Acres Capital, the Long Island firm that loaned $36.3 million to the developers of the Monarch 716 student-housing complex, has formally taken possession of the facility on Buffalo's West Side after the former owners defaulted.
Acres, of Westbury, N.Y., completed its $14 million "paper" purchase of the 10-building complex at 100 Forest Ave. on Tuesday, just two months shy of when it won the bidding at a foreclosure auction. The company will seek to resell the sprawling 592-bed community, or at least find a joint-venture partner, officials previously said.
Located on the site of a former pharmaceutical manufacturing plant, the complex was built by Rochester-based DHD Ventures, owned by Thomas Masaschi and Jason Teller. When it opened in August 2017, it was touted as a luxury-style complex for students, but it was quickly embroiled in controversy and liens.
Acres is an administrative agent for Reliance Standard Life Insurance Co., Philadelphia Indemnity Insurance Co. and Safety National Casualty Corp., which provided the loan that eventually ballooned to $47.7 million in debt.