A developer that paid $2.1 million for a historic downtown Middletown building plans a 42-unit mixed-use apartment redevelopment.
A developer that recently paid $2.1 million for a more than century-old commercial building in downtown Middletown is moving forward with previously approved plans to convert the property into a mixed-use development with 42 apartments and two ground-floor retail spaces.
According to a deed recorded Monday, ESG 339 Main Street LLC — an entity tied to Mystic-based development and property management company ES Goodman — acquired the roughly 50,000-square-foot, three-story brick-and-masonry building on nearly half an acre at 339 Main St.
Over its long history, the building, which dates back to 1885, has served a variety of uses, including as a YMCA and as space for major retailers. The property last changed hands in 2022, when 339 Main LLC purchased it for $800,000.
That LLC, led by real estate investor David Marasow, obtained building permits to convert portions of the structure into 12 studio apartments, 28 one-bedroom units and two two-bedroom units. Marasow listed the property for sale last year and included plans for the redevelopment as part of the transaction.
The building currently houses Mexican restaurant La Boca, which occupies a 3,750-square-foot space on the first floor. ES Goodman Managing Director Eric Goodman said Monday that his company plans to refurbish an adjacent 1,600-square-foot retail space that is now vacant, in addition to building out the apartments.
Goodman said the previous owner had largely completed interior demolition. He expects the apartment build-out to wrap up and leasing to begin within one year.
Goodman said he was not certain of the project’s budget. His limited liability company has taken an $8.28 million loan from Chelsea Groton Bank for the project. Goodman said the balance of the project costs will be covered by state and federal historic tax credits.
Bradley Balletto, managing director of Northeast Private Client Group, represented the seller and procured the buyer.
On its website, ES Goodman said it has developed 190,000 square feet of space across projects totaling more than $70 million since launching in 2019. Most of those developments have been concentrated in southeastern Connecticut, with individual project budgets ranging from $8 million to $12 million, Goodman said.
Goodman said he was initially skeptical when Balletto, who represents another ES Goodman property, encouraged him to consider the Middletown investment. It fell outside ES Goodman’s typical geographic focus along the state’s eastern shore.
However, Goodman said he was “completely caught off guard” by Middletown’s downtown, citing its mix of quality restaurants, shops and proximity to the Connecticut River. The presence of Wesleyan University and Middlesex Hospital were also major draws, he said.
Middletown officials have been especially supportive, Goodman added.
“They couldn’t have gone any more above and beyond,” Goodman said. “It was almost like someone opened the holy gates and said: ‘Here is a great town, come and do business here.’”
