Image courtesy of Ryan Companies

A life science development planned for a Branford industrial park has been shelved after the withdrawal of a joint venture partner.

Minneapolis-based Ryan Cos. announced last April that it would partner with industrial park owner Belfonti Cos. of Hamden and A Secondino & Son Inc. on the estimated 500,000-square-foot development on portions of a 120-acre site near Interstate 95.

Michael Belfonti, CEO of Hamden-based Belfonti Cos., confirmed on Tuesday that Ryan Cos. has ended its involvement in the joint venture.

Ryan Cos. was not immediately available for comment, but Belfonti told The Comercial Record that lingering high interest rates and construction costs have put pressure on the financial feasibility of many development projects.

“It’s another challenge: over the last 24 to 36 months, materials and labor have gone up around 25 percent,” Belfonti said. “That’s significant.”

In April 2023, developers announced the proposal to develop the site to provide a suburban location for expansion of the life science industry. Major projects in New Haven by Winstanley Companies and Twining Properties have sought to leverage the proximity to Yale School of Medicine and a growing biotech startup scene.

But a steep decline in venture capital investment in the life science industry has stunted expansion and leasing activity across the nation.

Belfonti said his firm is now exploring other uses for the development parcels off East Main Street and Sycamore Way, including discussions with a national developer interested in building a hotel and conference center.

Belfonti Cos. is proceeding with another major development project in Rocky Hill, where it broke ground last fall on the redevelopment of the former Ames discount store headquarters property into 213 apartments and 20,000 square feet of retail and commercial space.

The company also will begin leasing this spring on a $100 million, 209-unit apartment tower under construction at 646 Ocean St. in Revere, Massachusetts.