A fourth office property in downtown Hartford owned by Brooklyn-based real estate investment firm tumbled into foreclosure recently, after efforts to sell the Main Street property proved unsuccessful earlier this year.
An affiliate of Shelbourne Global Solutions LLC — downtown Hartford’s largest commercial landlord — faces foreclosure on 330 Main St., at the corner of Charter Oak Avenue. According to court documents, $2.1 million is owed on a commercial mortgage on the nearly 60,000-square-foot structure.
TD Bank, the lender, alleges that the loan matured in late December of last year and is now in default, court documents show.
In a statement, Shelbourne said the downturn in the commercial real estate market nationwide and “the lack of leasing activity in downtown Hartford in particular, have affected some of Shelbourne’s assets in the capital city and is compelling the company to reevaluate its focus and priorities in this distressed market.”
The pandemic changed the nature of how workers divided their time between office and home. With employees now generally spending less time in the office, businesses, especially larger corporations, significantly downsized their office leases. With little significant leasing to take up the slack and lenders unwilling to take on the risk of refinancing maturing loans, office properties in Hartford and elsewhere in the state and country have fallen into foreclosure.
In addition to 330 Main, Shelbourne affiliates have come under foreclosure actions from its lenders on two major office towers in downtown Hartford: 20 Church Street, the “Stilts Building,” and Metro Center, also on Church Street. Both those properties now have court-appointed receivers, which means outside parties now control the day-to-day operations.
Another Shelbourne affiliate is embroiled in a long-running foreclosure at 57-75 Pratt St. in the heart of downtown.
In its statement, Shelbourne said there could be some movement on the other properties in foreclosure, though it did not specify which ones in its statement. The two office towers are the most likely candidates, however.
Shelbourne noted: “Additional Shelbourne properties are currently the process of being settled and recapped with the intention of finalizing them in” the first three months of 2026.
Shelbourne declined to elaborate.
“Settled and recapped” likely means that either Shelbourne or another purchaser could buy the debt on the buildings at a discount and invest new capital into the buildings. The strategy, if successful, could bring the towers out of foreclosure and return them to Shelbourne’s full control.
Shelbourne now considers 330 Main St. as a property that is no longer central to its strategy.
“Despite numerous attempts to sell this property, Shelbourne could not achieve a price high enough to satisfy the lender,” Shelbourne said, in its statement. “Discussions are ongoing with the lender to resolve this.”
Kenneth R. Gosselin can be reached at [email protected].