A New York-based developer has proposed turning two seven-story office buildings in Norwalk into a 300-unit apartment complex, according to plans filed with the city.
Saber-Hightower — a Briarcliff Manor, New York-based developer active in Fairfield and Westchester counties — plans to transform the 328,774-square-foot building at 101 Merritt 7 and the 501,410-square-foot building at 201 Merritt 7.
The development is planned to include 56 studio apartments, 182 one-bedroom units and 62 two-bedroom units, according to the application. In compliance with city regulations, 27 apartments would be designated as workforce housing.
A three-level parking garage will remain on-site to provide 1,061 parking spaces. The garage’s top deck will be converted from an asphalt parking area with 163 spaces to a 55,000-square-foot outdoor resident amenity space with, among other things, a pool, lawn area, dog park, playground, zen garden, putting green and a pickleball court.
Indoor amenity space will include a gym, coworking area, playroom and demo kitchen.
The developer has filed the application with the city under the name Lofts M7 LLC, which is controlled by Saber-Hightower co-founders Martin Berger and Greg Belew. Lofts M7 LLC will complete its purchase of both buildings from Merritt 7 Venture LLC if the city approves the proposal, the application said.
Merritt 7 Venture LLC — controlled by Fairfield Investors Inc. and the New York State Teacher’s Retirement System — bought 101 Merritt 7 in 1995 and 201 Merritt 7 in 2004, according to the city’s property records.
The properties cover a total of 6.48 acres and, combined, are appraised at $34.7 million and assessed at $27.4 million. 101 Merritt 7 was built 1980, while 201 Merritt 7 was built in 1982.
Calls to Saber-Hightower — whose portfolio includes The Smyth, a 17-story, 414-unit development in downtown Stamford — were not immediately returned. It has five other residential properties in New York and New Jersey, according to its website.
Both buildings, which contain 56 offices total, are part of a six-building Merritt 7 office complex along Norwalk’s Main Avenue that the late developer Albert D. Phelps completed in 2002.
“Although somewhat of a pioneer at the time, Mr. Phelps’ success with Merritt 7 galvanized additional investment in this area resulting in the active corridor that exists today,” the application said. “However, the demand for suburban office space has dwindled as companies opt for more urban locations.”
The pandemic further hurt office demand as companies transitioned to remote and hybrid work models, making long-term leasing of Merritt 7’s 1.4 million square feet “unsustainable,” as the need for more housing continued to grow, the application said.
“Thus, converting Buildings 101 and 201 to multifamily housing serves the dual purpose of facilitating the development of much-needed housing while increasing the demand for the office space that remains,” it said.
Commercial real estate brokers have said that Fairfield County’s office market may be “overbuilt” by as much as 3.5 million square feet.