Developer Nick Sinatra has struck again in his quest to assemble a residential empire in Buffalo, snapping up a downtown apartment complex located three blocks from the Buffalo Niagara Medical Campus for nearly $1 million.
Sinatra, through his BN Medical Campus Rental Group LLC, on Thursday put down $945,000 to buy the Franklin Tupper Apartments at 329-331 Franklin St. The seller was Paul Fineberg of Buffalo, acting through Franklin Associates Management Co. Inc.
The historic four-story, brick-and-stone corner building includes 12 fully occupied apartments – nine one-bedroom units and three with two bedrooms – and a 2,600-square-foot basement, with on-site parking.
Located on the southeast corner of Franklin and Tupper streets, the 10,400-square-foot tan-and-brown structure was built in 1892 but completely renovated on the first two floors in 1998, with continuing infrastructure work since then.
Rents range from $700 to $870 a month, and the building generates $78,831 in annual net operating income. It’s assessed at $222,222.
Paula Blanchard of RealtyUSA Commercial, who represented the seller, said Fineberg had owned the building for over 30 years. “During that time, he really did a good job of increasing the value,” she said. “He kept it well-maintained, made a number of improvements to the units and was very good about securing good tenants.”
But after three decades, she said, he decided to “turn it over to new owners to take it to the next level,” citing the proximity to the Medical Campus and the rapid pace of real estate development on and around it.
The property elicited multiple offers, Blanchard said, but Fineberg opted to take Sinatra’s “because of the strength of the buyer.”
Sinatra, a Buffalo native who burst onto the real estate scene five years ago with heavy financial backing from the Pritzker family of the Hyatt hotel chain, has been gobbling up mostly apartment buildings in Kenmore, Tonawanda, North Buffalo, the Elmwood Village and now downtown.
He is redeveloping the Fenton Village apartments at Main and West Ferry streets and the Wayne and Waldorf Apartments at 1106-1110 Main St. And he bought the Market Arcade Building in downtown Buffalo from the city, which will now be his firm’s new corporate headquarters.
More recently, he’s been active around the Medical Campus, where hundreds of millions of dollars of public-sector investment in new facilities is driving demand for more housing and retail space, and spurring significant spending by developers and longtime landlords.
In June, he bought 17 North Pearl St. for $400,000 from Lawrence Costa. And he is teaming up with Buffalo native and New York City hedge fund manager Daniel Lewis to redevelop the former Phoenix Brewing Co. building into market-rate apartments that would also spin off a portion of the profits to benefit Say Yes Buffalo.