Kuchma Corp.’s Bijou Square portfolio includes a renovated theater and office space and newly constructed apartment buildings in downtown Bridgeport.
One of the most active developers in downtown Bridgeport, Phil Kuchma sees out-of-state real estate investors starting to take an interest Connecticut’s most populous city. And he views them not as competition, but confirmation of Bridgeport’s prospects.
“The smart money is coming in and those are owners and developers that have a lot of experience and can choose where they want to be,” Kuchma said. “That’s a very encouraging thing to the locals like myself, and it’s also something the rest of the real estate development segment is looking at and saying, ‘If it’s good enough for this company, it’s good enough for me.’ And lenders have more confidence.”
Time Equities Inc., a New York City developer that owns nearly 32 million square feet of real estate, has focused on Bridgeport acquisitions in recent months. In February, it bought the 575,000-square-foot Bridgeport Trade and Technology Center for $13.85 million, its third Bridgeport acquisition in six months.
Unlike other Northeast cities that razed aging properties during urban renewal’s 1960s heyday, Bridgeport retained most of the multistory buildings in its downtown. That provided a foundation for Bridgeport-based Kuchma Corp., which has been active in the city for four decades and currently owns 10 downtown properties occupied by office tenants, restaurants, retailers and apartment renters.
Dense, walkable downtowns’ reviving appeal as places to live and work have presented opportunities for mixed-use projects, but entertainment is a crucial component of attracting visitors to overlooked neighborhoods, Kuchma said. His firm acquired the then-defunct Bijou Theatre and redeveloped the 200-seat venue to host films and live music in 2013. Kuchma Corp. also acquired a series of adjacent mixed-use buildings and branched out into new development. An 84-unit apartment building completed in 2011 at 323 Fairfield Ave. was the first new development in downtown Bridgeport in almost two decades. Kuchma Corp. has completed two other ground-up developments of apartment buildings, at 285 Golden Hill St. and 1208 Broad St., each containing 12 units.
Downtown Bridgeport’s designation as a federal urban enterprise zone provides incentives in the form of property taxes that can be phased in over a seven-year period, easing the financial burden on developers early in a project as they build occupancy and rental income.
And a waiver of the city’s then-requirement of 1.5 parking spaces for each housing unit helped reduce development costs, Kuchma said. The city subsequently eliminated minimum parking requirements downtown.
In February, Time Equities Inc. bought the 575,000-square-foot Bridgeport Trade and Technology Center, a multitenant facility, for $13.85 million and plans investments in amenities. Image courtesy of Google Maps.
New Player Sees Potential
Time Equities Inc. executives see potential for growth of Bridgeport’s commercial and residential markets, having completed three acquisitions in the past six months that comprise more than 1 million square feet of commercial space and 176 apartments.
In addition to its purchase of the Bridgeport Trade and Technology Center (BTTC), which also includes 8.3 acres for future development, TEI last fall acquired the 269,080-square-foot Bridgeport Innovation Center for $7.9 million. It followed that up in January with the $21.7 million purchase of three downtown apartment buildings containing 176 units and 100,000 square feet of office and retail space.
The five-story BTTC complex was originally developed as the headquarters of the Singer sewing machine factory before being converted into multitenant space.
Currently 78 percent occupied, the property’s tenants include distributors, commercial kitchens, antique dealers, Park City Prep Charter School and New England Tractor Trailer Training School. The existing buildings will undergo deferred maintenance, said Max Pastor, director of acquisitions and senior counsel for TEI Inc. The new owners are looking to upgrade amenities, including bringing in food operators and upgrade common areas, he said.
The firm has signed letters of intent with two potential tenants for nearly 20,000 square feet, said Brian Soto, TEI’s director of acquisitions and asset management. Approximately a third of the tenants are on month-to-month leases, and TEI plans to offer spaces for lease on flexible terms with rents starting at $6.95 per square foot for ground floor spaces and $6.50 per square foot on the upper floors.
“We’ve continued to see strength in the industrial market throughout Connecticut and New England, and we hope to capitalize on the momentum,” Pastor said.
