Buffalo Rising Online

Aug 3rd 2007, 12:48pm By queenseyes

This post is dedicated to STEEL - the eternal optimist. It's also dedicated to BRO viewers whose interest in a burned-out mansion prompted its new owner to save it. Here's the story:

Most BRO viewers are familiar with Mike Hananel… the real estate investor (Horizon Realty) from LA who has recently purchased more than 500 units in the city of Buffalo. After spending a year ‘straightening out’ his apartment portfolio, Mike has not only come to love Buffalo, he has decided that there are others just like him who should be investing here.

(See Video Part 1) (See Video Part 2)

So meet Gian Franco Bertolino– a buddy of Mike’s from LA that has been hearing about our city for six months now. After first learning about what Mike was up to here, Gian Franco hopped on a plane to visit. The three of us spent a couple of days driving around the West Side and other parts of the city, pointing out numerous properties. One of those properties happened to be a burned out Victorian mansion (see Steel's post) and 32-apartment dwelling combination (see bottom photo). The burned out problem property (Sandy I know that you’re listening) was destined for demolition until Gian Franco showed up. He was intrigued by Steel's post and the photo that went with it. He discovered that people cared deeply for these properties and decided that he wanted to contribute to the city’s growth… not its problems. Even a lending institution told him that he would be ‘okayed’ for a loan, but not for a rehab... only for parking.

Gian Franco accepted the loan for the neighboring apartment complex and decided to put his own money into restoring the mansion. “It would have been easy for me to put in parking,” Gian Franco stated. “I see something much better. I see a neighborhood and history here.” (see 425 Porter)

After inspecting the Victorian, we took a walk through the apartment building. As we walked, Mike (who will be managing the properties) and Gian Franco, took a laundry list of 'needs' for all of the vacant apartments. They pointed out where new cabinets would be installed, and which kitchens needed to be remodeled. They even took time to talk to the tenants to find out what they needed to make the complex a better place to live. And the cat smell... that's getting tackled first. One gentleman told them that almost all of the washers and dryers were broken. “We’ll add it to the list,” Gian Franco told him.

The beautiful thing about the relationship between these two friends/LA investors is that Mike has already been through hell regarding his properties and he feels that he can orchestrate a much smoother ride for Gian Franco. “Buffalo is very different when it comes to property management,” Mike said. “If I had dipped my toes in the water instead of diving in head first I would have pulled out. Now I want to help other legitimate out-of-town investors. I want to show them the ropes. In this city you have to know the ins and outs. I would love to meet with The Mayor to discuss my experience… and someday I’m going to write a book.”

The good news doesn’t stop there. Gian Franco also picked up another apartment complex at 277 Linwood Avenue. And that property came with hidden carriage house in back (see top photo). The apartments are in pretty good shape, and of course this is one of the premier avenues in the city. Like Mike, Gian Franco is making a long-distance investment/commitment, and is excited to pick up, and fix up, these dwellings that would be untouchable in a city like LA. You may remember that Mike now owns multiple units on Johnson Park, Virginia, Elmwood, Ferry, and a few others. He has implemented ‘no tolerance’ polices in all of his properties and will be doing the same for Gian Franco’s investments.

After signing the deals, a few of us headed to Allentown to celebrate and enjoy the Infringement Festival. Mike and Gian Franco continue to explore the city and are very interested in its history, while being amazed at the opportunities. Don’t be surprised if you hear more about their adventures in Buffalo down the road.