🔒Hartford Superior Court approves foreclosure of massive downtown Hartford office complex

A judge has approved the foreclosure of Constitution Plaza, a six-building office complex totaling 670,626 square feet in downtown Hartford. Monday's order by Hartford Superior Court Judge Claudia A. Baio resolves a foreclosure lawsuit launched nearly two years ago. It highlights enormous challenges facing the downtown Hartford commercial office market. The action will, in the near term, also free creditors to sell or reposition the property. It is an opportunity that city officials are eager to seize. “Constitution Plaza has long petered on the line between opportunity and challenge,” Hartford Mayor Arunan Arulampalam said. “This may be the best shot the city and civic leaders get in a little while to tilt that balance in favor of opportunity.” Arulampalam said he is speaking with “stakeholders” about ensuring Constitution Plaza ends up in the hands of “responsible owners” who can revitalize the property, which serves as an important connection between downtown Hartford and its riverfront. Arulampalam said the city is open to conversion of some of the office buildings into apartments and hotel rooms. Baio's decision granted a foreclosure petition brought by lenders owed $50.87 million, resulting from Monsey, New York-based Constitution Plaza Holding LLC’s $71.1 million acquisition of the property in June 2015. Wilmington Trust and its special servicer, LNR Partners LLC, filed a foreclosure lawsuit in January 2024 against Constitution Plaza Holding LLC. Wilmington Trust was the lead holder of $55 million in commercial mortgage-backed security loans originally issued to the owner in 2018. According to court filings, Constitution Plaza Holding LLC failed to repay the loan by its May 6, 2023 maturity date. The debt was secured by properties at 1, 10, 100, 250, 260, 280, 290 and 292 Constitution Plaza. The properties include six buildings that range from 6,471 to 332,926 square feet, oriented around a landscaped courtyard near the eastern edge of downtown Hartford. Originally constructed in 1962, the complex underwent major renovations in 2000 and 2001. In late 2024, Delaware-registered JPMDB 2018-C8 Constitution Plaza LLC became the majority debt holder and took over as lead plaintiff in the foreclosure case. Baio’s ruling cites an appraisal valuing the property at $13 million — far below $50.87 million owed. The foreclosure judgment will take effect on Dec. 22, 2025, when title to the property transfers to the new owner. The ruling comes amid a steep decline in downtown Hartford’s office market following the COVID-19 pandemic, as a push to remote work and downsizing of corporate office spaces have driven vacancy rates higher and property values lower. Several other major Hartford office towers are also under distress. The 23-story “Stilts Building” at 20 Church St., the 12-story “Metro Center” at 350 Church St., and the 38-story “City Place I” at 185 Asylum St. are all under court-appointed receivership. The Stilts Building and Metro Center — both owned by Brooklyn-based Shelbourne Global Solutions — are also facing foreclosure actions. An appraisal submitted to court in September by CBRE Senior Vice President Louis B. Pellegrino pegged Constitution Plaza’s occupancy at 71.2% and value at $13 million. That appraisal relied on an income-based valuation. The report warned of future challenges as two of the complex’s largest tenants, law firm Shipman & Goodwin and insurer XL America — both of which individually occupy more than 100,000 square feet — are expected to reduce their space when their current leases expire in 2026 and 2027. Receiver Ian Lagowitz, of Trigild IVL, engaged JLL to lease and manage the property over the past year. Chris Ostop, a managing director with JLL, said he doesn’t expect the ruling to have any immediate effect on tenants at Constitution Plaza or on the broader downtown Hartford office market. The property has been under a receiver’s control for more than a year, he noted. However, Ostop said the foreclosure should help clear the way for a sale or potential repositioning of the complex. “It just makes it cleaner for the lender to take the next step,” Ostop said. “It has no bearing on the day-to-day operations of the building. What comes next for the building, it’s all being worked out by the majority lender.”