State gives Sinatra & Company $4M loan for Heritage Point project
BUFFALO, N.Y. (WIVB) -- Sinatra & Company received a $4 million loan from New York State to continue the stalled Heritage Point project at Buffalo's Canalside.
What will become of the seemingly abandoned $40 million project that began in March 2021 has finally been answered.
“We are in a good place now," said Nick Sinatra, founder and CEO of Sinatra & Company Real Estate. "We sat down with them and the lenders and we got this deal done."
After months of talks with the state and lenders, Sinatra told WIVB News 4 the additional funding will be used to complete the waterfront project, which includes two mixed-use buildings to be used for retail, restaurants and office space.
“We've invested $12 million of company money into the project," Sinatra said. "Our commitment was strong from day one and we're committed to doing more in conjunction with the state, and the financing facilities that we brought to the table."
Sinatra said 40 percent of the project was already completed before financing dried up. He attributed higher interest rates, the price of materials and COVID-19 to halting the work in early 2024.
Sinatra said the loan from Gov. Kathy Hochul and Empire State Development is only payable upon "substantial completion" of the project and has already filled an $8 million gap.
“There needs to be a bridge from a private lender into the project throughout the actual construction because contractors aren't going to wait until the end of the project to get paid,” Sinatra said.
Buffalo Common Council Member Mitch Nowakowski was adamant in November that the project gets completed and is happy with Tuesday's outcome.
“When you think about it, Marine Drive is going to have a complete overhaul that's just across the street from it," Nowakowski said. "To be able to have that residential component for people to also not just have that transactional density of people coming in and seeing it, but also making it their permanent residence, is incredibly important to the progress of Canalside in the city of Buffalo."
The Canalside community is also excited by the news, including President and CEO of the Buffalo and Erie County Naval & Military Park Paul Marzello.
“The old saying of a high tide rises all boats is true in this case. We want to make sure that everybody prospers," Marzello said. "To see this project off the ground, moving forward just depicts a community that's on the move, that's progressive and it's exciting to see what will become of it."
Crews are expected to return to the site and start work again this April, with construction completion scheduled for June 2026.
Watch News 4's interview with Sinatra from Tuesday in the video player below.
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Dillon Morello is a reporter from Pittsburgh who has been part of the News 4 team since September of 2023. See more of his work here and follow him on Twitter.