Given the current appetite - or, more accurately - the lack of appetite by developers in adding to their existing portfolio, it is not surprising that the Diocese’s properties remain on the local real estate market.
But, Joe Martone, Diocese spokesman, says there has been some legitimate interest in the properties, especially the main, five-story, 95,000-square-foot building at 795 Main Street.
The space was once home to the Buffalo Courier-Express newspaper until it closed in 1982. The Diocese acquired it and surrounding properties in 1985.
“It’s significant square footage with both the Catholic Center and the Walsh building, and then you have the warehouse building that is offered for sale as well, in addition to the three surface lots. So, you know, we feel it's a very desirable property in a great location,” Martone said.
Combined, the Diocese is trying to sell its downtown holdings for 9.8 million dollars. That includes a neighboring two-story building, a parking ramp, and several lots. But Martone says some of it can be parceled off
“The original offer was the entire property, which included both buildings, actually three buildings, and the three parking lots. But we're looking at alternate arrangements in terms of the sale as well,” Martone said.
The properties were listed against a backdrop of rising office vacancy, 16.5 percent on 33 million square feet of downtown office space, according to CBRE Upstate NY data.
Still, Martone remains optimistic
“The way commercial real estate has been with financing is challenging for a lot of commercial developers and other parties. As we've seen on the residential side, things have slowed a bit, and with also the complicating factor with the heavy instance of remote work. The commercial real estate market has changed, as we've seen, and I think that's one of the challenges that we face with this building as well,” Martone said.
Preliminary talks remain underway.
