Multi-phase initiative will transform underutilized lot into vibrant mixed-income, mixed-use community

Pennrose, The Cloud Company, and the Borough of Naugatuck celebrated the groundbreaking of the Parcel B redevelopment, which will transform a vacant, 7-acre lot on Old Firehouse Road into a mixed-income, mixed-use, and transit-oriented community. The first phase, expected to be completed in Fall 2026, will include 60 mixed-income apartments with robust on-site amenities and ground-floor retail.

Speakers at the groundbreaking included, Susan Bysiewicz, Lt. Governor, State of Connecticut; Warren “Pete” Hess, III, Mayor, Borough of Naugatuck; Joan V. Hartley, State Senator; Jorge Cabrera, State Senator; Seth Bronko, State Representative; Rob Michalik, Director of Government Relations, Connecticut Housing Finance Authority; Seila Mosquera-Bruno, Commissioner, Connecticut Department of Housing; Elisa Velardo, Deputy Commissioner, Connecticut Department of Developmental Services; Sanford Cloud Jr., Chairman & CEO, The Cloud Company, LLC; Karmen Cheung, Regional Vice President, Pennrose, LLC; and Charlie Adams, President, Pennrose, LLC.

Phase I is designed to serve a broad range of households, with one- and two-bedroom apartments available at 30%, 50%, and 80% of the Area Median Income (AMI), along with market-rate rents. In addition to the high-quality apartments, Phase I will deliver approximately 3,000 square feet of ground floor commercial space, envisioned to support local businesses that will enhance foot traffic and neighborhood vitality.

The brand-new apartments will feature spacious floor plans; modern, fully equipped kitchens; large closets; ceramic-tiled baths; and individually controlled heating and cooling. Residents will also have access to indoor amenity space featuring a community room and fitness center.

“We’re proud to support the Borough’s vision for a vibrant, transit-oriented downtown,” said Karmen Cheung, regional vice president at Pennrose. “This project thoughtfully combines quality housing, green space, commercial elements, and mass transit to create a more connected and inclusive Naugatuck."

"Naugatuck has made significant efforts in recent years to preserve its historical industrial roots while embracing modern development,” said Lt. Governor Susan Bysiewicz. “This Parcel B project exemplifies such commitment, transforming a vacant lot along the Naugatuck River into a much needed mixed-income, transit-oriented neighborhood. Along with plans to build a new train station on Parcel B, Naugatuck once again demonstrates its dedication to revitalizing the downtown area and creating a more inclusive, connected community."

“The Pennrose mixed-use project marks a turning point for our downtown – where new housing units, restaurants, and walkable streets come together to create a vibrant destination. We’re not just building housing; we’re building opportunity, energy, and long-term value for our entire Town,” said Mayor Pete Hess.

“The Cloud Company is delighted to be the co-developer for this transformational housing development with a retail component in downtown Naugatuck,” said Sanford Cloud, Jr., chairman & CEO of The Cloud Company. “It has been a pleasure to work with Mayor Hess and his team in getting us to this point. We are excited to be a part of this three-phase affordable housing project." 

Once complete, the three-phase Parcel B redevelopment will create 180 new mixed-income apartments across three, 60-unit buildings and more than 7,000 square feet of commercial space. A key component of the project is the planned public green space, including a market plaza, central lawn, and gardens to foster community gathering and shared local experiences.

The Parcel B redevelopment is one of several Borough initiatives to revitalize downtown Naugatuck. The Connecticut Department of Transportation is simultaneously constructing a new state-of-the-art train station at the heart of the Parcel B site to replace the Water Street station. The relocated transit hub, expected to be completed in the summer of 2027, will provide local residents with easy access to the expanded Metro-North line and serve as a connector between downtown Naugatuck and the east side of the Naugatuck River Greenway.

“With open community space, amenities, and access to the new train station, Parcel B will be an excellent housing opportunity for everyone from recent graduates to young families and older adults,” added Marsha Blunt, president of Pennrose Management Company.

Financing for the project includes Federal Low-Income Housing Tax Credits (LIHTC) purchased by TD Bank and syndicated by Red Stone Equity Partners. Construction loans are provided by M&T Bank and Ion Bank, and a Permanent Loan is provided by Connecticut Housing Finance Agency. Additional state funding sources include Connecticut Housing Finance Agency Opportunity Funds, Department of Housing FLEX Funds, and Department of Developmental Services Funds. Other funding sources include Affordable Housing Program funds from the Federal Home Loan Bank of Boston and the Federal Home Loan Bank of New York.

With a regional headquarters in Boston, Pennrose is active throughout the New England region and across the country. Pennrose also recently celebrated the groundbreaking of Trinity Street Apartments, the redevelopment of two 1920s-era state office buildings into 104 mixed-income rental homes in Hartford.