Ellicott Development Co. has bought a two-story office building on Main Street near the Buffalo Niagara Medical Campus for $2.7 million, further expanding its footprint in the neighborhood.
The building at 1100 Main St., previously owned by ABC-Amega Inc., houses a pediatric dentistry on the first floor and sits across from a vacant church site that Ellicott Development plans to redevelop.
The company's latest acquisition underscores the uptick in real estate and development that continues in and around the medical corridor.
"It just gives us a nice mix of options in dealing with people that want to be in or around the Medical Campus," said Paul Gregory, Ellicott Development vice president."The ability to offer a different price point, I think, is helpful."
The building is across the street from the former Our Lady of Lourdes Church at Main and Best streets, which is also owned by Carl and William Paladino's Ellicott Development. The developers earlier this year announced plans to construct a $35 million six-story building with retail and office space on vacant land adjacent to the church.
At 38,800 square feet, the building at 1100 Main St. has a long-term tenant, University Pediatric Dentistry, on the first floor and 40 parking spaces. ABC Amega, a business collections agency, had occupied the second floor before moving to 500 Seneca St. in Larkinville. Their relocation left half the building vacant on Main.
Gregory said Ellicott plans on leasing 20,000 square feet of office space on the building's second floor.
"Buying 1100 Main really gives us another price point for people looking for office or medical space in the medical corridor that don't want to pay higher rental rates for new space," Gregory said.
The building is one block from the Anchor Bar and about a block or two north of the formal Medical Campus perimeter.
"That there's parking that goes along with this building helped this deal," said Vito Picone, senior director of business development for McGuire Development Co., who helped broker the 1100 Main St. deal, along with Chris Malachowski of Hunt Commercial Real Estate. "That's a cherished amenity in the city."
The $2.7 million purchase closed late last week.
"It's in a hot location and maybe would be used for medical use," Picone said. "This was a good acquisition for Ellicott seeing that they're controlling some parcels in close proximity."
Ellicott's purchase of 1100 Main is a natural fit with the multiphased, $35 million six-story retail and medical office building project the developer has planned near St. Paul and Main streets, and which will connect directly with the former Our Lady of Lourdes Church via a glass-enclosed atrium. The project, announced earlier this year, has been approved by the city Planning Board.
Ellicott Development officials have indicated work on the new building incorporating the church could start by early summer and finish by late 2018.
The 1100 Main building, built in 1920, was an auto dealership years ago. The building is sandwiched between Holy Trinity Lutheran Church and apartments on the other side.