Could the $30 million transformational plans for Hamburg’s Gateway Building campus could very well be that spark that spurs other developments from non-local investors?
The short and albeit a tad optimistic answer is yes…but yes with an asterisk.
Interest rates and concerns about the economy still hover over most development projects.
Local commercial real estate insiders all say they are busy, especially with Canadian-based firms looking at the Buffalo Niagara region as a likely development destination.
And, the plans by New Jersey-based 3556 Lakeshore Boulevard Development LLC that will turn the Gateway complex - just off of Route 5 and near the Ford plant - into a live-work=play campus with office space, townhomes, a sports bar, and an event center serve as another key upbeat example.
The developer’s attorney Marc Romanowski explains.
“I think Buffalo has been underrated for outside investment. I find that I typically have one to two major developers from out of the area that come to me to assist them with these projects, and they see the lower barrier to entry and as compared to typical East Coast development processes, even though we can be sometimes challenging, it's simpler and more straightforward than maybe what they're used to,” Romanowski said.
Romanowski said his client remains bullish on the Buffalo Niagara region, as evidenced by the $4 million that was paid for the Gateway complex.
And, the more than $25 million pledged to renovate the seven-story Gateway tower and build the townhouses is another sign that developers are not shying away from investing in the region.
“I think developers as a whole are looking for the right opportunities. I think they still are very challenged by the existing interest rates and some of the apprehension of lenders to lend on different types of commercial projects. But we're seeing, I think, maybe some sign of optimism that things will get a little bit easier and make it more palatable,” Romanowski said.
Development plans for the Gateway campus will be filed with Hamburg officials this spring. Pending various approvals, construction could start later this year or by early 2026.
