The potential new owner of the Buffalo Bills is also seeking to buy Buffalo’s tallest building. Terry Pegula has his sights on One Seneca Tower, the nearly-empty 38-story building that straddles the foot of Main Street and is in receivership.

In late July, Pegula Sports & Entertainment leased 17,348 sq.ft. on the 31st floor of the tower leading some to speculate that there was more to the transaction than just a need for office space. That appears to be true.

Jim Fink has the story which has been floating around downtown in recent weeks:

Rumors remain rife within economic development circles that Pegula may be interested in buying the tower. Sources say the deal may be predicated on Pegula successfully acquiring the Buffalo Bills. Others say with Pegula’s business interests growing, he may be interested in the building regardless of the Bills’ sale process.

Sources said Pegula would use the building as the headquarters for Pegula Sports & Entertainment Group offices, which this summer, agreed to lease the building’s 31st floor. The lease is just for one year, the most allowed as part of a complex series of legal issues surrounding the building and its future. One Seneca is very near First Niagara Center, where the Sabres play, and the nearly complete HarborCenter, a $172 million hockey complex that is financed by Pegula.

However, both the Buffalo Sabres organization and the building’s receiver deny any such deal for the tower is in the works.

HSBC vacated the tower when its lease expired in late 2013. Bank employees occupied 2/3 of the building, or 650,000 sq.ft. Law firm Phillips Lytle moved to One Canalside and the tower lost tenants Capital One Financial, PricewaterhouseCoopers, the Canadian Consulate, and others. The exodus left the tower over 90 percent vacant.

Seneca One Realty LLC had begun exploring options including adding residential and/or hotel space to the building. The owner brought in a panel of Urban Land Institute (ULI) professionals to study possible new uses and a redevelopment strategy for the building. Their recommendation was to convert the building into mixed use to include office space, rental and for-sale residential, a hotel, and ground-floor retail.