Image courtesy of Beinfield Architecture

Norwalk-based developer Spinnaker Real Estate Partners is rejiggering its nearly 3-acre waterfront development in its home city.

The company received city planning permission for a mixed office-multifamily development at 108 Water Street in the city’s popular South Norwalk section.

But the project’s 83,000 square feet of “highly amenitized” office space, despite getting “highly favorable” feedback from prospective tenants, brokers and potential lenders, has turned out to be a liability.

“[A]s a result of those conversations the Applicant believes that it is unlikely to lease up the entire 83,000 sq. ft. of approved office building in a commercially reasonable period,” a Spinnaker affiliate wrote in an application filed with Norwalk city officials on Jan. 15. “Additionally, due to the vacancy risks associated with such a massive amount of office space, lenders are hesitant to provide the financing necessary to move forward with construction.”

The company’s latest application doesn’t touch the waterfront park-cum-flood-protection, the public marina, the 242 garage parking spaces, the 59 apartments, nor its two waterfront retail spaces. In addition, it keeps a 4.5-story, 28,800-square-foot office building in the three-building project’s original design.

Instead, it exchanges the remaining office space for a 130-key hotel in essentially the same building.

If approved, the project will rise on a winter boat yard and dock construction company facility.