Eye-Opening Sale on Delaware
A Delaware Avenue apartment building has just sold for an astronomical price. 905 Delaware Avenue, located at the southeast corner of Delaware and Bryant Street, sold yesterday for a whopping $5.215 million. The three-story building was built in 1958 and contains just twelve apartments. That is $435,000 per unit. A detached parking garage is also located on the lot.
The building was sold by Daniel Schwartz to a newly-formed LLC, Proteus Development, with a Brisbane Building mailing address, most likely a law firm.
905 Delaware is across the street from the Campanile residential building. The Campanile is one of the largest and most prestigious residential properties of the pre-Depression era in Buffalo. It was designed by architect B. Frank Kelly in 1929.
The property is zoned R4- Apartment District, the same zoning as the Gates Condo tower site. Schwartz purchased the property in 2000 for $385,000 and it is assessed at $350.000. Evans National Bank provided Proteus with a $3,546,851 mortgage according to public records.
Let the speculating begin....
UPDATE: Biniszkiewicz has apparently solved the mystery. The purchase by Proteus included a 68-unit, apartment building on the northwest corner of Delaware/Bryant, 916 Delaware Avenue. The five-story, circa-1926, 'U'-shaped building has an assessed value of $1.5 million.
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simcoe
Which business bought it? Suckers Inc.
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Littleflick
Theory One: somebody struck oil underneath Theory Two: MS-13 bought the building for their Initiation Headquarters Theory Three: the story's bulls@$t Theory Four: somebody's an idiot
I hope it's none of those.
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Sal
The trick in Florida is to set up a dummy corporation to flip the building to. The seller is only looking to cash out with about 60% of the appraisal. The bank gives out 80% in the form of a mortgage. The seller holds a 20% second mortgage which is never paid and eventually written off in the seller's income tax.
I'm not saying that is what is transpiring here, just trying to stimulate conversation here.
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Hoss
Hardy har har. 04/01/08
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RisingDamp666
Sal just might be on to something here. It's just too freaky to comprehend as a straight transaction. Whatever the angle, look for more listings up and down the block.
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BuffedOut
Whatever happened to that mansion on Delaware that was for sale for 3 million?
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Biniszkiewicz
The deal is for two buildings kitty-corner from one another. If a person buys several properties simultaneously from a single seller for a lump sum, then for some reason the sale price recorded for each property is the total sum price of all the properties. I don't know why the City records things this way, but I do know one reason buyers like to purchase this way: the city then doesn't know exactly how much went for each building and therefore the assessment isn't updated according to purchase price (taxes are roughly $40/$1000 of value on commercial property in the city; seeing taxes escalate to purchase prices makes many deals untenable).
This price was for a total of 80 units on the northwest and southeast corners as well as the first home on Bryant abutting the larger building. Still, $65k is a strong price/unit for these (many were efficiencies and single bedrooms units).
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tudorguy
Seriously, is this an April Fool's joke?
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SignWizard
Could this have anything to do with Children's plans?
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flyguy
Must be April Fools. A newly formed law firm in the Brisbane Building already shifting focus to expensive real estate acquisitions? Why?
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flyguy
I wish there was some way of going back in an editing or deleting your own comments similar to how you might on flickr or myspace or facebook. This might avoid these double post scenarios like I just did above by accident. Sorry all.
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Sal
Biniszkiewicz - I believe you're correct. There's a $1.275 million mortgage from 2002 that was modified along with this transaction from what I found.
The assessed valuation on 916 Delaware is $1.5 million and 139 Byrant is at $198,000.
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NBJOHN
Issa involvment?
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tonyarmani
the company does have a legit site: http://www.proteusdevelopmentgroup.com, albeit a really crappy one..i dont know if a company that can't put together a website could really have an undertaking of this size. Unless the remains of Jimmy Hoffa are underneath, I think this is an april fool's joke.
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zen
i would expect BRO to come up with something more witty, therefore it's probably legit.
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sbrof
I do love that building just north of it though... how cool must the interiors of the upper floors be.
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BuffaloRitz
is the building to the south of it for sale too? The doctor's office? And the 3.3 million mansion to the south of it too? Someone going to knock it down and build something new?
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SLEEPL8
I just sold a bologna sandwhich in the cafeteria for 5 million $$$!
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Ike
Doesn't make a lot of sense...if they wanted to build a new building, they'd likely be buying lots next to each other, not across two streets. Maybe they think that the building are ripe for some renovations that can turn them into big money makers, but it still seems like you wouldn't want to overpay by multiple millions.
Guess we'll wait and see
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sally
As usual BRO is clueless as to what they are talking about. It was 72 units purchased not 12. That's a whopping $72,361 per unit hardly excessive. For real news read the real media not this amateur site. BRO should stick to it's forte' ...restaurant openings.
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BROKEEPSBLOCKINGME
what about bird migration? IM suing
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zen
Sally, do you mean Artvoice, because you can't possibly think the News represents the "real" media.
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bizcomplete
article in business first indicates another 60 unit building next door is included in the sale bringing total # of units changing hands to 72 - makes the sale price seem more rational.
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doc
Looks like an investment strategy with potential for mid-rise or high-rise development. That would be my guess. Speaking of which, anybody know the status of Gates Circle condo project?
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gaustad
Am I missing something here - if the two building are wortH 1.5 mill + 382k then WHERE IS THE OTHER 3 MILLION PLUS COMING FROM?!
There is nothing rational about 5 mill for 78 units
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bufflow
To Tony Armani.....that's a different Proteus group. You might have just started a name copyright battle!
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Mariner
I hear Bass Pro is Moving in there.
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urbansoul
I love reading this site..........but as of late it appears to lack information. For instance, there was the story the other day about the Statler. Basically, it was a re-wording of the information provided by other news sources. What I'd like to see is BRO going for the interview, in that case Issa, dig in deep and get some information otherwise not there. It was later reported by other sources that Issa is close to landing Wyndham. That would obviously change the whole scenario over there on Delaware.
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Mrrealestate
The avg. basic Bflo.suburban apt. complex ( plain jane) sells for anywhere b/w 35-45k per unit. How much more would you pay for Delaware ave. if you had the money? I think people in this city have a hard time comming to terms, that people from all over the World have been buying up Bflo. and have amounts of money that is hard to comprehend. LLCs may be formed localy, but are backed by investment groups from wherever?. There is some mad serious bucks comming in, and have been for the last 4 years, call them nuts, but they are buying up the city. Pretty soon yo landlord be named Mohommad Husain Baslin
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joey
"Correction to story., the real seller of the property was Matt Q, wonder if he is going to report the sale?" DOES A LEOPARD CHANGE HIS SPOTS?
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Sal
Mrrealestate - I'm not aware of any property Matt Quagliano owns, except for a vacant lot on the east side. You presented a rhetorical question, right?
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doc
Mr. Realestate your narrow, seemingly culturalist/ racist view about property ownership in metro Buffalo is appalling. I think it is you, sir, who cannot accept this phenomenon of long-distance ownership and infusion of capitol (you call it mad serious bucks) into our region. If you were as savvy in the market as you purport to be you would realize the benefits of this arrangement far outweigh the negatives and it happens to be a very good indicator for the area which is enjoying unprecedented appreciation in real estate values and is currently bucking the foreclosure trend nationwide. I find your post to be isolationist, reactionary and typical "old" Buffalo mentality.
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hashma
Well, this cannot be a flip, thats for sure. According to Biz first, the buildings are full, or nearly so, in good shape so even if they don't add to them or plan to and fail, its not like the Statler since they're in fine condition right now. Would be nice to see something new, just down the street from the Gates Circle project. When does that start, by the way? I know they have to get the Attorney General's approval, but I know ABSOLUTELY NOTHING when it comes to real estate development....I'm Pre-Med!!!
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pgf1948
How extraordinarily beautiful (what's left of) Buffalo is.
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RebuildBflo
There are two companies regestered with the state of NY for Proteus Development:
1) Selected Entity Name: PROTEUS DEVELOPMENT GROUP LTD.
Selected Entity Status Information Current Entity Name: PROTEUS DEVELOPMENT GROUP LTD. Initial DOS Filing Date: JUNE 08, 2000 County: SUFFOLK Jurisdiction: NEW YORK Entity Type: DOMESTIC BUSINESS CORPORATION Current Entity Status: ACTIVE
Selected Entity Address Information DOS Process (Address to which DOS will mail process if accepted on behalf of the entity) PROTEUS DEVELOPMENT GROUP LTD. 76 BAYARD STREET LAKE GROVE, NEW YORK, 11755 Chairman or Chief Executive Officer ANTHONY PALMIERI 76 BAYARD ST LAKE GROVE, NEW YORK, 11755 Principal Executive Office PROTEUS DEVELOPMENT GROUP LTD. 76 BAYARD ST LAKE GROVE, NEW YORK, 11755 Registered Agent NONE
2) Selected Entity Status Information Current Entity Name: PROTEUS DEVELOPMENT, LLC Initial DOS Filing Date: MARCH 04, 2008 County: ERIE Jurisdiction: NEW YORK Entity Type: DOMESTIC LIMITED LIABILITY COMPANY Current Entity Status: ACTIVE
Selected Entity Address Information DOS Process (Address to which DOS will mail process if accepted on behalf of the entity) PROTEUS DEVELOPMENT, LLC 403 MAIN STREET SUITE 605 BUFFALO, NEW YORK, 14203 Registered Agent NONE
My original thought when I saw this in Business First was exactly what a number of you have already stated, that an LLC was formed to sell these buildings to at an inflated price, most likely to pull some money out of them for other investment, or any other purpose, it happens all the time in real estate. Another method for doing this would be to have the two buildings appraised and process a cash out refinance on the buildings.
However, I would not be surprised if another investor group purchased the building. There is alot going on in Buffalo, especially in this area, the medical campus, downtown, and the westside. Our region has been cited many times in the national media recently as an area that has not been greatly impacted by the credit/foreclosure crisis, investors are seeing the benefits of moving money into this region.
Now lets just get the Statler back on track! :)
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Mrrealestate
Relax Doc, I don’t have any real problem with out of town money coming into our City, but FYI its not why the Elmwood Village, Delaware area ( Which is the only real place that’s seeing any real appreciation ) is not because of the out of Towner’s. Nor is it why we are ( bucking the foreclosures problem ) 75% or better, of the out of town money is buying junk and letting it go after they realize it doesn’t make the money they learned form all the (get rich quick shows) they watched, which sounds like you watched them too. The foreclosures…, nothing to do with it. You just showed your ignorance. Take a chill pill dude.
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Mrrealestate
SAl, it was just a joke....
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Sal
Mrrealestate - thanks for the clarification. Sometimes it's hard to tell what comments are serious here, especially on an article written April Fool's Day!
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RobH
Watch for these apartments to go condo.
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