New York City real estate investor Anthony Kissling has completed the sale of another piece of his empire to the Wynn brothers of Toronto.
Gold Wynn Residential USA, through Gold Wynn Delsan Court LLC, paid $8.74 million on Tuesday to acquire the Hertel Homes apartment complex from Kissling.
The deal was actually part of the Wynns' original purchase in January 2019 of Kissling's entire regional portfolio of 18 properties, including Cathedral Place in downtown Buffalo and the Remington Lofts in North Tonawanda.
But the closing on this one was delayed until now for tax and other reasons, although the Wynns have been running it, said Ben Friedland, vice president of finance for Gold Wynn. Wynn completed its purchase of the related Delsan Court apartments last January.
The complex at 527 Hertel Ave., just east of Military Road, features 158 units in multiple two-story buildings, with a mixture of one-, two-, and three-bedroom apartments renting for $800 to $1,100 per month.
The units have been renovated and updated. The complex includes a courtyard and laundry facilities.
"We've been renovating it pretty heavily for the past 12 months, and will continue to do so," Friedland said, citing new lighting, electrical work, paving and landscaping. So far, he said, about 40% of the units have been upgraded as tenants have moved out, but "we'll need another 12 to 18 months to turn all of them."
Friedland said closings are still pending on a few of the other Kissling properties as well, but all are being managed by Gold Wynn.
Gold Wynn, part of the Wynn Group of Companies, has been increasing its presence in Buffalo's commercial real estate market since entering the scene a few years ago. The company already owned and managed seven properties in Buffalo, including the former Buffalo Athletic Club building at 69 Delaware Ave. and a residential building at 1165 Delaware Ave., before it unveiled the Kissling purchase last year.
All told, the purchase encompasses 841 apartments and 85,000 square feet of commercial space, and includes all of Kissling's higher-end apartments. And Gold Wynn said at the time that it would invest more than $5 million to upgrade some of the buildings, although that was only an initial spending goal for basic improvements.
Gold Wynn also owns multifamily properties in Tulsa, Okla., that state's second-largest city, where it has 15,000 apartments in seven buildings.
The Wynn Group was formed more than 40 years ago, and has investments in fitness clubs, renewable energy, storage, plastic injection molding and assembly, furniture and appliances, in addition to its real estate business. Besides Toronto, Buffalo and Tulsa, the company has holdings in Los Angeles, the Bahamas, the Dominican Republic and Israel, through its Wynn Group International division.