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New Haven Sees Dramatic Upturn In
Rental Apartment Development The prevailing trend in downtown New Haven is the dramatic upturn in the development and redevelopment of rental apartments. While last year's refurbishment of the Strauss Adler building has been perhaps the most conspicuous example, many other locations can be cited as well. For example, the owners of 900 Chapel Street, a 13 story office tower, have converted floors 3 through 7 into 33 apartment units. They currently have another 75 units under construction and slated for opening in 2004 in the rear of the building on the second floor. Across the street on the southeast corner of Church and Chapel, local developer C.A. White is converting three attached office buildings into about 85 apartment units also scheduled to open for 2004. Two blocks north on Church and Wall Streets a New York developer acquired the former SNET headquarters, a beautiful art deco tower, renamed it The Eli and built out about 140 rental units that are now leasing up. Two blocks south of the New Haven Green at 80 Temple Street is the former United Illuminating headquarters. This 115,000 square foot building was purchased, after more than a decade of vacancy, by another New York developer who is now in the process of installing approximately 45 rental units in addition to a multi-screen "indie" movie theater and ground floor retail. What's even better news is that the trend is not limited to downtown. In a section of Fair Haven along the waterfront just east of the Grand Avenue Bridge (now being referred to as Dragon Point), a developer has been buying multifamily homes and comprehensively renovating them. He has acquired nearly 40 units. In Wooster Square, a long-vacant industrial building is in the process of a conversion to residential apartments. What's even more encouraging for those of us who are cheering for New Haven is that rampant growth is breaking out of the residential sector, and is finding its way into retail. Retail redevelopment has marched eastward on Chapel Street all the way towards State Street and rents have started to creep upwards. We see more triple-net deals happening in areas like government center on Orange Street when few-to-no triple net deals occurred in those areas just two years ago. We also see large retail projects like the former Chapel Square Mall taking shape. Ann Taylor Loft, the project's first retailer, is now open and Cold Stone Creamery is set to open this Spring. Many more local and national retailers are contemplating space there. Perhaps the jewel in the crown of New Haven redevelopment is occurring at New Haven Harbor, where IKEA is constructing a 310,000 square foot store that is expected to open in July of this year. Bottom line, as of late winter, 2004, growth in New Haven real estate is strong. Redevelopment is sustaining itself - a sure sign that strong demand across all sectors continues. Please feel free to contact us if you would like more information on Greater New Haven market trends. |