Statler Towers lose major tenant

BUFFALO, N.Y. - The law firm of Hamberger & Weiss has become the latest tenant to leave the financially struggling Statler Towers.

The firm, which leased 14,000 square feet in the Statler, plans to move into approximately the same amount of space in Main Place Tower. It was one of the largest tenants remaining in the Statler.

The Buffalo landmark is at the center of a complex series of lawsuits and legal actions.

The 18-story building, which is owned by BSC Development Buffalo LLC, has been placed into involuntary Chapter 11 protection by the Western District of the U.S. Bankruptcy Court.

BSC Development Buffalo’s managing member, British investor Bashar Issa, is facing legal and financial issues in Buffalo and Manchester, England. He has not been in this area in more than 18 months.

The fate of the building, which overlooks Niagara Square, rests with U.S. Bankruptcy Judge Carl Bucki who is presiding over the case.

Bucki is expected to set a foreclosure auction date in the coming weeks – a move that could lead the way for the Statler to land in some new hands.

Long Island developer Uri Kaufman is considering making a bid for the building and converting the bulk of it into market-rate apartments.

In the meantime, real estate broker Tom Zawadzki is working with a group of out-of-town investors who are considering making a bid for the building, sources said. That group would use most of the building as a hotel, with some residential and commercial space included in the mix.