Meadow & West Main Apartments

Investment Summary

• Sky Realty Group is pleased to present the Downtown Waterbury Mixed-Use Portfolio, a 27-unit investment opportunity consisting of 21 residential apartments, 6 street-level retail spaces, and a dedicated parking lot located in the heart of Waterbury’s Central Business District.
• The offering comprises three parcels improved with two well-maintained brick mixed-use buildings totaling 26,948 square feet, providing investors with a diversified income stream supported by government-assisted residential units and established commercial tenancy.
• 343 West Main Street is a four-story, 20,428-square-foot brick building featuring 17 apartments (1 one-bedroom, 14 two-bedroom, and 2 three-bedroom units) and four retail spaces occupied by an insurance agency, cell phone retailer, hair salon, and neighborhood bar & grill.
• 493 Meadow Street is a three-story, 6,520-square-foot brick building consisting of 4 apartments (2 two-bedroom and 2 three-bedroom units) and 2 retail spaces occupied by an appliance retailer and beauty salon. Residential tenants are separately metered and pay for gas heat, hot water, and electricity, reducing operating expenses.
• The residential component benefits from participation in the Mod Rehab Housing Authority Program, providing stable, government-backed rental income, strong collections, and historically high occupancy supported by an established tenant waiting list.
• The retail tenancy is anchored by long-term neighborhood businesses, including an appliance retailer (approximately 10 years), insurance agency (approximately 20 years), and bar & grill (approximately 30 years), providing durable cash flow and tenant stability.
• Recent capital improvements include partial roof replacements completed in 2022 and the installation of 15 new high-efficiency heating systems, significantly reducing future capital expenditure requirements.

Enterprise Zone

• Being located within an Enterprise Zone, an economic development program designed to encourage business investment, job creation, and redevelopment. Qualified businesses undertaking eligible expansion, rehabilitation, or new construction projects may have access to a variety of state and local incentives, which can include property tax abatements, corporate business tax credits, and other economic development programs administered by the state and municipality

Opportunity Zone

• This portfolio is also situated in a federally designated Opportunity Zone, a program established to encourage long-term private investment in designated communities. Subject to investor eligibility and applicable tax regulations, qualifying investments may be eligible for significant federal tax advantages, including the potential deferral and reduction of certain capital gains taxes, as well as the potential exclusion of gains generated from a qualifying Opportunity Zone investment held for the required period.

Financing Considerations

• Based on the current unit mix, income composition, and square footage, the property appears to be a strong candidate for conventional agency financing, subject to lender underwriting, appraisal, and confirmation that the Mod Rehab contract and commercial component satisfy program requirements. The combination of approximately 74% residential income, 67% residential floor area, and government-backed rental assistance aligns well with the profile of many agency-financed mixed-use multifamily assets.

City Overview

• Waterbury, Connecticut is the tenth-largest city in the state and serves as the economic, healthcare, educational, and governmental hub of western New Haven County. With a population of approximately 115,000 residents and a regional labor force drawing from surrounding municipalities, the city continues to benefit from ongoing public and private investment, expanding employment centers, and a strategic location at the intersection of Interstate 84 and Route 8.
• This portfolio is ideally positioned within Downtown Waterbury's Central Business District, placing residents and commercial tenants within walking distance of major employers, government offices, retail amenities, restaurants, financial institutions, and entertainment venues. The surrounding area is anchored by the University of Connecticut Waterbury Campus, Post University, Waterbury Hospital, and Saint Mary's Hospital, collectively supporting thousands of jobs and generating consistent housing demand.
• Downtown Waterbury has experienced continued revitalization through streetscape improvements, adaptive reuse projects, infrastructure investments, and ongoing redevelopment initiatives aimed at strengthening the city's urban core. Recent public investments have enhanced pedestrian connectivity, public spaces, and transportation infrastructure, while incentive programs, including federally designated Opportunity Zones and local Enterprise Zones, continue to attract private capital and encourage long-term redevelopment.

Regional Overview

• The property also benefits from exceptional regional accessibility. Interstate 84 and Route 8 provide direct connections to Hartford, New Haven, Danbury, and Fairfield County, while the Waterbury Union Station offers Metro-North commuter rail service to Bridgeport with connections into New York City, along with local and regional bus service, making the area accessible to both commuters and employers.
• Supported by diverse employment drivers, government-backed redevelopment initiatives, and a highly accessible downtown location, Waterbury continues to offer investors an attractive combination of stable rental demand, economic growth potential, and long-term value appreciation within one of Connecticut's most affordable urban markets.