TOP STORY: Developers Acquire Old Lyme Marketplace

OLD LYME, CT – The team of developers behind the Dec. 4 purchase of the Old Lyme Marketplace on Halls Road say the location is a “compelling opportunity for revitalization.”

Zelco Properties & Development, Grossman Development Group, and The McDevitt Company announced the purchase of the 102,500-square-foot shopping center at 90 Halls Road in a news release dated Sunday.

The buyers did not disclose the purchase price and no additional information was immediately available in the town clerk’s online database. First Selectwoman Martha Shoemaker on Monday said the closing took place late Thursday. 

The property was appraised last year at $13.19 million, according to the assessor’s records. 

The plaza is home to tenants including Big Y World Class Market, Walgreens, Grand Wine & Spirits, and The Bowerbird gift shop in what the developers described as “the heart of the shoreline’s primary trade corridor.”

The local Halls Road Improvements Committee for a decade has attempted to come up with ways to modernize the commercial strip that members call outdated and unfriendly to pedestrians. 

But those behind the purchase –  including Dan Zelson, principal of Zelco Properties and Charter Realty, and Jeremy Grossman, president of Grossman Development Group – describe the shopping center as attractive for its multi-building layout, pocket courtyards, pedestrian-friendly landscaping, and blend of historic and contemporary architectural elements.

They said it’s also been “under-leased” for some time despite strong anchor stores and a prominent location. 

“Old Lyme Marketplace has tremendous potential,” Zelson said. “This property has deep roots in the community, a loyal customer base, and anchors that are foundational to the region. By investing in its physical appearance and elevating the tenant mix, we aim to create a fresh, welcoming, and high-performing center that better serves Old Lyme and the entire shoreline.”

The new owners cited plans for strategic capital improvements, aesthetic enhancements, and targeted leasing initiatives “aimed at restoring the center’s role as a vibrant daily-needs destination for residents and visitors.”

They said they look forward to working closely with tenants, local officials, and community members as improvements begin and leasing efforts accelerate.

An effort by the Halls Road Improvements Committee to update zoning regulations to allow apartments in the commercial district was rejected earlier this year amid vocal public opposition. The proposal was the foundation for a controversial plan to encourage a livable, walkable, and shoppable town center blending first-floor retail options with residential space above and behind.

A plan to install sidewalks – which was bolstered last month through the announcement of an $800,000 grant from the state Department of Transportation – has emerged as the only viable public improvement to date. The grant is intended to cover sidewalks on the north side of the road where the Old Lyme Marketplace is located.

During Monday’s special meeting of the Board of Selectmen, Shoemaker said the buyers have done their due diligence.

“They have been here at Town Hall for the past, I would say, five to six months: going in, getting information, talking to people,” she said. “And I just really appreciate the way they went about it. They spent a great amount of time talking to the tenants there and learning more about our community, and so I think they’re going to be a great addition for Old Lyme.”

Charter Realty, the leasing arm of Zelco, will lead leasing efforts at Old Lyme Marketplace, while Grossman Development Group will oversee property management.