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November 24, 2020

Colt Gateway developer rejiggers financing, 28 new apts. coming in ‘21

Photo | Contributed Construction on 28 new apartments at the "U-Shaped Building" in Hartford's Colt Gateway complex will begin soon, after financing was finalized.
By Matt Pilon

After public and private financing delays, construction crews could begin work as soon as next month on the $3.6 million conversion of a former magnet high school property at Hartford’s Colt Gateway into 28 apartments.

The owner-developers of the Colt complex, CG Management Co. and Chevron Corp., last week closed their financing package for the project with the Capital Region Development Authority.

The 28 market-rate apartments (up from a previous plan of 26) slated for the Huyshope Avenue property known as the U-shaped Building, which formerly housed a Capital Region Education Council school, will be mostly one-bedroom units, some with a den, as well as a handful of two and three-bedroom units.

In an interview Tuesday, CG Management CEO Larry Dooley said that he and Chevron originally had a term sheet in place with United Bank, but after Bond Commission funding took longer than expected, they faced the prospect of starting the loan process over again after United was acquired by People’s United Financial last year.

The developers decided to instead commit their own funding, and the final agreement with CRDA was signed by the parties last week.

The quasi-public agency is still committing the same $1.5 million approved by the State Bond Commission in late 2019.

Dooley had initially envisioned the project being complete by now when he was first floating it back in early 2019, but Bond Commission funding took longer than expected, and the project was further delayed as the developers settled on a financing option and then hashed out their agreement with CRDA. 

With his ducks now in a row, Dooley anticipates completing construction by July or August of 2021, with leasing to follow soon after.
Dooley said he’s feeling confident about demand for the units, after CG managed to lease all 48 newly built apartments in Colt’s nearby North Armory between April and August.

“My leasing person just crushed it,” Dooley said.

He said dens in those units proved popular, so there are more of them incorporated into the plans for the former magnet school building.
Once the 28 units are complete, Colt Gateway will have a total of 205 apartments, Dooley said.
 

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