Shelbourne Global has asked for an $8 million loan from the Capital Region Development Authority for a mixed-use conversion of the former Fuller Brush industrial complex in Hartford’s North End.
Shelbourne – one of the most prominent developers in Hartford – estimates it will cost $31 million to develop the residential portion of the project on the 12.5-acre property it purchased in late 2020.
City leaders are generally supportive of the project, although CRDA Executive Director Michael W. Freimuth said the agency has questions about Shelbourne’s budget proposal and is not quite ready to put it to a board vote. Freimuth said he is supportive of the project, although details need to be ironed out, which is not unusual.
CRDA staff aren’t certain if the proposed construction budget is adequate and or if the rents Shelbourne proposes to charge will cover development costs.
“We think it would be an interesting and fun project, but we are in the number-crunch phase,” Freimuth said Friday following a meeting with CRDA’s Housing and Neighborhood Committee. “We need to get more comfortable with the construction forecast and we are not at the moment.”
Freimuth said CRDA staff will visit the complex at 3580 Main St. in the coming week to get a better sense of potential costs.
The agency has also asked Shelboune to adjust the revenue stream for the project.
As of January, Shelbourne proposed to use a $17 million conventional loan, $8 million from CRDA, a $1.5 million state housing grant and $5 million of equity.
Freimuth said Friday CRDA would rather Shelbourne borrow $7 million from the agency. The agency also wants Shelbourne to tap state and federal historic tax credits to pay that loan down to $4.5 million as the project reaches completion.
Michael Seidenfeld, Shelbourne’s chief operating officer, said he does not want to discuss terms through the media but touted the project’s benefits.
“Shelbourne is very committed to bringing quality housing and a transformative, mixed-use project to a crucial neighborhood of our city, which has been traditionally underserved and needs economic vibrancy,” Seidenfeld said. “We believe this project will bring jobs, residents and a much better quality of life to the neighborhood.”
Seidenfeld said Shelbourne is working closely with Mayor Luke Bronin, other city officials, the CRDA, members of Hartford’s legislative delegation and community groups to realize the redevelopment. He anticipates presenting a final plan at the next meeting of CRDA’s Housing and Neighborhood Committee on April 1.
Shelbourne paid $4.3 million for the Fuller Brush complex. The property hosts 10 buildings with a combined 326,000 square feet. In January, Shelbourne presented CRDA with a plan for 133 one-bedroom apartments, 26 two-bedroom units, 7,000 square feet of amenity space and room for office and manufacturing uses.
Based in New York, Shelbourne has either purchased, or been partner in the purchase of more than $250 million in Hartford real estate in the past several years, according to the company. Shelbourne said it has spent more than $30 million improving its Hartford properties.
In mid-2020, Shelbourne and Axela group closed a $22 million purchase of the former Red Lion Hotel at 50 Morgan St., with plans for an $8 million renovation.
According to Shelbourne, conversion into apartments had begun, and the new owners would complete the process, resulting in 273 units.
Shelbourne is a major partner in the redevelopment of the Pratt Street area downtown, where it is working on a mixed-use redevelopment of 398,484 square feet. It is also the largest landlord in downtown Hartford’s office market, owning four office towers.
