Jemal completes purchase of Buffalo News properties

The acquisition, which closed for $5.2 million, ends more than five decades of property ownership at One News Plaza by the region’s leading daily newspaper, which previously relocated its newsroom, advertising and other business operations to leased space in Larkinville while shifting its printing functions to Cleveland.

It means Jemal gains another piece of the puzzle in what he describes as his ongoing effort to revitalize and strengthen downtown Buffalo.

In particular, he says the purchase of the 7-acre News properties at Washington and Scott streets, coupled with his previous purchase of the adjacent former HSBC Atrium building at Washington and Perry streets, creates an opportunity “to extend the Canalside and Cobblestone districts,” link them with the nearby 38-story Seneca One tower, and tie them in to his holdings further north with the Statler at Niagara Square.

“It’s an opportunity of a lifetime to put all this real estate together and look at it at 50,000 feet, and the future long-term, rather than a spot here and a spot there, and a sporadic thing,” Jemal said. “That’s always been my vision from the day I came to Buffalo.”

He acknowledged that very little is likely to happen in the near term, because of the higher interest rates, a pull-back by banks in commercial real estate lending and general construction conditions.

“We all know what’s going on in the economy, that it’s nearly impossible to get these spec developments financed,” he said. “So we’ll wait until the market gets better and go out and get these developed.”

But he’s already thinking about a host of opportunities for his extensive new holdings, ranging from a hotel or residential space at the Atrium, to commercial, retail, residential and warehouse space at The News’ buildings, and new construction throughout the two sprawling parking lots.

Jemal cites the potential to redevelop both The News and Atrium properties, by creating a neighborhood of little alleys and “very cool little buildings” of two to three stories each, with retail or restaurant space on the first floor and apartments above.

Besides the lots, the site includes a 160,000-square-foot office building and a 170,000-square-foot warehouse, plus the parking lot. A restaurant or retail store are possibilities for the first floor, along with a museum exhibit to display such items as old newspaper front pages and archival materials. He also bought a Linotype machine and the previous press controls from the 1950s from an auction, and will keep a First Amendment display wall.

“It’s part of the history of the building,” he said. “I’m planning to do some kind of display and create a museum about the history of The Buffalo News.”

Beyond that, the four upper floors could all be converted to either residential or commercial space, depending on demand.

The press building represents a giant warehouse space “that does not exist downtown,” creating new opportunities, he said – particularly for a supermarket.