064 to 1,490 square feet, start at $2,695.
Richard P. Ballou, a Realtor with Houlihan Lawrence Wareck D’Ostilio, said he is in talks with several prospects for the 6,000-square-foot restaurant space off the main lobby at 55 Elm St.
Another 5,000-square-foot retail space is available on the first floor of The Vault, where Spinnaker hopes to attract a brewery or restaurant that could use the outdoor courtyard, Ballou said. A 3,400-square-foot basement space is also available and could be used for recreational retail, such as pickleball.
Freimuth said CRDA supported the project with a $6.5 million bridge loan in advance of historic tax credits and a $7 million permanent loan. Additional financing included a $31.5 million construction loan from M&T Bank, a $9.4 million loan through Chase Bank and a certified development corporation, $3 million in deferred developer fees, and $10 million in equity from Spinnaker.
More to come
Although work on the two-building conversion at 55 Elm St. is nearly complete, Spinnaker has more development planned nearby.
The firm is in line to receive $16 million in loans to build 180 apartments in two new buildings on adjacent parking lots, a project previously estimated at $66 million. Fowler said Wednesday he expects construction to begin next year.
In early 2024, Spinnaker also paid $3.25 million for 2.2 acres of parking lots at 63 and 67 Capitol Ave. and 186 Buckingham St. for future development.
“There is a lot of potential in Hartford and we feel that potential has been underachieved,” Fowler said.