🔒Investors bet on troubled Waterbury apartment property amid neighborhood turnaround effort

A New Haven real estate brokerage and investment firm recently paid $1.39 million for a largely vacant mixed-use apartment building in Waterbury with a deeply troubled past. The purchase of 174 Willow St. gives Vanguard Private Client Group control of a century-old property marked by graffiti, empty apartments, piles of debris and a history of crime and code violations. Still, Vanguard’s leaders see opportunity. They believe their growing capacity and hands-on approach — combined with a sustained effort by city officials to stabilize the surrounding neighborhood — can transform the decaying property. “We have a couple hundred units that we own and manage,” said Vanguard founder and CEO Alex Opuszynski. “We also have our construction and management in-house, which gives us a level of comfort where others aren’t, which allows us to put deals together that others can’t.” At first glance, 174 Willow St. is a handsome, four-story tan brick building. But its challenges quickly become apparent upon closer inspection.

Strong smells of animal and human waste linger in an alley beside the property, which has a history of fire code violations. Three storefronts and several windows are boarded up. In early June, graffiti covered portions of the interior, while a mountain of construction debris and trash sat behind the building. Daylight pours through a hole in the roof into a fourth-floor apartment. One sign hanging in a second-floor hallway reads: “Sorry, We’re Stoned.” A prior owner put three signs in the building’s foyer reading “Keep Out,” “Warning, Security Cameras in Use” and “No Smoking, No Vaping.” Vanguard wasted little time beginning the cleanup after closing on the property June 1. That morning, the company had two large dumpsters outside and workers carrying out trash and abandoned furniture. Two days later, the building’s 31 apartments were largely cleared of trash and crews had begun cleaning the exterior. Opuszynski said the property had been offered as an open listing for about a year. Vanguard, which had unsuccessfully tried to market the building on behalf of the seller, ultimately decided to acquire it. The property’s previous owner — an LLC headed by Montvale, New Jersey-based Israel Wiznitzer — paid $1.9 million for the building in 2022. Opuszynski and Vanguard Vice President Andrew Stein said they were able to negotiate with lenders to forgive about $500,000 in debt, clearing the way for a short sale. “We haven’t seen a lot of commercial short sales,” Opuszynski said. “But in this case, I think everyone knew the writing was on the wall. We could objectively determine where the value is. We have to service debt, and we have to put together a deal that makes sense, otherwise it’s going to sit and decay.”

Making a bet

Vanguard’s planned upgrades include a new roof, fresh paint, general repairs, refurbished kitchens with granite countertops, new flooring, and new fob-controlled security and fire alarm systems throughout the building. Vanguard financed the project with a $2.65 million loan from Alphonse J. Balzano Jr., a founding partner of New Haven personal injury law firm Balzano & Tropiano. The loan carries 10% interest, with an initial disbursement of $1.55 million, including a $52,000 origination fee. According to the mortgage recorded June 1, another $1.1 million is being withheld to fund construction scheduled for completion by Nov. 1, 2027. Balzano described Waterbury as a “hardworking, blue-collar city,” noting that many friends and relatives from his childhood home in northeastern Pennsylvania settled there after the coal industry’s collapse. He also said he has invested with Opuszynski before and has confidence in his ability to execute the project. “He always comes through with beautiful apartments,” Balzano said. “I have confidence in him and I think Waterbury needs people like him who will invest and take time to produce nice living conditions for its residents.”

Private investment is key

Vanguard’s Opuszynski said Waterbury’s blue-collar roots continue to support demand for quality housing. That demand is one reason Vanguard is willing to invest in 174 Willow St., a building that dates to 1910, when Waterbury was a booming manufacturing center and the multifamily neighborhoods surrounding Willow Street thrived. As Vanguard prepares to renovate the property, city officials are continuing efforts to improve the lower Willow Street neighborhood, which has struggled with crime, blight and other quality-of-life issues. The area has seen a heightened presence from police, city health agents, public works crews, zoning officials and others following two shootings last summer, including one incident that led to the death of a 17-year-old girl. Last August, the city parked its mobile command post in the parking lot of a mini mart across from 174 Willow St. The command post is staffed by an officer at all times, with two additional officers assigned to patrol the immediate neighborhood around the clock. “We’ve just had a lot within a very small area,” Waterbury Mayor Paul Pernerewski said. “So, there’s been a really great amount of attention paid to it to try to get services in there to make sure people see the visibility of what’s going on.” Pernerewski said residents have told him they feel much safer, and that the city’s current effort differs from previous crackdowns because officials have maintained a long-term presence in the neighborhood. Police responded to 32 calls at 174 Willow St. during the first five months of 2025, ranging from burglary and domestic disputes to drug complaints. During the same period this year, with the residential units vacant, officers responded only twice. Pernerewski and Police Chief Fernando Spagnolo recently met with Stein and Opuszynski to discuss establishing a permanent citizen service center in one of the Willow Street building’s three vacant storefronts, giving police and other city departments a more permanent neighborhood presence while providing residents easier access to municipal services. Pernerewski said private investment will be critical to sustaining the neighborhood’s progress. “You look at investors like this who are willing to come in and redevelop these properties,” Pernerewski said. “It has a cascading effect, right? Other people will see the same thing, and they start to be willing to make the investments as well.”