Commercial real estate investors Nicholas and Dimitri Tzetzo have acquired a Tudor-style commercial mixed-use building in Lancaster from veteran bankruptcy attorney Peter Grubea, who will remain a tenant.
Tzetzo Companies LLC, through Oakridge MFR Holdings LLC and RDNW LLC, partnered with Wayne Keller's WKP2 LLC to purchase the English Park Village property at 338 Harris Hill Road and 8499 Wehrle Drive from Jig Jag Development Corp., owned by Grubea.
The purchase price was $5.838 million, according to Erie County Clerk records — significantly more than the $3.9 million that Grubea paid when he bought the two-story building from Michael Lorigo of Pillar Real Estate Advisors in November 2014.
"Peter has done a nice job of taking a distressed property and stabilizing it nicely," Nicholas Tzetzo said. "He upgraded it substantially. We want to continue to upgrade it, but keep it in that same 'B' office segment."
Located on the southeast corner at Harris Hill and Wehrle Drive, the 82,000-square-foot office building sits on 4.8 acres on the Clarence-Lancaster border, and was built in 1980.
The property is more than 90 percent occupied, with more than 50 tenants in a host of small office suites, Tzetzo said. Each office has its own heating, air conditioning and electric, with forced-air furnaces, and the complex has over 100 parking spaces.
Tzetzo said his firm bought the complex "primarily as an investment property." He said they do plan to invest some capital into certain areas of the facility, possibly for repurposing some space, but "by and large, the property is going to remain in its current use and current footprint."
"We were very attracted by the location and the fact that it's an opportunity at far less than building new," Tzetzo said. "We plan to portfolio it and work diligently to keep it full."
Grubea moved his offices to the Lancaster building from his longtime home at 482 Delaware Ave. in downtown Buffalo, and will be staying in the building under the new ownership.
"He wanted to focus his efforts on his law practice and step away from the real estate business," Tzetzo said. "We're happy to have him."
This is the latest purchase for the Tzetzos, former attorneys who have largely shifted their focus to real estate and business investments, although they both maintain active law licenses.
The family business owns multifamily and mixed-use properties in Derby, East Aurora, Fredonia, Hamburg and Lackawanna, and just bought two buildings in Buffalo. It also owns and operates the Fredonia Place assisted-living facility in Fredonia, and owns but doesn't operate nursing homes in Westfield and Liverpool, N.Y.
Tzetzo said he's looking to grow, particularly with apartment buildings and assisted-living.
"We're a little bit across the board and trying to stay diversified, based on whatever is opportunistic at the time," he said. "We're actively looking for opportunities."