One Broker Takes It On—

Selling Fairfield Hills

In A ‘Terrible’ Market

By Kendra Bobowick

“It’s an interesting project,” said J. Michael Struna, Advantage Commercial Realty owner. “It’s a difficult project.” Recently, the Fairfield Hills Authority welcomed him as the sole broker to market the former state hospital’s vacant buildings.

Familiar with Newtown’s commercial market, he said, “Fairfield Hills is a beautiful property, but the current market is terrible.” Although “some aspects of the economy are coming to life,” a lot of people are “still hurting.” Real estate is a tough sell, he explained. From a business point of view, however, “At some point you’ve got to look to the future.”

As a review of the master plan for the Fairfield Hills reuse approaches, Mr Struna noted that a fresh look at the property is “a good idea.” He explained, “Real estate is always changing and the market place in which it lives is changing.” He is not expecting immediate responses from parties interested in leasing any of the buildings, but intends to be ready to market the property once the market changes.

One building at a time or a master developer? Considering the question, he confessed, “I am still in a learning stage.” The Fairfield Hills Master Plan review may also dictate how the town moves forward with the property. At one time the Fairfield Hills Authority had spoken with real estate consultants about the prospects of promoting the campus to a master developer.

Either one building at a time or all at once, the Fairfield Hills Authority and the town have to understand the transaction. “They have to be competitive and have got to understand the rest of the market place,” he said. Until a sense of direction comes from the master plan review, he will put together the best plan and “try to attract commerce.” The campus already possesses appeal with nearby highway access, beauty, and proximity to a nearby city. All the utilities have been upgraded — phone, gas, cable, electric, etc. “These are assets that a potential user would love to find,” he said. Conversely, he added, “It’s no secret the buildings are in tough shape.” Ideally, as a broker he will be able to find a match between a tenant or a developer and the property. Economics is the big piece he will need to fit, he said. He said again, “We have to make sure our offer is competitive.”

Economically and otherwise, anyone who approaches a property will make comparisons. “They’re comparing what they can get to other comparable sites, so there could be compromises.” Also, the town as the owner may have certain goals in mind about what may be preferable for the property. Mr Struna said, “I may bring them alternatives.”

Fairfield Hills has completed its full cycle of use, he explained, from raw land, development, maturity, decay, abandonment, and then renovation. “We’re at the renovation stage,” he said. Noting the economics again, he said, “The hard thing is doing all this on a budget. It could take creativity.”

The economy aside, the property may be a difficult sell because it is not conventional real estate, Mr Struna said. It may be hard to market, but not impossible, he said. “You will have to renovate or demolish,” in each case. Two high points are the Newtown Youth Academy and the Municipal Center both located in Fairfield Hills. “They have a good draw throughout the day,” noted Mr Struna. Food or restaurant-type places would like that traffic.

Politically, differences of opinion about the campus reuse “make the town’s work that much more difficult.” Potential tenants want to be confident “if they venture down that path” that they will not encounter obstacles or be blindsided, he said. “Discord comes into things,” he warned. “How will they be received?” Mr Struna asked. Tenants want to know that they will not see resistance from the town, the land use department, etc. If a tenant likes the location, there will be other aspects they need, and they will look to the town.

He said, “There is no real estate transaction that doesn’t have issues. There are always problems.” Referring to himself as a broker, he said, “That’s what we do — find solutions to issues.”

His first priority is to learn. He has seen some of the buildings already, but needs to take “mental inventory.”

Mr Struna worked for American Airlines and at the same time began a real estate business in 1979. While he flew for the airline, he also handled residential properties and by 1986 he was totally involved in commercial real estate.