ACRES Capital Corp. has originated an approximately $33 million loan to fund the conversion of One Atlantic, a historic, nearly 94,000 s/f mixed-use office and retail property, into a 77-unit multifamily building with ground-floor retail.
The loan is provided to Stone Harbour Capital, a locally based real estate private equity firm with expertise in the Stamford market, and carries a term of 36 months.
“One Atlantic has enormous potential for a repositioning, as its prime, downtown Stamford location makes it perfectly suited for a multifamily conversion,” said ACRES managing partner, originations Marty Reasoner.
“Fueled by its proximity to Manhattan, the recent population surge in Stamford has directly influenced its multifamily market, leading to low vacancy and an ideal opportunity for high-quality apartment units. Stone Harbour’s strong sponsorship and local experience will ensure that One Atlantic can provide value to a variety of residents.”
Located at 1 Atlantic Street, the property sits directly adjacent to the University of Connecticut’s growing Stamford campus, and is a walkable distance from Stamford Station, which offers a 45-minute commute to Manhattan’s Grand Central Station.
The property’s ground-retail component will be transformed to include multiple contemporary retail storefronts. The existing street-level windows will be replaced by five sets of double doors and visible signage, using the building’s longer Broad Street side as an entry point for the first time following approval from Stamford’s Historic Preservation Advisory Commission.
The sponsors seek to create a unique Stamford dining and nightlife experience in the property’s basement space, and are currently in talks with several prominent food hall managers and operating companies.
Stone Harbour principal Rick Aurilio stated, “The professional team at ACRES, led by Marty Reasoner, quickly understood the complexities associated with the conversion process and stepped up to deliver a customized loan package ideally suited to meet the project’s objectives. We look forward to working with their hands-on servicing team to deliver the new Shoppes and Residences at One Atlantic to the Stamford marketplace.”
The multifamily market in Stamford’s Central Business District (CBD) has enjoyed a significant uptick as many young professionals and others seeking more affordable living have elected to relocate from primary to secondary markets.