City Close to Selling Pearl Street Tower To Apartment Developer

by Categorized: Downtown Hartford, Hartford Redevelopment Date:

The city is closing in on the sale of a vacant, 12-story office tower in downtown Hartford that is key to a housing project on the corner of Pearl and Trumbull streets.

The city-owned building at 95-101 Pearl St. would be connected to the neighboring, 7-story office building at 111 Pearl St., also vacant, and be redeveloped into 200 market-rate apartments. The buildings would be joined by a common lobby and also included street-level retail space.

Two vacant office buildings in downtown Hartford slated for redevelopment. Photo by Kenneth R. Gosselin/kgosselin@courant.com

Two vacant office buildings in downtown Hartford slated for redevelopment. Photo by Kenneth R. Gosselin/kgosselin@courant.com

The city council is expected to vote Dec. 9 on selling 95-101 Pearl for $500,000. The sale also is accompanied by a tax-fixing agreement.

A partnership led by Pennrose Properties of Philadelphia has proposed the $43 million redevelopment. The partners are seeking about $14 million from the Capital Region Development Authority, which is using $60 million to promote housing projects in downtown Hartford.

Pennrose’s local partners include Martin J. Kenny, who built the neighboring Trumbull on the Park apartments; Alan Lazowski, the chief executive of Hartford-based LAZ Parking; and Sanford Cloud, who redeveloped the old University Club on Lewis Street.

The 15-year tax-fixing agreement for the two Pearl Street properties calls for real estate taxes to be fixed at $26,000 during construction, expected to take two years. After the apartment building opens, taxes would be set at six percent of gross revenues through the first seven years and then increase every year, reaching 11 percent by the fifteenth year.

The developers have an agreement to purchase 111 Pearl from the Connecticut Finance Housing Authority for $500,000.

In addition, the city has worked out an extension of a tax-fixing agreement for nearby Trumbull on the Park apartment building and a 15-year agreement on the building’s 603-space parking garage.

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