Seattle man buys Armory Square building

CNY Business Journal (1996+), Mar 12, 2004 by Rombel, Adam

SYRACUSE - A Seattle handy man with experience in rehabilitating buildings has purchased an Armory Square property from an Atlanta manufacturer and plans to spruce it up for apartments or office space.

Kurt Graham, a Seattle-based, realestate-owner specializing in renovating and developing fixer-uppers, has bought the nearly 20,000-square-foot, red-brick building at 200 Walton Street (at the comer of South Franklin Street) for $450,000 from Lintel Manufacturing, Inc., an Atlanta company owned by former Syracuse resident Albert Lintel.

The nearly 65-year-old property which comprises three buildings (two are four stories and one is three stories) in one was originally listed at $525,000 by Barmonde Real Estate. It took about one month to sell, according to Terry McClurkin, associate broker with Sutton Real Estate Co. LLC and Graham's agent in the transaction.

Graham was attracted to the property. and the Syracuse market in general, because of the low price. Graham also recently sold a building In Seattle for a large gain and was eager to put the money into another property for the purpose of delaying the onset of capital-gains taxes, McClurkin says.

"Of course, the prices in Seattle [for commercial property]are quadruple what. they are here," says Graham. "When you have a big gain, the smart thing to do is reinvest that money into another property."

Lintel - who used to operate Misener Manufacturing Co., a maker of hole saws, at the Walton Street building before moving to Atlanta a few years ago - sold the property because it was difficult to continue managing it from such a distance, McClurkin explains.

The Walton Street property, which is about 50 to 60 percent occupied, contains a bar, a tobacco shop, and a picture-frame store on the first floor, and a beauty salon and accountant's office on the second floor. The upper two floors are unoccupied and need significant renovation.

"It's going to take a lot of renovation and a lot of money but that's where the upside on this property is,'' says McClurkin. "[Graham is quite a skilled craftsman."

Graham is likely to turn the upper floors of the property into loft-style apartments, though converting it into office space is also a possibility, says McClurkin.

Apartments and condominiums in Armory Square have been red hot in recent months, while available office space is more plentiful. McClurkin says he believes apartments at this location could start at $800 to $850 a month for onebedroom pads.

"There's a lot of demand for apartments," he says. "I think we'll go with apartments."

McClurkin, whose firm will likely manage the 200 Walton St. property, adds that he and Graham will soon sit down to discuss the renovation and how to configure the non-retail space.

Buzz Hartnagle, who along with his wife Kathie has owned the Mallard Tobacconist shop on the first floor of the building since 199 1, says, he'll stay under the new ownership "as long as the rent doesn't go up."

Lizbeth Addison, who owns the "I've Been Framed" retail store next door, says she'll probably stay as well. She says the location has largely been good for her business, and that adding apartments above her store wouldn't bottler her.