A sprawling six-story warehouse complex at the corner of Seneca and Hamburg streets is scheduled to get a Cobblestone-like makeover as office space. A partnership headed by developer Sam Savarino purchased the vacant 328,000 sq.ft. structure at 500 Seneca Street from New Era Cap Co. The $200,000 deal closed last Friday. New Era vacated the former box factory in 2004 when it consolidated its local manufacturing facilities at a plant in Derby.
Buffalo Business First's James Fink has the details:
Tentative plans call for the building to be brought back to life as a multi-tenant commercial office building. The development plans mirror the successful template that businessman Howard Zemsky has crafted nearby on both Seneca and Exchange streets. Zemsky has created "Larkinville" -- named after the Larkin Soap Co. -- that was based along that stretch of Buffalo's eastern downtown boundary.
No tenants have been signed for the 500 Seneca Street building, although talks are underway. Preliminary talks are also underway with the Erie County Industrial Development Agency about an incentive package under its adaptive re-use program. The exact cost of the project has yet to be determined.
CityView Properties raised eyebrows in 2002 when the developer purchased the nearby Larkin Co. warehouse at the corner of Van Rensselaer and Exchange Streets after being vacated by Graphic Controls. Over the next two years, the developer spent over $12 million transforming the 10-story, 600,000 sq.ft. building into a multi-tenant office facility. It was not without risk. Though located just one half mile from Main Street, the area was not a proven office location. The investment has paid off as the building is nearly full and is anchored by Kaleida Health, Travers Collins and First Niagara Financial Group.
Savarino and Chris Jacobs teamed on a smaller, yet similar warehouse conversion project in the Cobblestone District that opened in 2008. The former Benlin Warehouse at 95 Perry Street was redeveloped as office space and five residential loft units.
Get Connected: Savarino Companies, 716.332.5959
That building got pretty beaten up in a really short span of time with no occupant. 200K for this much space is crazy.
No, the sale price makes no sense whatsoever by any even-slightly-rational standard, but these are strange times and we live in a world turned upside down. Let's hope this works out to be a big plus for Buffalo.