Sun Homes JV Secures $75M for Connecticut Office-to-Condo Conversion
The project has been significantly revised in order to comply with flood control requirements.
A joint venture between Sun Homes and Hudson Bay Capital have secured a $74.5 million loan for the acquisition and redevelopment of a former Stamford, Conn. office building into a 63-unit luxury condominium property. An affiliate of Apollo Global Management provided the funds.
Walker & Dunlop arranged the loan for the office-to-residential conversion of the existing seven-story, 241,000-square-foot waterfront office building at 68-70 Seaview Ave., located in the city’s Shippan Point neighborhood.
The office building, completed in 1986, was home to tenants including XL America, Fraser Papers and Cox Target Media. The building has been vacant for several years.
The Caspian will start construction in the fall. The community will have a mix of one-, two- and three-bedroom homes and townhouse residences. Features will include indoor and outdoor amenity spaces, private rooftop terraces, structured parking and a 57-slip marina.
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Situated on 1.38 acres along the Long Island Sound in Stamford, the property offers access to nearby dining, retail, transportation and Metro-North Railroad commuter train service on the New Haven line to Manhattan. Amtrak service is also available via the Stamford Transportation Center at Washington Boulevard and South State Street.
The Walker & Dunlop Capital Markets Institutional Advisory team was led by Senior Managing Directors Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer and Dustin Stolly, along with Managing Director Jordan Casella and Associate Stanley Cayre.
Flood control concerns lead to delays
The development has been in the planning stages since 2023, when it was initially approved for 52 condo units. Construction stalled for various reasons, including concerns by the Federal Emergency Management Agency over flood-control requirements. The plan previously approved by the Stamford Zoning Board did not meet FEMA’s stringent rules for coastal development and could not move forward.
In May, the parties reached an agreement after the developers announced plans to cut off the part of the building that did not meet the FEMA requirements, according to reporting by the Stamford Advocate. Because the modifications will cost an additional $3 to $4 million, Sun Homes sought and received approval to increase the unit total to 63.
The developer is not offering affordable units at The Caspian but will contribute approximately $1.8 million to the city’s Affordable Housing Trust Fund, the Stamford Advocate reported.
A look at Stamford’s supply-constrained market
Schwartz noted in prepared remarks that Fairfield and nearby Westchester counties remain highly supply-constrained markets, particularly for new waterfront housing because of the limited developable shoreline and complex entitlement processes.
Marcus & Millichap reports demand outpaced new supply in Fairfield County during the first quarter of 2026, following negative net absorption in the second half of 2025. In the Stamford and Norwalk submarkets, Class A and B vacancy fell below 5 percent in the first quarter, with higher-income renters supporting lease-ups.
Marcus & Millichap’s multifamily market report 2Q/26 for Fairfield County noted that about 2,500 residential units were under construction as of May, keeping completions elevated into 2027. Much of the supply will be opening in Stamford and Norwalk, which should be able to absorb the next delivery wave because of tightening fundamentals.
