Buffalo apartment complex sold for $1.3 million

Six years after transforming the vacant but historic former St. Claire Roman Catholic School into McDermott Lofts, developer Sam Savarino has sold the Buffalo apartment complex to a fledgling real estate investment group.

Savarino’s 169 Elk Street LLC sold the McDermott Lofts at 169 Elk St. to Elk Street Holdings LLC for $1.3 million, according to documents filed June 12 with the Erie County Clerk’s Office.

Elk Street Holdings LLC is a new real estate investment group, whose managing/partner member is Buffalo attorney Nicholas DeMarco.

DeMarco said this deal is the first that could lead to other transactions.
“It’s a stepping stone that could lead to other efforts,” DeMarco said.

Savarino said the sale of McDermott Lofts was a “bittersweet moment.”

“The building meant a lot to me,” Savarino said. “A lot. I didn’t want to sell it to just anyone. I wanted to sell it to someone who would be respectful of its history and who would be a good manager in the future.

Savarino added that he was looking for a buyer “who was in love with the building the same way I was.”

DeMarco said he and his partners would “honor and respect” the building and its history.
“We know this area as an integral part of the ongoing redevelopment of Buffalo,” DeMarco said.
Built in 1896, originally as St. Stephen’s School and connected to the nearby former St. Stephen’s Church, the building housed St. Claire’s School, which closed in 2016.

Savarino purchased the building from the Diocese of Buffalo, paying $200,000, and renovated it into a mixed-use property with a ground-floor office and 11 apartments. The offices and 11 apartments are rented.

Savarino named the building after Father Eugene McDermott, who founded St. Stephen’s Parish in 1879. St. Stephen’s was the second parish to be formed in Buffalo’s First Ward.

“The building serves as a dual gateway to the First Ward and Buffalo’s Valley neighborhoods.

The deal was brokered by Robert Stewart of Pyramid Brokerage of Buffalo.