A real estate investment group has completed its purchase of a New Haven waterfront office tower, buying out its partner for $14 million and taking full control of the property.
In a deed recorded Jan. 21, the Knights of Columbus sold its remaining stake in the 261,465-square-foot, nine-story office building at 545 Long Wharf Drive to Water Street Properties, a New Haven-based real estate investment company.
Water Street had acquired a stake in the 1988-vintage building in late 2024 for an undisclosed sum and relocated its headquarters from Guilford to the Long Wharf address. The 2024 agreement allowed the company to eventually purchase the remaining interest in the property.
The $14 million purchase recorded in January does not include the undisclosed cost of Water Street’s earlier stake, said Todd Taylor, managing partner of Water Street Properties.
Taylor said the firm acquired the property at what he described as an attractive valuation, citing the building’s waterfront setting, on-site parking garage and access to Interstates 91 and 95.
Water Street, working with the Knights of Columbus, has already undertaken extensive and ongoing upgrades to bathrooms, the lobby, conference rooms and other common areas. A penthouse executive lounge will be completed in about a month, and an upscale steakhouse will open on the ground floor late this year or early next, Taylor said.
“We’re an experienced management company and we have a strategy to position this as a premier office building,” Taylor said.
The building’s occupancy has increased significantly, rising from roughly 40% when Water Street first became involved to about 89%, including signed leases for tenants scheduled to move in later this year following fit-out work, Taylor said. He said occupancy could reach 95% by year-end.
Taylor attributed the leasing gains to more active property management and the firm’s ability to complete tenant improvements through its in-house construction arm, Water Street Construction.
Taylor also credited Evan O’Brien, managing director at Cushman & Wakefield, who marketed the building and represented the Knights of Columbus in the transaction, while also recruiting prospective tenants that have nearly filled the property.
New tenants recruited over the past 14 months include bioscience company Celldex Therapeutics, which leased about 40,000 square feet, along with law firm Kennedy, Johnson, Schwab & Roberge and construction, development and property management company Fusco Corp. Ameriprise and Morgan Stanley Financial Advisors have also extended their leases.
“It’s one of the best stories in New Haven from a Class A office standpoint,” O’Brien said.
O’Brien said the building’s recent performance reflects continued demand for Class A office space in New Haven, particularly from tenants tied to Yale University, Yale New Haven Hospital and the region’s life sciences sector.
“There is serious buzz down here,” O’Brien said. “There is a ton of culture in New Haven.”
The Knights of Columbus purchased the property for $12.81 million in 2020, shortly after a foreclosure. The organization initially acquired the building to support its information technology operations but later determined it required less space following shifts in workplace usage.
The Knights of Columbus continues to occupy approximately 32,000 square feet, or one full floor. As part of the sale, the organization also provided a $20.9 million loan to Water Street Properties.
Taylor said the financing supported both the ownership buyout and capital improvements.
“The Knights have been a fantastic partner through this whole process, really a great organization to work with,” Taylor said.
