New York State has announced Douglas Development submitted the winning bid of $4.1 million at public auction for the five-story Walter J. Mahoney State Office Building in downtown Buffalo.
The state Office of General Services has no further use for the 69,000-square-foot building, located at 65 Court St. at Niagara Square. The building has been the continuous home to numerous state agencies and politicians since its opening in 1931.
The state has been working since 2019 with real estate consultants and city, county and state officials to sell the property. The sale process was delayed by the COVID pandemic.
Developer Douglas Jemal said he is considering redeveloping the building into a hotel. His other holdings downtown include the Seneca One tower, Statler City, the former Buffalo Police headquarters and the former Hyatt Regency Hotel. He also recently purchased the Boulevard Mall in Amherst.
Property closing and transfer the facility is pending final state approval and could take several months to complete.
