Pegula Sports & Entertainment is buying a rough-looking five-story brick industrial building across the street from the First Niagara Center where the Buffalo Sabres play, expanding its real estate presence in the Cobblestone District.
The business empire of Sabres and Bills owners Terry and Kim Pegula put the Hi-Temp Fabrication building at 79 Perry St., at the corner of Illinois Street, under contract to be acquired from Shelley and John McKendry. The purchase price has not been disclosed, but sources told Buffalo Rising that it will be “north of $4 million” and was prompted by an offer from other developers. The building is assessed at just $255,200, according to city records.
The century-old building was constructed in 1914 for Peerless Mill Supply Co., which still operates there as Peerless Inc. It shares the building with Hi-Temp. Both are expected to move following the building sale.
Pegula Sports and Sabres spokesman Michael M. Gilbert declined to comment, and Hi-Temp owner John McKendry could not be reached to comment late Wednesday.
The 79,030-square-foot building is located next to Samuel J. Savarino’s converted IronWorks and 95 Perry buildings, and across Perry from the HSBC Atrium and its fenced-in parking lot. With the fading white paint on its unimproved facade, it’s one of the few buildings in that area that hasn’t gone through renovations or been redeveloped.
It’s not clear what plans the Pegulas may have for the facility. The offices of Pegula Sports & Entertainment, which oversees the family’s sports, music and entertainment holdings, are at Ellicott Development’s nearby Creamery Building at 199 Scott St., after moving from One Seneca Tower. There is speculation about moving the Sabres’ offices out of the arena building.