$34M loan to jumpstart Shelton’s Fountain Square retail development

GreenLake Asset Management LLC, a Los Angeles originator of commercial bridge loans, has funded a $34 million refinance and construction loan for Fountain Square, the Shelton retail center whose progress has been delayed due to financial difficulties.

Fountain Square shelton — A rendering of the development.

Located at 801 Bridgeport Ave., the 85,000-square-foot Fountain Square was the first retail development in the Shelton market since 2021 and its tenants include Chick-fil-A, Panera Bread and Taco Bell. But development at the property stopped due to various construction liens and complications within the partnership that owned the venue.

According to GreenLake, the new loan will help to settle outstanding financing and more than 60 vendor liens, as well as carry out a successful partnership buyout. Moreover, the loan provides the necessary funding to bring the project to completion and stabilization.

“The completion of this project involved navigating an intricate transaction with a significant number of liens and distressed mortgages,” said Peter Chang, managing principal at GreenLake. “The sponsor has an impressive track record spanning more than three decades in commercial construction and development in the Northeast. We are confident that Fountain Square will thrive with its irreplaceable location, strong market and quality tenants.”