By Mark Scott
Buffalo, NY – Two New York City real estate investors have agreed to buy the vacant K-Mart building at 998 Broadway in Buffalo.
The deal was completed just prior to an auction that was scheduled for Thursday. Terms were not disclosed. Neither were the identities of the two buyers. David Fiegel represents Michael Fox International, the firm that was coordinating the auction. He says, for now, they wish to remain anonymous.
"I know who they are. I've met with them and showed them the building," Fiegel said. "I've spent quite a bit of time negotiating the formalities of the transaction.
"They just asked to remain transparent until such time as the transaction closes."
And that's expected within the next 30 days. Fillmore District Common Council Member David Franczyk said that he's been told the buyers have inquired about tax incentives offered under the state's Empire Zone program. But Franczyk said it's still not known what they're planning.
"It looks like they're examining a full range of possibilities, from retail to office and perhaps even light industrial" Franczyk said. "Of course, retail would be my preference because 998 Broadway is the most famous retailing address in Western New York."
Indeed, 998 Broadway was once the flagship of the long-gone Sattler's Department Store. In 1990, K-Mart built a 90-thousand square foot store at that site. But the bankrupt discount chain closed it earlier this year.
So, for now, the auction is canceled. Fiegel said that's not an uncommon occurance.
"Typically, in these situations, the prospective purchaser gets nervous about having to compete against other people, in the public eye," Fiegel said. "What they'll do is up their ante and and ask to cancel the auction."
He said there was significant interest in the K-Mart site.