Sinatra and Co. Real Estate has added to its local holdings, buying three properties in Buffalo worth a combined $5.76 million.
The Town of Tonawanda-based company this week acquired two apartment buildings plus a building containing both apartments and storefronts that was the former home of the Lexington Co-Op. The properties were bought from affiliates of the Barons of Buffalo LLC investment group.
The three properties are: 400 Elmwood Ave., 220-230 Lexington Ave., and 1106-1110 Main St.
The Elmwood Avenue property is a 76-unit apartment complex south of Bryant Street that sold for $2.4 million. Property records show Barons bought it for $2.5 million in 2008.
The occupancy rate at 400 Elmwood is less than 50 percent, and Sinatra plans to upgrade the units over the next year.
The Lexington Avenue property, west of Elmwood, sold for $1.71 million. Dane Chapin of Barons of Buffalo bought the property for $1.45 million in 2007, according to county records.
The property contains four storefronts, all of which leased, and 20 apartments, which are nearly fully occupied. The storefront tenants are Kuni's, Vera's Pizza, Wild Things Design jewelry store, and the Configuration Dance Theatre and School of Ballet.
Sinatra described the Lexington property as in "great shape. It's a wonderful building." The Co-Op left the property for its new home on Elmwood Avenue in 2005.
The apartment complex at Main Street sold for $1.65 million. The complex is near the Buffalo Niagara Medical Campus, south of Summer Street.
The complex's 32 units are about 80 percent occupied. Sinatra said the property will be upgraded but probably not for two to three years, given other projects his company is tackling first. The property's proximity to the growing medical campus and its ample parking were part of its appeal, he said.
Barons' Chapin did not return messages to comment on the deals.
Chapin is a partner in Zephyr Partners in San Diego. Zephyr's website says Chapin founded Barons in 2006 as a private equity investment vehicle "dedicated to acquiring undervalued multifamily and commercial real estate in New York."
Sinatra said his purchase of the Fenton Apartments from Barons last year opened the door to his subsequent deals with Barons.