A slowdown in Hartford apartment construction following the onset of the pandemic has now turned into a boom that will see thousands of units brought online in 2022 and 2023, said Martin Kenny, CEO of Hartford-based real estate development and investment firm Lexington Partners.That could be a boon for creating a vibrant city and finally […]
Get Instant Access to This Article
Subscribe to Hartford Business Journal and get immediate access to all of our subscriber-only content and much more.
- Critical Hartford and Connecticut business news updated daily.
- Immediate access to all subscriber-only content on our website.
- Bi-weekly print or digital editions of our award-winning publication.
- Special bonus issues like the Hartford Book of Lists.
- Exclusive ticket prize draws for our in-person events.
Click here to purchase a paywall bypass link for this article.
A slowdown in Hartford apartment construction following the onset of the pandemic has now turned into a boom that will see thousands of units brought online in 2022 and 2023, said Martin Kenny, CEO of Hartford-based real estate development and investment firm Lexington Partners.
That could be a boon for creating a vibrant city and finally catching up with a long-unsatisfied demand, Kenny said. On the other hand, he worries that it could be too much all at one time.
“One thing I worry about with downtown Hartford is we have so much going on right now, let’s make sure the marketplace can properly digest what’s coming through,” Kenny said. “The idea of opening all of Bushnell South right now for additional proposals seems a little aggressive. We need orderly growth. We can’t have it where there are apartment communities on every corner all of the sudden, because that will create havoc.”
The Bushnell South master plan calls for 1,200 apartments, new public gathering spaces and more than 63,000 square feet of retail, cultural and commercial space on blocks of parking and underused buildings just south of Bushnell Park. Spinnaker Real Estate Partners – a major partner in that plan – is pursuing a $63.3 million redevelopment of a former state office building at 55 Elm St., within the eastern edge of the development zone. Spinnaker plans to build 278 apartments as well as retail space on that site.
The master plan shows Spinnaker eventually building another 456 housing units on parking lots just south of 55 Elm St.
According to a recent analysis by Lexington, there are 700 Hartford apartment units under construction, and another 2,889 units that have been proposed or are in planning. Hartford’s average monthly rents are up 10% over the past year, from $1,245 to $1,374.
That’s still behind New Haven. Hartford projects also require construction assistance in the form of tax relief and gap financing through the Capital Regional Development Authority, said Kenny, who is a partner in the $100 million redevelopment of Pratt Street, which will yield several hundred new or refurbished apartments.
Overall, Kenny and partners, including LAZ Parking’s Alan Lazowski, own more than 550 apartments downtown.
Kenny attributed the differences between Hartford and New Haven to the Elm City’s blossoming biotech innovation ecosystem and the presence of Yale, which is both assisting the emergence of that sector and has long provided a stream of students and staff with money to spend. Yale’s presence also softened for New Haven the blow that COVID-19 dealt to restaurants and other merchants in Hartford, he said.
But Hartford has strengths on which to build, including proximity to Bradley International Airport, a still-robust insurance sector and strong colleges and universities, Kenny said.
“There is a lot to work with and sell,” Kenny said.
