Second Group Steps Up to Buy Elm Street Site

September 27, 2012 Updated Sep 27, 2012 at 8:20 PM EDT

By James Fink; Business First

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Second Group Steps Up to Buy Elm Street Site

September 27, 2012 Updated Sep 27, 2012 at 8:20 PM EDT

BUFFALO, NY (WKBW) - The former Spaghetti Warehouse, an Elm Street building whose roots date back to the 1880s, has been acquired by a local investment group that wants to renovate the three-story structure into apartments.

The buyer, Elm/Michigan Holdings LLC, paid $706,522 for the 43,000-square-foot building, buying it from Elm Street Properties LLC, according to documents filed in the Erie County Clerk's office. The deal comes after another group, headed by Greenleaf & Co. and former banker Paul Kolkmeyer decided not to purchase the now-vacant building. Greenleaf had looked at the property as a possible residential conversion.

"Clearly, there will be a residential element that anchors the building," said Matthew Montante, an Elm/Michigan Holdings partner. "We are looking at what the market demands are."

Montante said tentative plans call for 25 apartments - a mix between one-bedroom and two-bedroom units - to be developed in the building's upper floors. The first floor may be converted into either a retail or restaurant.

Montante said his group is finalizing its development plans and will be presenting them to city officials this fall. Construction may start this fall or early winter.

"We'd love to have people in there by the third quarter of next year," Montante said.

The building was originally constructed as the E.M. Hager & Sons lumber mill, but in more recent years, it was the home of the Spaghetti Warehouse restaurant and, later, the SensationZ night club. The building was last occupied in 2004.

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