A Main Street office building and a prominent corner are getting Buffalo Urban Development Corporation (BUDC) financial help to assist with conversion projects. The Kissling Interests is receiving money to convert the upper floors of the White Building at 298 Main Street to upscale apartments. At Oak and Genesee Streets, Sienna Realty is receiving funding to help convert seven underutilized properties to residential space. Both projects are being assisted under the Buffalo Building Reuse Project (BBRP).
Mayor Byron W. Brown in January 2012 allocated $11.25 million to the BBRP by and later partially matched by National Grid. The financial commitment is being used primarily for infrastructure improvements, with $3 million of the funds awarded through an open RFP process to support downtown redevelopment projects such as the two selected for funding.
One of the key goals of the program is to reduce the amount of class B and C office space that comprises more than half of the downtown office market and has a high vacancy rate. Conversion of these buildings is seen as enhancing downtown and help spur demand for retail.
From the Buffalo Building Reuse Project report:
Downtown Buffalo has an oversupply of office space, and the majority of it is from a stock of class B and C buildings encumbered with a number of factors limiting their potential for redevelopment: Small floor plates, outdated building systems, environmental problems, and lack of parking.
Over time, additional downtown residents will increase the demand for retail services which in turn fills storefronts removing still more vacant space from the market while increasing vibrancy. This added vibrancy also will assist in improving the perception of downtown as a safe, secure place to live, work and visit.
The Kissling and Sienna projects were selected from six applications under the BBRP application process:
- 298 Main Street – The Kissling Interests
- 1106-1110 Main Street (Wayne & Waldorf Apartments) – Sinatra & Co.
- 505 Pearl Street – Mark Croce
- Ellicott/Oak/Genesee Gateway – Sienna Realty
- Genesee/Michigan Avenue Project – Madison Construction
- 835 Washington Street (Phoenix Brewery Apartments) – Sinatra & Co.
Proposals were evaluated based on financial information, developer expertise, and the alignment with the criteria established by the BBRP and the Queen City Hub Plan:
- Project readiness
- Reduction of existing office vacancies
- Addition of new residential units
- Proximity to existing residential clusters
- Adaptive and historic reuse
- First floor retail
- Builds upon recent public and private investments
- Net new downtown growth
BUDC’s selection committee recommended the following two projects move forward to the loan application and underwriting process:
298 Main Street (entry image and above); Main & Cathedral Development LLC (The Kissling Interests) for a loan in the amount of $750,000
- Reduces vacant/underutilized office space
- Located on Main Street
- Close proximity to public transit
- Highly visible area
- Adds 26 residential units
- Potential of additional residential development nearby
- “Ready to Go”
Ellicott/Oak/Genesee Gateway Project (photos above and below); Sienna Realty (Fred LoFaso) for a loan in the amount of $600,000:
- Transformational project located in a priority node
- Redevelops seven vacant properties
- Adds 21 residential units
- Close proximity to other private investment (Catholic Health, new restaurants)
- Activates first floor space
- Close proximity to planned infrastructure projects (Genesee Gateway, Chippewa Street, Elm-Oak Corridor)
- Includes retail, commercial and residential components
- Transfers title away from current absentee property owner
Funding for the other four projects is still possible. The BUDC Selection Committee is considering possible funding for some of the other projects.