By JAMES FINK
jfink@bizjournals.com | 716-541-1611

A Vancouver investor who made his first visit to Niagara Falls just days ago emerged as the top bidder for the historic Hotel Niagara.

Jamal Kara bid $1.25 million for the 12-story, 145,000-square-foot building. It was the highest of 31 bids submitted during a hectic, five-minute-long process run by the Chartwell Group commercial real estate division and auctioneer Gordon Greene, a Chartwell executive.

Kara outbid Harry Stinson, a real estate developer and investor from Hamilton, Ont., whose top bid was $1.225 million. Bidding started at $150,000 for the long-vacant building, which dominates the Niagara Falls skyline.

Kara said his group was willing to bid up to $2.5 million for the Hotel Niagara.

"I would have chased it," said the 30-year-old investor. "At $1.25 million, this is a steal."

Greene said more than 10 groups registered to bid, representing three Canadian provinces and five U.S. states. The auction attracted more than 60 observers.

Including the 7.5 percent buyers premium, Kara's investment group will pay $1.34 million. Closing is expected by Memorial Day.

Tentative development plans call for a mix of upscale condominiums and a five-star boutique hotel, Kara said.

He estimates it will take at least $10 million and two years to complete renovations.

The work will be privately funded, he said, adding, "It's already financed."

He expects to use union contractors to handle renovations.

It's the first U.S. deal for Kara and his investment group. While declining specifics, he said the group has developed high-rise condominiums in Vancouver and recently completed the conversion of the former Hamilton (Ont.) Spectator newspaper printing press building into a loft-style condo complex with 50 units. It spent $3.1 million to buy the downtown Hamilton building and completed renovations in one year.

"Everyone thought it would take us three years," Kara said.

Stinson, meanwhile, said he is willing to step in if Kara's bid falls apart. He has been scouting Western New York for development possibilities.

"I am certainly interested in doing something here or in Buffalo," he said.