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February 18, 2022

Weak demand for office space spurs more conversions for 900 Chapel

PHOTO | New Haven BIZ The former Chapel Square Mall building at 900 Chapel Street.
By Liese Klein

The challenges facing New Haven’s office market were on stark display as developers presented a proposal to the city’s planning commission on Wednesday.

Attorney Chris McKeon of Bershtein, Volpe & McKeon presented a plan to convert office space in the former Chapel Square Mall at 900 Chapel into residential units – including the space occupied by his own law office.

“I'm very familiar with the building, its operations and, quite frankly, its significant vacancy,” McKeon said. Office space is more than half vacant on McKeon’s floor, the 11th level of the 13-story building. The 12th and 13th floors are also half-empty. The 7th, 8th and 9th floors have already been converted into apartment units. 

The Greater New Haven Chamber of Commerce (and New Haven Biz) continue to occupy the 10th floor of the tower. 

The renovated former mall tower’s struggles reflect the national shift away from physical office space, McKeon said. “That is not unusual in office buildings throughout the country as I'm sure you would imagine or heard of in the last two years.”

Under the new plan, presented by 900 Chapel owner CSD Mall LLC, 87 new residential units will be carved out of office space. That’s in addition to the office space already converted in the tower in recent years and two new apartment floors under construction on the Church Street side of the complex, for a total of 172 residential units. 

Each floor in the tower will be home to 15 units with dedicated amenity space like a lounge and fitness center, similar to conversion plans presented to the commission three previous times.

“We know this floor plan works,” McKeon said. 

Conversion of the office areas to residential units will begin immediately on some floors, with further construction planned as leases expire. 

McKeon, who also does the leasing for the Chapel Square owner, said the pandemic added to the difficulty of leasing office space in the former mall, overlooking the New Haven Green. 

“The efforts to lease office space has been incredibly challenging over the past couple of years to say the least,” McKeon said. “This is a way to maximize the use of the building which continues to be a popular spot and desirable spot for people to want to live, being right on the Green.”

Planning commissioner and Alder Adam Marchand of Ward 25 said he anticipated more conversions of commercial spaces across the city. 

“How much office space do we need nowadays?” Marchand said. “I don't think we know the answer to that definitely, but the market shows us that what's really in demand right now is residential space.”

The conversion plan was approved unanimously. 

An image created of a planned four-story, 60-unit residential building at 142 Temple St. 

In other activity, the commission approved a series of high-end residential projects as part of a rush of proposals before the city’s new inclusionary zoning law goes into effect. The new law, set to take effect Friday, requires set numbers of affordable units in larger developments. 

Projects approved included:

  • A new four-story residential building to be constructed on top of an existing commercial building at 142 Temple St. The new 60-unit building would have frontage on Temple and Crown.
  • A new five-story complex at 291 and 309 Ashmun St./178-186 Canal St. Near Science Park. The new building would house 176 apartment units and first-floor commercial space.
  • A new five-story, 50-unit residential building to be erected at 10 Liberty St. in the Hill neighborhood. Four derelict factory buildings will be demolished to make way for the project, within walking distance of the Yale medical campus and Yale New Haven Hospital. 

Contact Liese Klein at lklein@newhavenbiz.com.

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