KeyBank Leads $56M Financing to Redevelop Vacant Connecticut Factory
In a public-private deal, Trinity Financial plans to turn former factory in Meriden into 82 units of affordable housing
By Brian Pascus June 20, 2024 12:44 pm
reprints
Boston-based Trinity Financial has secured $56 million in financing to redevelop a vacant industrial building at 85 Tremont Street in Meriden, Conn., into an affordable apartment complex, Commercial Observer has learned.
Approximately two-thirds of the financing for the project is coming from Low-Income Housing Tax Credit equity, and Federal and State Historic Tax Credit equity.
Keybank (KEY)’s Community Development Lending and Investment (CDLI) arm is providing nearly $25 million in construction financing in the deal, while the Connecticut Housing Finance Authority is providing $13.4 million, the Connecticut Department of Housing $9.5 million; $4 million is coming from the Connecticut Department of Economic and Community Development, while the neighborhood of Brownfields is contributing $1.5 million.
“At KeyBank, we are dedicated to helping the communities where we live and work thrive,” said Anna Belanger, KeyBank CDLI relationship manager. “This project will drive economic revitalization for the community.”
The city of Meriden sits in the center of Connecticut, about 20 miles south of capital Hartford and 22 miles north of New Haven, home to Yale University.
Dan Drazen, vice president of development at Trinity Financial, spotted the potential adaptive reuse of 85 Tremont — a historic 123,000-square-foot industrial building once used by the now-defunct Aeolian Company, a company that specializes in building musical instruments — back in 2021.
The goal is now to maintain the original brick exterior and turn the building into 82 units of affordable housing across income levels. A total of 71 units will house tenants with incomes ranging from less than 25 percent of the area median income (AMI) to at or below 80 percent of AMI; 14 units will include support services for low-income tenants; and the building will also feature 11 market-rate apartment units. All units will be either one-bedroom or two-bedroom apartments.
“Investment in affordable housing and community revitalization allows our Connecticut residents to live in high-quality housing with affordable rents,” said Connecticut Housing Commissioner Seila Mosquera-Bruno in a statement.
The redevelopment plan also includes a $2.5 million redevelopment of a nearby Little League complex and the construction of two new turf ballfields, new parking lots, and stormwater drainage. Additional improvements include redeveloping two vacant city lots into a small park with a basketball court.
“Together, these initiatives represent a $58.5 million public-private investment poised to revitalize nearly an entire city block in North Meriden, fostering a more active, vibrant community,” said Meriden Economic Development Director Joe Feest. “We have had a great working relationship with Trinity and look forward to seeing this project completed.”
Brian Pascus can be reached at bpascus@commercialoberver.com
