Image courtesy of JLL

A Stonington mixed-use development will add 160 apartments after receiving $41.5 million in financing from Liberty Bank.

Stonington Village developer READCO has begun construction of the six-building complex, which will include both market-rate and income-restricted units. The housing replaces a recently demolished Regal Cinema that closed in 2022.

Located near the Rhode Island line, the 85 Voluntown Road property includes a Stop & Shop Supermarket-anchored retail plaza.

The residential buildings will contain a mix of unit sizes ranging from studios to 3-bedroom units, including a 20 percent middle-income component. The project also includes a clubhouse, pool and 10,000 square feet of ground-floor retail space.

JLL capital markets’ debt advisory team arranged the 5-year, fixed-rate loan on behalf of READCO, an Old Lyme real estate development firm.

“Southeastern Connecticut is poised for strong apartment rental demand growth due to increasing job opportunities, particularly at Electric Boat, which is driving an influx of workers to the region,” JLL Managing Director Henry Schaffer said in a statement. “With a relatively short supply of new apartment stock on the horizon, we expect demand to continue to outpace supply in the region.”

The project team includes general contractor KBE Building Corp., project manager Colliers and property managers Trio Properties.