Buffalo Apartment Complex Sold for $1.3 Million

Six years after turning the vacant, but historic, former St. Claire Roman Catholic School into the McDermott Lofts, developer Sam Savarino has sold to 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 in the Erie County Clerk's office.

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

DeMarco said the deal is the first for what could lead to other transactions.
“This is a stepping stone that may led to other endeavors,” DeMarco said.

Savarino said selling the 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 was going to be respectful of its history and be a good steward going forward.”

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

DeMarco said he and his partners will “honor and respect” the building and its history.
“We know this area in integral for Buffalo’s continued redevelopment,” DeMarco said
Built in 1896, originally as the St. Stephen’s School and connecting to the neighboring former St. Stephen’s Church, the building had been home to the St. Claire School under it closed in 2016.

Savarino bought the building from the Diocese of Buffalo, paying $200,000 and renovated into a mixed-use property with one street-level office and 11 apartments. Both the office space and all 11 apartments are leased.

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 neighborhood.

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

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