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

Developer Rocco Termini has purchased the Hotel Lafayette.

The transaction was completed nearly two years after talks began regarding the salke of the downtown Buffalo landmark.

Termini, through his Signature Development, paid $500,000 for the hotel, according to documents filed in the Erie County Clerk's office. The hotel had been owned by the Alphonse Hotel Corp., a New York-based investment group.

Termini plans to invest $40 million to renovate the 107-year-old building into a mixed-use property anchored by 115 apartments, a 34-room boutique hotel, retailers and a banquet operations. The building will be rebranded as the Hotel at the Lafayette and is due to welcome guests and tenants by June 2012, Termini said.

The apartments will feature a mix of one-bedroom and two-bedroom units.

Catering operations including those in the former Lafayette Tap Room space will be run by Earl Ketry of Pearl Street Brewery & Grill and William Koessler, who last week bought Harry's Harbour Grille and will renovate it into the Aqua.

Among the retail tenants moving into the building are Woyshner's Flower Shop, Andrew's Jewelers, Butterwood Desserts and Get Dressed. All are coming in as Termini is developing a one-stop shop for weddings at the building.