Mayor Luke Bronin is requesting a tax abatement for a downtown Hartford apartment building that is in the process of being sold to new ownership with plans to make at least $350,000 in renovations to the property.
Bronin has asked the city council to approve a 10-year tax abatement to support the 70 units of rental housing located at 410 Asylum St., an apartment building known as “The Hollander.”
The former office building was converted to apartments in 2009 by New York nonprofit Common Ground, which has since changed its name to Breaking Ground.
According to Bronin’s tax abatement request, Contour Holdings 1 LLC has entered into a purchase and sales agreement to acquire the property. The sale is targeted to be completed by August 2023.
Contour Holdings is controlled by Timothy Henkel, who has a Kingston, Pennsylvania business address, according to state records. Patrick J. Brala is listed as the LLC’s business contact, according to a registration form filed with the Secretary of the State’s office.
Brala is the chief financial officer of Pennrose, a multifamily development and residential property management company that has been an active investor in Hartford. Henkel is listed as a president of Pennrose.
Pennrose and Hartford-based the Cloud Co. are currently under contract to purchase two state office buildings on Trinity Street, with plans to convert them into apartments.
Calls and emails to Pennrose and Breaking Ground officials weren’t immediately returned Thursday morning.
The Hollander apartments property currently has annual assessed taxes of $190,463.34, or $2,720.90 per unit.
Bronin’s proposed tax abatement would lower the property tax for 10 years to:
- Year 1 – $147,000.00 or $2,100/unit
- Year 2 – $148,600.00 or $2,1223.86/unit
- Year 3 – $149,800.00 or $2,140/unit;
- Year 4 – $151,100.00 or $2,158.57/unit
- Year 5 – $152,100.00 or $2,172.85/unit
- Year 6 – $152,900.00 or $2,184.28/unit
- Year 7 – $153,500.00 or $2,192.86/unit
- Year 8 – $153,900.00 or $2,198.57/unit
- Years 9 & 10 $154,000.00 or $2,200/unit
In exchange for the tax abatement, Contour Holdings 1 would maintain 56 of the 70 units as affordable. Contour would also agree to invest at least $5,000 per unit, or $350,000 overall in property renovations during the first three years of the tax deal.
