When developers vote with their wallets, it’s a good sign that they strongly believe that their investment will pay off. So when four prominent city developers jumped at the chance to convert a 40-year-old office building at 95-101 Pearl St. into residences, it spoke volumes about their faith in Hartford’s future.
Public relations folks can say all they want about the promise of the city. But when developers walk the talk, committing money and their reputations to projects in Hartford, it says a lot more. It says that they are willing to invest in Hartford, despite the city’s struggle to attract retailers that gladly flock to nearby West Hartford Center.
The positive response to the city’s RFP further demonstrates that Hartford’s future has potential in the eyes of those who have skin in the game, which is notable because a developer’s first rule is to never lose money. Successful projects become their calling card to investors for future projects.
The fact that the four city developers want to convert the former Pearl Street office building into residences, despite their knowledge of the problems that plagued the property, also says a lot. On a previous RFP round, the bid winner went running back home to New York when the high cost of removing asbestos from the building came to light.
In contrast, the current RFP respondents aren’t running away scared. They know Hartford up close and this property, and they wouldn’t bid on it if the numbers didn’t crunch out a profit.
While developers assume some risk, they also pursue business deals that make sense and will offer them a return. That fact should provide confidence to those who pine for Hartford’s renaissance.
Even though the city continues to struggle with a number of challenges, and the challenges are numerous, it has not deterred new development. The attraction of retailers to downtown has been dismal. There is still no downtown book store. Nor a grocer. And many retailers continue to struggle, especially restaurants and nightclubs, which number among those that have opened to applause, and then shut their doors quietly.
Violent crime continues to make headlines and shouts “stay away” to suburban residents. The turmoil and performance of city schools hurts the city’s chances of attracting middle-class families interested in living the urban life.
Despite the obstacles, the four RFP respondents still see Hartford’s promise. And they are doing so with their eyes wide open.
Martin Kenny developed the $38.5 million Trumbull on the Park, overlooking Bushnell Park. Carlos Mouta renovated several commercial, industrial and residential properties in the Parkville neighborhood, and Sanford Cloud Jr. salvaged a historic Lewis Street property where U.S. Sen. Christopher Dodd’s office is now located. David Nyberg, who converted the former SNET building, now called 55 on the Park, into downtown apartments, is in the process of renovating offices at the former American Airlines building on Main Street into more apartments. He converted another Pearl Street office building into condominiums, and is in the process of renovating a number of Asylum Hill apartments.
Even more notable, some of these developers invested solely with private investors, absent any public funds. And they still want to get a piece of Harford’s star, which, by virtue of their recent bids, is still rising.
