Cleveland firm sells Amherst property [The Buffalo News, N.Y.]

Aug. 13--Developers Diversified Realty, the Cleveland investment firm that bought up a slew of former Benderson Development Co. properties six years ago, has unloaded another one, for $2.1 million.

The real estate investment trust, or REIT, sold 2545 Millersport Highway in Amherst, through DDR Southeast Millersport Highway LLC, to FRAD Holdings LLC, according to the deed filed with the Erie County Clerk's Office.

FRAD is registered to the 46th floor of 1345 Avenue of the Americas in New York City, which is the address of Fortress Investment Group, one of the largest global hedge funds and private equity firms, with more than $41.7 billion in assets under management.

The firm is an active player in the buyout world and agreed this week to pay an undisclosed price to buy consumer lender American General Finance from American International Group, which is unloading assets to raise cash to repay the federal government's bailout.

Among its other businesses, Fortress also has been actively engaged in buying bad mortgage debt and refinancing it into government- guaranteed loans that can be resold. It also has two subsidiaries that specialize in investing in commercial and residential real estate loans and properties.

Neither DDR nor Fortress returned calls seeking comment.

The acquired property in Amherst, at Millersport and Campbell Road, is home to a Rite Aid Pharmacy. It's located next to a Burger King restaurant and near Nina's restaurant, known for its frozen custard. The West-Herr Automo-

tive Group has a dealership across the street.

The sale by DDR is one of several other notable real estate transactions in recent days. In the city of Lockport, RBJ Properties LLC sold a 56-unit apartment building at 295-321 Beattie Avenue to LeBrun Estate LLC for $1.665 million.

RBJ is owned by Raymond Bova Jr., a Bowmansville investor, while the seller is another local investor who has now accumulated 120 apartment units in Erie and Niagara counties, said his attorney, Steven B. Bengart of Tonawanda. The buyer did not want to be further identified, Bengart said.

In Amherst, Robert L. Vacanti, president of Northeastern Appraisal Associates in Williamsville, paid $550,000 through an auction to buy a commercial office condo at 616 North French Road, Suite 1.

The property, located in North Forest Office Providers' West Amherst Office Park, had been owned by John Afshar and Afshar Consulting Group, but it was foreclosed on in January by RBS Citizens Bank. It was sold at auction along with two other nearby office suites that Afshar also owned, at 636 North French.

Vacanti said he plans to move his firm from its current location in the Walker Center in Amherst to the new site in October or November, following some minor renovations and equipment upgrades that are now under way. Located in the southeast corner of the office park at North French and Sweet Home roads, it will house about 35 employees.

The move will give the firm "much more" overall space, while also allowing it to consolidate its residential and commercial appraisal divisions, now in separate offices down the hall from each other, into one place, Vacanti said. With its national business booming in all 50 states, the firm is currently "beyond cramped," he said, with five appraisers working from one office, and others working remotely from home.

The new location has about 8,000 square feet of space, versus just 2,200 now for the residential group, so some of the appraisers who work remotely will now be able to work from the office.

"We'll have everybody under one roof, which makes for a little bit more efficient plan," Vacanti said. "Our company has just exploded in growth, and this space here in the Walker Center just isn't big enough. Business has been unbelievable. That's really spearheading our growth."

In other deals:

?¢ Rock Garden Properties LLC paid $400,000 to buy 2.5 acres of vacant land on Main Street in Clarence from Lawrence Schiavi, through 9500 Main Street LLC. The buyer, Paul Stephen, wants the land because it's next to the Rock Garden Court Motel that he owns at 9470 Main Street, at Goodrich Street, although he said he has no current plans for the property.

?¢ 735 Delaware Partnership sold the property at that address in Buffalo to 735 Delaware Partners LLC for $315,000. No other information was available.

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