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

The U.S. Food and Drug Administration has found a new downtown Buffalo home for its regional offices.

The FDA signed a 10-year lease to occupy 16,620 square feet in the Theater Place building on Main Street. The federal agency will occupy portions of the first and second floors, said William Huntress, whose Acquest Development Co. owns the building. The FDA is moving from Olympic Towers.

"For the most part, that fills up the building," he said.

The deal is forcing Acquest to shift the location of two tenants, Sue's Deli and Club Marcella, but both will remain in the building. Another tenant, Melanie's Sweets, moved out of Theater Place. None of the building's other tenants, including the popular Tralf nightclub, will be affected by the FDA deal, Huntress said.

"This adds to the vitality of the Theater District," said Michael Schmand, Buffalo Place Inc. executive director.

The FDA has 68 employees, according to Renee Miscione, spokesperson for the federal General Services Administration. With its lease expiring at Olympic Towers, the GSA put the FDA lease out to bid. Miscione said the bid was awarded through standard federal guidelines.

"It was our regular bidding process," she said.

Staying downtown was the agency's first preference, although other locations were in the running.

"This shows that the federal government has a commitment to keeping its offices in downtown Buffalo," Schmand said.

Huntress said the Theater Place renovation work has just begun. The FDA should be ready to move into new offices by early fall, he said.

Since acquiring Theater Place nearly a decade ago, Huntress and Acquest have worked to stabilize the tenant base. The building opened in the early 1980s but went through a series of owners and tenants before Acquest bought it.

"The FDA deal makes Main Street that much better by having 68 new workers there on a daily basis," Schmand said. "Anytime we get that many new workers coming directly to Main Street, it is a good thing for all of downtown."