The much-anticipated conversion of the Trico complex at the edge of the Medical Campus has been put on ice. The Krog Group stopped work on the project in March when the Coronavirus hit and has not resumed construction as restrictions have been lifted. An on-site construction trailer was removed this week and The Buffalo News reports that Krog has “temporarily suspended” work on the project due to the uncertain future of the real estate market, particularly demand for hotel rooms.
Krog had completed remedial work on the former windshield wiper manufacturing plant including asbestos removal. The center of the plant, the former ice house of the Weyand Brewing Company, has been demolished opening up the complex to create more usable floor plates.
The $87 million project was expected to bring 130 loft apartments, a 105-room extended-stay hotel to be operated by Hart Hotels, 123,000 sq.ft. of office space, 12,000 sq.ft. of retail space, and indoor parking for 230 cars.
That space mix is now uncertain and work has stopped at least for the time being. From The Buffalo News:
CEO Peter Krog said the company expects to resume construction at some point, but is “assessing the impact that Covid-19 has had on the commercial real estate market and the hospitality industry due to the travel restrictions and the increase in the number of employees working remotely.”
“The hotel as a part of the project is now problematic based on unsettled demand and financing concerns,” said David Hart, CEO of the hotel operator. “The apartment count may rise as a result.”
