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McKinley Mall gets high bid of $7.975M at auction

The online auction closed Wednesday afternoon.

HAMBURG, N.Y. — The McKinley Mall online auction ended on Wednesday afternoon with a high bid of $7.975 million. Bidding started at $3 million on Monday.

2 On Your Side only knows of two groups that publicly expressed interest in buying the mall this time: Seneca Nation and Benderson Development. 

A spokesperson for the Senecas told 2 On Your Side on Wednesday afternoon that the Seneca Nation opted not to bid on the property. As of Wednesday evening, 2 On Your Side had not heard back from Benderson Development.

"My hope is that we have a buyer that realizes they got a great deal on the property, and they're willing to step up and invest in it," Hamburg Town Supervisor Randy Hoak said.

Hoak says the highest bid in the auction to buy the McKinley Mall of just under $8 million is one thing, he would like to see improvements made that will benefit taxpayers.

"The purchase price is one thing, but this is a property that will be in need of some investment for new use, so my hope is that we have a buyer that realizes that they got a great deal on the property and they're willing to step up and invest in it," Hoak said.

And that's because in 2019, the mall's assessed value was $22 million. In 2021, Kohan Retail Investment Group paid $8.5 million for it, and Wednesday, the highest bid was $7.975 million.

Two years ago, the mall was 70 percent filled. Today, it is 55 percent filled.

"It's been a big hit to the town taxpayers in the last few years since their assessment was reduced due to an $8.5 million purchase price. This is in the same ballpark, so not exactly the trend I was hoping for, but we're right in that spot there," Hoak said.

Hoak says he would like to see the mall become mixed-use.

"I think it has a lot of potential. There are some nice tenants in there. It's at 55 percent occupancy, and I know residents of Hamburg enjoy going to those businesses as well, so I'd like to see a little bit of retail and then maybe get creative with the rest of the property," Hoak said.

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