A seven-story apartment building on Elm Street that replaced a long-shuttered bridal and formal wear shop has leased up fast enough to land a $31.9 million bridge loan, refinancing the construction debt that built it. The 96-unit property, called Estelle New Haven, sits at 19 Elm Street in downtown New Haven, near Yale University and the city's transit network.
M&T Realty Capital Corporation closed the bridge financing, and according to Connect CRE, the loan supports Estelle's continued lease-up and stabilization while replacing its existing construction debt. The deal was originated by M&T RCC Senior Vice President Mike Casey, with support from production analyst Colin Corsini, according to the New York Real Estate Journal. At the time the loan closed in September, Estelle had already surpassed 50% residential occupancy within just two months of starting leasing in July, per the same outlet.
From Vacant Bridal Shop to Class A Tower
The half-acre site had sat empty since 2015, previously home to Harold's Formal Wear and, before that, Harold's Bridal Shop, according to Kenneth Boroson Architects, the Connecticut-based firm that designed the building. Eight West, an affiliate of the Hakimian Organization, developed the project, per Connect CRE, and broke ground on the $40 million redevelopment in October 2024 — the firm's second ground-up project after its SOLA development in Woodside, Queens, according to Off The MRKT.
Jay Hakimian, principal of Eight West, said Estelle reflects the company's long-term commitment to creating high-quality multifamily communities, according to Connect CRE. The building includes approximately 1,500 square feet of ground-floor retail space, and its amenity package runs to more than 40,000 square feet — a fitness center, co-working spaces, a rooftop terrace, a golf simulator, private dining space, and a small basketball facility, per Off The MRKT's reporting.
Pricing and a Crowded Downtown Market
Rental pricing listed for Estelle in late 2026 shows base rents of $3,180 to $5,250 per month for two- to four-bedroom units, according to a Trulia listing. That lease-up pace comes against a backdrop of rising supply: a 2026 Marcus & Millichap analysis found that elevated construction deliveries pushed downtown New Haven's Class A vacancy to nearly 7% in 2025, with another 800 residential units slated for delivery across 2026.
Census data aggregated by DataHaven in February 2026 showed New Haven added 3,535 total housing units between 2020 and 2026. Mayor Justin Elicker, in his February 2024 State of the City address, said the city had completed roughly 1,900 new housing units since 2020, with another 3,500 units planned in its development pipeline, according to the City of New Haven.
How the Bridge Loan Fits the Bigger Picture
M&T Realty Capital Corporation's proprietary bridge loan program generally targets commercial and multifamily transactions exceeding $20 million with up to 75% maximum leverage, giving owners short-term capital until a property stabilizes and can secure long-term agency or life company financing, according to M&T Realty Capital Corporation. Connect CRE's reporting frames Estelle as part of the continued revitalization of downtown New Haven, with the seven-story mixed-use building now standing where a single-story retail shop once sat vacant for nearly a decade.
