Real Estate August 4, 2011 3:18 PM

Opportunity Knocks for $40,000

Opportunity Knocks for $40,000
queenseyes
queenseyes 27
Here's a neat brick building that is situated right down the street from Left Bank, Prime 490, and located directly across the street from Five Points Bakery and Urban Roots. It's also close to a new Small Built Works neighborhood park, a rebounding neighborhood, and further urban advancements in the form of a series of nearby home rehabs. For years the neighborhood has hoped that the owner would invest in the property, though that never panned out. With the right owner, and the right amount of investment, this building could be an important anchor and catalyst that would lead to further neighborhood advancements.

The building seen here once housed the infamous Club Utica - at this point there are two-three apartments on the second floor and according to real estate agent JM Reed, "The original layout is mostly intact on the second floor. The first floor has been gutted and is wide open. It was originally three storefronts (this is pretty easy to see once you are in the building). Then the whole first floor was the Club Utica. I did find plans from 1965 with the layout of the club. Following its closure (I'm not sure of the exact date) it was stripped. Everything was taken out. There are some structural issues which appear to be manageable - nothing really serious has happened yet. It is listed for $40,000 and is of course, a total rehab. Great building though, with lots of potential. I think someone could get the apartments up and running first, and then work on the first floor."

Zoned Commercial | 8863 sq.' | 527 West Utica | See listing

Listing Agent: Jean-Michel Reed
MJ Peterson Real Estate
431 Delaware Ave., Buffalo, NY 14202
email: jm@reedsalesco.com

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27 Comments Leave a comment
Itsjustjamo
August 4, 2011 2:01 PM
Itsjustjamo

I love old buildings like these. If I had the funds, I'd step in and do it right. I hope someone can step up and fix it up.

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Lego1981
August 4, 2011 2:38 PM
Lego1981

Would make for a great cafe'/art gallery. Wish I had the funds to do it myself.

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The Boss
August 4, 2011 3:12 PM
The Boss

How is the re-do down the street coming along? I recall a couple guys renovating a small brick building near Prime 490.

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J-M Reed
August 4, 2011 4:08 PM
J-M Reed

they did the major structural stabilization to keep it from falling down - there had been some major collapses on the interior. they are finalizing architectural plans, but it will be 3 great apartments and commercial on the first floor. it's a good local owner.

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Frankenberry
August 4, 2011 3:56 PM
Frankenberry

This area is really starting to turn around. Congrats JM on selling that Green house on Rhode Island. I happened to bump into the new buyer at the Central Terminal. Glad that house was rescued from neglect.

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grad94
August 4, 2011 5:24 PM
grad94

great building, fingers crossed that a good owner appears.

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ToTheTable
August 4, 2011 5:40 PM
ToTheTable

This building is a goldmine.

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bfotk
August 4, 2011 5:55 PM
bfotk

The overall goldmine is right there in what I like to call WoRich, short for "West of Richmond." It's clearly one of Buffalo's most potential-laden areas.

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Tim
August 4, 2011 6:55 PM
Tim

'WeRi' would make more sense. Jokes aside, much potential for sure.

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KangDangaLang
August 4, 2011 7:33 PM
KangDangaLang

Both are stupid, so stop trying to be the first one to come up with a trendy name for BRO.

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Tim
August 4, 2011 7:44 PM
Tim

It was a JOKE. J.O.K.E.

Have a beer this weekend, or something.

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bung
August 4, 2011 11:13 PM
bung

According to the Buffalo News the “Richmond West” neighborhood is the hottest real state area in western New York. “Richmond West” is name we give it. We live here.

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biniszkiewicz
August 5, 2011 7:38 AM
biniszkiewicz

The brick looks like it's in good shape. The dental molding is intact, the first floor is already gutted (a necessary step to a rehab anyway). Looks like a real bargain for some pioneer. Cheap asking price for what is a reasonably prominent corner. Anyone interested in opening any business at all could buy this cheaper than renting somewhere.

All you wishing you could afford it: go ask mom and dad or your retired aunt or uncle to lend you the money for five years until you can replace it with conventional financing. Offer them 10% interest (it won't cost you much on $40k), and it pays them better than the banks or stock market lately). Live in one of the rental units yourself while fixing it up. Use your rent money to pay for the mortgage instead. You'll pass this building a decade from now, when it's come cafe, thinking to yourself: I could have bought that. Damn!

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LouisTully
August 5, 2011 12:34 PM
LouisTully

Anyone know a good bank that finances projects like this?

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jim1234664
August 5, 2011 3:26 PM
jim1234664

this would be a cash only deal unfortunately

you could probably get it up and running with 100k or so (low end finishes however, also barring any unseen structural and or code issues)

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LouisTully
August 5, 2011 6:07 PM
LouisTully

Not for purchase, for financing the work. How about programs out there the city or other entities have?

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benfranklin
August 5, 2011 1:20 PM
benfranklin

Even a better bargain when it sold at the tax sale for $8000.

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ForestBird
August 5, 2011 10:03 PM
ForestBird

Ben has the right idea: The last sale price is the best indicator of current value, so the 1998 tax sale of $8000 should be your basis. A pile of bricks needing total rehab, in a crime-ridden war zone such as this, should warrant extreme caution & no more than maybe $16,000. There's also nothing but on-street parking available, which strictly limits your potential customer base.

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grad94
August 6, 2011 8:56 AM
grad94

"crime-ridden war zone?" can we please drop the outdated hysteria and melodrama? it insults everyone who has actually survived a genuine war zone, or even new orleans during katrina. they would find this neighborhood delightful by comparison.

see:

http://www.buffalonews.com/city/columns/donn-esmonde/article510480.ece

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ForestBird
August 9, 2011 4:07 AM
ForestBird

It is a crime-ridden war zone. I live there, and that's what it is. I've seen brains blown out by bullets, cars fire-bombed, people held up with guns, houses stripped to the point of needing demolition, etc etc. The West Side is going downhill so fast that it's hard to believe. 14213 has lost over 30% of its population since 1990, and another 7.4% is forecast by 2014.

Oh, sold for $9400. I waa quite optimistic with my $16,000 guess!

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biniszkiewicz
August 6, 2011 4:24 PM
biniszkiewicz

Re: most recent sale price:

It can be true that recent sales prices are good guides, BUT two points: First, 1998 is not at all recent. It's ancient. Two years is the outside window for consideration of 'recent' sales. This is thirteen years. Whoever owns it presumably invested thirteen years of carrying costs, including annual taxes and whatever he put into it.

Second, tax auction sales are not at all representative of fair market value; it's a distressed sale. For that reason, the city will not reassess a property to a tax auction price. Their assessment throws that auction sale price out the window because it's understood that a tax auction price is not any indication of actual value. Someone could have bought this for $8k last year and still be giving a great bargain at $40k or more.

Don't pay attention to what the last guy paid. Pay attention instead to what else you could buy with that money. If you couldn't get better bang for the buck elsewhere, then it's still a bargain even if the last guy got paid to take it off someone's hands (which happens,occasionally. Example: Paladino paid someone a couple hundred thou for the Greystone, from the guy who got paid $50k by the bank for taking title to it not two years earlier. That's correct: the guy who sold it to Paladino won it at auction for no money whatsoever out of his pocket and was paid the building plus $50k by the bank for his willingness to take title. Why? Because no one else was willing to pay for it or take it with less cash in hand at that auction and the bank wanted it off its books. And AM&As went to a negative auction (the winner bidder got paid $250k to take title by the bank), but that doesn't mean it has no value to someone else). It just means it didn't have more value to those who showed up at the auction that particular day.

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Good Point
August 5, 2011 10:22 PM
Good Point

Newell:

Good for for posting this type of stuff, this is what really makes a difference. I really like the movement and recruitment effort the last few months. Very positive direction and it makes a difference. Props.

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mollyd
August 6, 2011 10:50 AM
mollyd

What about those Canadian folks looking for restaurant space?

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pubmoney
August 8, 2011 4:18 PM
pubmoney

In todays paper. 527 West Utica, David Hernandez; Joseph A. Sakowski to Lamparelli Construction Co. Inc., $9,438.

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TheRealBuffaloBill
August 8, 2011 7:50 PM
TheRealBuffaloBill

That seems like the fair price on this building. I'm glad to see the guy sell it. Allot of owners just sit on stuff till it rots because they can't get that payoff they had hoped for.

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RhodeIslandBoy2
August 10, 2011 5:13 AM
RhodeIslandBoy2

Lamparelli Construction didn't buy the building. Mr Hernandez lost the building to a mechanic's lien. So the $9,438 sale price is not accurate, nor can Lamparelli be accused of flipping. They didn't want the building and Hernandez consistently refused offers to sell (some that were significantly more than the current asking price) for the past 10 years.

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cjennyjen
November 29, 2012 12:03 PM
cjennyjen

527 WEST UTICA -- BUFFALO NEIGHBORHOOD
STABILIZATION CORPORATION to convert to a
community center, 2 store fronts and 3-family multiple
dwelling. . (188045)
511-18A(1) district. Section 511-18A(1) LOT AREA &
REQUIRED FLOOR SPACE
APPROVED

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