Dakota Partners has transformed a century-old building into mixed-income housing in Hartford, Conn.
Capitol Lofts offers 32 low-income housing tax credit (LIHTC) units and 89 market-rate units.
Built in 1915, the structure has had several owners over the century, most notably Pratt & Whitney, which used the facility as a machine shop in the 1920s. The facility also served as a warehouse and was later occupied by the Hartford Office Supply Co. until it eventually became vacant in 2005.
The acquisition, rehabilitation, and adaptive reuse of Capitol Lofts brings critically needed affordable housing to the Frog Hollow neighborhood, one of the poorest urban districts in Hartford with a household median income of about $26,000, according to project partners.
The new housing is an important catalyst for the redevelopment of the neighborhood and a milestone for the Capital Region Development Authority, which has a goal of building 2,000 new downtown Hartford rental units by 2018.
Capitol Lofts offers nine one-bedroom and 14 two-bedroom LIHTC units set aside for households who earn up to 50% of the area median income; there are also 32 one-bedroom and 57 two-bedroom market-rate units. All units have modern appliances including refrigerators, dishwashers, central air conditioning, and walk-in closets. Community amenities include central laundry, community game and movie rooms, and an equipped exercise facility that includes studio space for yoga and Pilates.
The total development cost was $36.5 million, including $1.5 million allocated for environmental remediation. Capitol Lofts was awarded $2.2 million in federal LIHTCs by the Connecticut Housing Finance Authority and also qualified for $6.46 million in federal historic tax credits. Alden Capital Partners facilitated the syndication of the housing and historic tax credits through its proprietary investor fund, Alden Capital Partners Tax Credit Fund 18, with Aetna Insurance.
“Capitol Lofts is an important development for Hartford in that it preserves a historic structure and creates affordable and market-rate housing in a neighborhood that lacked new quality housing,” said Dana Mayo, executive vice president at Alden Capital Partners, adding that Aetna's investment was integral to the project.
The team also included general contractor Maggiore Construction and Crosskey Architects.
