Hamburg, N.Y. (WBEN) - Going once, going twice... SOLD! The McKinley Mall bidding came to an end in an online auction on Wednesday. The final price before the end of the auction was $7.975 million, $525,000 shy of what it sold for previously in 2021.
The auction was originally scheduled for April, but was pushed to start on May 15th and end on the 17th. The starting price was $3 million and stayed stagnant for most of the day on Wednesday at $5 million, until the prices started to jump within the last 30 minutes of the auction. That bidding war extended the auction about 20 minutes past the original auction closure of 2:30 p.m.
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"There seemed to be some pretty heated action," said Town of Hamburg Supervisor Randy Hoak. "My hope was that we would see the price go above the previous purchase price of $8.5 million. But it's close enough. At the end of the day, it's a property that's in need of significant investment. So the purchase price is one factor, but the investment in the property is what's really going to make a difference long term for Hamburg."
WBEN contacted the sales brokers of Newmark to inquire about the buyer. We have not heard from anyone to date as to who the highest bidder was.
Several reports suggest that Seneca Nation had interest in bidding in the property. Recent reports from WGRZ-TV suggest that they did not place a bid.
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"If you look at it from a reproduction cost, or simply the value of the location, which is pretty spectacular, I think it's a bargain," said Peter Hunt, CEO of HUNT Real Estate. "The question becomes, 'How do they turn it into a productive part of our economy again?' I'm sure whoever bought it has very specific plans that justify paying what they did."
Both Hoak and Hunt agree that it would be much more beneficial for the mall to no longer serve predominantly as a space for retail sales.
"I think that there remains a base of retail activity on that property. I know that our residents in Hamburg enjoy frequenting those businesses. I don't know if there's enough retail demand for 730,000 square feet spread over 75 acres. So that would lead me to the thought that a mixture of uses might be more appropriate, might be more profitable, and be a better benefit to Hamburg's taxpayers, as well as the business community," said Hoak.
"I think something else has to be made of that property. The fact of the matter is, as a retail center, it wouldn't have been auctioned if it was was performing well," says Hunt. "The new owner, will have a plan and I have to believe that involves more mixed use property, which takes advantage of that location, perhaps for residential, certainly for some retail entertainment, perhaps even offices. There's a whole kind of rethinking process that's going into how people work, where they work, and when they work which could lead themselves to a nice mixed use project there," said Hunt.
The new Bills stadium coming in the next several years could spark significant ideas for developers to turn the property into something that could attract football fans from far and wide.
"I think that's a real opportunity. While the new stadium will still be located in Orchard Park, it's moving closer to the Town of Hamburg. The Town of Hamburg is certainly open to those different uses. We are looking at creating a stadium zoning district so that we can be more responsive and more nimble in supporting development in that area from the new Bills stadium, all the way to Exit 56 at Mile Strip road," Hoak said.
Hoak adds that any creativity that may come to the McKinley Mall will certainly be welcomed and entertained.
"I think the consensus in Hamburg and among the decision makers in the town is that it's a valuable piece of property with robust potential. We'd like to see that potential maximized. If that is an increase in retail, if that works for the market, absolutely, we can get behind and support that. However, if there's more creative ideas, more innovation that can be brought to the property, we'd be happy to support the new owner in exploring those options and making sure it's a good fit for the community."