Two historic buildings in Hartford’s Bushnell South could add 100 more apartments

Two historic buildings near downtown Hartford‘s Bushnell Park — occupied for decades by state offices, including the Secretary of State — could be converted into 108 apartments in a $45 million project that would give a significant boost to the Bushnell South redevelopment unfolding in the area.

The state Department of Administrative Services confirmed to The Courant that a partnership of Philadelphia-based Pennrose LLC and The Cloud Co. of Hartford has the properties at 18-20 and 30 Trinity St. under contract for $1.1 million. The state-owned properties first went up for bid in 2021, about a year after state workers moved out of the buildings as part of an office space consolidation. DAS declined further comment Tuesday.

Pennrose and The Cloud Co., headed by businessman Sanford J. Cloud, are partners in the sprawling Village at Park River, a redevelopment of rundown public housing in the city’s North End. But a conversion of the two historic structures, which stand side-by-side near the corner of Elm Street just north of The Bushnell Center for the Performing Arts, would be Pennrose’s first project downtown.

Although Village at Park River is new construction, Pennrose said it often focuses on converting historic structures for housing throughout its broader Northeast market.

“It’s something that’s always been near and dear to our heart so when these properties came up, they were just gorgeous historic buildings that lent themselves so well to residential and in just a fantastic location across from the Capitol and the park,” Charlie Adams, regional vice president at Pennrose, said. “And the fact that the Capital Region Development Authority is doing this whole redevelopment of the Bushnell South area, to be part of that, to help the city rejuvenate that area, it sort of checked all the boxes for us.”

Adams said the plans also include a restaurant on the ground floor of 30 Trinity and the potential for co-working space in one of the buildings. The apartments, mostly studios and one-bedroom rentals, would be mixed-income, with 20% reserved as “affordable” for tenants meeting certain income guidelines, Adams said. Specific monthly rents are still being worked out, Adams said.

The purchase of the structures could be completed later this year, with construction starting in 2024. Once started, the conversion would take 18-24 months to complete, Adams said.

Founded in 1971, Pennrose has completed more than 350 developments and more than 27,000 rental housing units.

Financing for the conversion of the two Hartford buildings — which stand side-by-side on Trinity near the corner at Elm and just north of the Bushnell Center for the Performing Arts — is still taking shape. But it is likely to include a low-cost loan from CRDA, the quasi-public state agency that has provided loans and equity investment primarily for mixed-use housing projects. CRDA said Tuesday it has been talking with Pennrose for about six months, and the amount of the loan is still being negotiated.

The package also is expected to include a traditional bank mortgage, plus state and federal historic tax credits. CRDA also has applied for a grant through the U.S. Department of Commerce that targets economic development. The grant also could help close any funding gaps.

The conversions will be challenging given the age of the buildings, both built in the early years of the last century, plus the amount of space that can’t be reasonably carved up into apartment space. In general, construction projects also are dealing with rising borrowing costs and increases in the costs of building materials.

The Trinity Street buildings long have been considered as part of Bushnell South, anchoring its northwest corner. The buildings have been vacant since state office workers were relocated to the 1931 State Office Building on nearby Capitol Avenue after a $205 million state-taxpayer financed renovation. The renovation included the construction of a 1,007 space garage.

Bushnell South includes wide swaths parking lots to the east of The Bushnell that are envisioned for new apartments, restaurants, shops and other commercial space. The parking lots have a mix of owners, including the state and private investors.

In November, The Michael’s Organization, based in Camden, N.J, was selected by CRDA as the preferred developer of a $130 million, mixed use project on the largest of the state-owned parking lots. The planning for the 3-acre lot is still in the early stages, but preliminary plans calls for 360 rentals, including 20% “affordable,” primarily in two larger buildings over 2,500 square feet of storefront space, likely including performance space tied to the arts.

Michael’s has developed in urban center such as Boston and Philadelphia and across 37 states.

At Bushnell South’s northeast corner, the $67 million rental conversion of 55 Elm St. — the former offices of the state’s Constitutional officer, including Attorney General — is now underway. Plans by Norwalk-based Spinnaker Real Estate Partners call for 160 apartments overlooking Pulaski Circle and Bushnell Park.

Michael W. Freimuth, CRDA’s executive director, said Tuesday the partnership of Pennrose and Cloud would be a potent addition to the area’s development.

“It would be a nice complement,” Freimuth said. “We would have three developers active in Bushnell South if we can get this one done,” Freimuth said. “That’s a lot of energy to put into that area so it’s significant.”

Freimuth said the addition of another developer would strengthen Bushnell South, with further diversity of financing and the apartments and commercial space that is ultimately built.

The structures at 18-20 and 30 Trinity date back to the early days of the last century when Trinity and Elm streets were known as the city’s insurance row where insurance companies had their headquarters.

At 18-20 Trinity, the Orient Insurance Co. erected a Beaux-Arts-style structure with a classical marble facade in 1905. The building once had a circular dome.

The neighboring 30 Trinity St. was constructed a decade later by the Phoenix Insurance Co. in the Georgian Revival-style. Phoenix Insurance was a separate company from the Phoenix Mutual Life Insurance Co., which eventually constructed the “Boat Building” on Constitution Plaza.

According to The Courant’s archives, the Phoenix Insurance building was later acquired by Hartford-based Aetna in 1951. The building was sold to the state in 1962.

Kenneth R. Gosselin can be reached at kgosselin@courant.com.