A soft economy coupled with rising construction costs and unstable interest rates has prompted a prominent local developer to put the brakes on a proposed downtown apartment project.
Iskalo Development is delaying its proposed conversion of the former Old Editions bookstore at 68-76 East Huron Street because of current market conditions, confirmed David Chiazza, Iskalo executive vice president to Buffalo Toronto Public Media’s Jim Fink.
“Between high construction costs and interest rates, it's hard to make projects pencil out. We're not the only ones in this position, but we need to kind of just forestall starting the project until market conditions improve,” Chiazza said.
Iskalo wants to turn the former bookstore into a building anchored by 28 apartments and some street level commercial or retail space.
The building neighbors a cluster of downtown properties - mostly along Ellicott and East Huron streets that developer Douglas Jemal hopes will anchor the planned “Electric District” neighborhood within the central business district.
Iskalo has dubbed the four-story, red brick building the Bookstore Lofts. Portions of the building dates back to 1878. Old Editions moved from downtown Buffalo to Oliver Street in North Tonawanda. It remains open.
The Bookstore Lofts project carries a $6.4 million development price tag. Chiazza said Iskalo remains committed to the Bookstore Lofts project.
“Hope is that over the course of the next 12 months that circumstances approved to the client or that project can proceed,” Chiazza said.
Work, potentially, could start within the next year.
