Stuck in a building erected by World War I veterans in the 1920s, members of the American Legion in West Hartford were facing an expensive overhaul just to keep the place up to code.
Then Blue Black Square came up around them, and they sold the building for $2.2 million.
“It was a good deal for us,” said Legion member and former commander Richard J. Hennessey.
Following that purse, the veterans group that funds two local baseball teams is now aiming to secure a long-term funding source by leasing the first-floor of its new building, preferably to a bank. But with the adjacent Blue Black Square development pegged for a Nov. 1 opening, the clock is ticking for the Legion as it tries to find a tenant for its new building.
“I think it’s a good location. They’re not going to have the drive through, which I guess they all like these days, but they’re not going to get that anywhere in Blue Back Square,” Hennessey said.
Development Deal
In agreeing to leave its old place so Blue Black could come in, Hennessey said the Legion secured a new $1.1 million building, the interior of which is still under construction. Its new headquarters will be on the second floor, accessible by elevator.
Across from Whole Foods Market on Raymond Road in West Hartford Center, the building is in excellent position to benefit from the crowds expected to flock to the new restaurants, retail and a Criterion Cinemas movie theater.
But at less than 4,000 square feet, and narrowly shaped, the spot hasn’t attracted a bank branch even though Citibank, Citizens, Wachovia and others have all considered it, according to Richard L. Mahoney, chairman of RLM Co., who is handling the lease.
“We have had several false starts,” Mahoney said.
The closest came with Citibank, which plans to open six more Connecticut branches this year but ultimately backed out because although the space has a wide storefront, it lacks the depth that Citibank wanted.
“They decided that they wanted a bigger space to provide them with more presence,” Mahoney said.
Citibank does not comment on sites for potential branches.
Citizens Bank spokesman Chris Riley said his bank considered the American Legion building but got “very attractive terms” on a 3,823 square-foot site at 15 South Main St., where Citizens will open a full-service branch with two ATMs.
Mahoney said leasing the space was more difficult because the Legion had yet to secure possession of the site from developers, preventing any sort of signage or advertising on the street. Instead, Maloney has relied on his firm’s Web site and on spreading the word among brokers.
Though he and the Legion would prefer a bank, he said, he is not in discussions with any at the moment, and would consider other tenants.
Charity Source
Temporarily housed at 281 Park Rd., the legion’s membership is hoping a new tenant will not only sure up its finances, but allow it to expand programming for youth.
The organization ran about an $8,000 deficit for 2004, according to its IRS form, and closed the year with $67,000 in assets.
By becoming a landlord, the group would have to forfeit its tax-exempt status. If a lease goes through, it will owe enough real estate and lawyers’ fees afterwards that Hennessey is just hoping to break even during the first year in the new building.
“I bet we don’t see any money in the first year,” he said.
But Hennessey thinks the legion might be able to secure $50 per square foot for its new space (although other space at Blue Back is leasing for $35 per square foot) and the Legion is already making preliminary plans to possibly create two scholarship programs, one for children of members and another open to the West Hartford community at large.
“It would give us the financial basis of serving the youth of West Hartford,” he said.
He added: “It’s unusual for a veterans group to have this sort of resource.”
