Scranton group purchases Stegmaier mansions for $3.1 million

WILKES-BARRE — Joe Matteo, who purchased, remodeled and restored two mansions on South Franklin Street, has sold them to a Lackawanna County group for a total of $3.1 million.

The Mary Stegmaier Mansion at 156 S. Franklin St. was sold for $1.75 million and the Frederick Stegmaier Mansion at 304 S. Franklin St. was sold for $1.4 million, according to Luzerne County records.

John Basalyga, President of Basalyga Hospitality, confirmed on Tuesday that his company — Stegmaier Mansion Realty LLC — has purchased the two historic downtown buildings.

Basalyga, 45, also said that a deal is near on his purchase of the former First National Bank building on Public Square. In September, Wilkes-Barre City Council approved the sale of the building for $450,000 to Basalyga, who council and explained his proposed plans for the century-old building include a fine dining restaurant and music venue.

“We are close to closing the deal on the building,” Basalyga said. “And we have secured a liquor license for that site as well.”

Mayor George Brown at Tuesday’s combined work session and regular meeting confirmed that the deal was nearing completion, and he expects it to close sometime in January.

Regarding to two Stegmaier mansions, Basalyga said he both are beautiful buildings and he commended for bringing them back and restoring their grandeur.

“We intend to do some different things, but we will be sure to pay homage to the Stegmaier family,” Basalyga said.

At the Mary Stegmaier building, Basalyga said all custom furniture will be featured in the fine dining area that will compliment the decor of the building. He said he will also redesign the bar area and enhance the second floor level that will be used for weddings and other events. Basalyga said the restaurant will be open four or five days a week.

Basalyga said the Mary Stegmaier restaurant will open in 2025.

Basalyga said the Fred Stegmaier building needs some work refreshing the outside and grounds. He said the building currently operates as an Airbnb with eight to 10 rooms. He said he will develop a plan as far as future use of that area.

When reached on Tuesday, Matteo said it was the right time for hims to sell and retire.

“It was very important to find somebody who would keep the vision going,” Matteo said. “When we reviewed everything he has done, it was obvious that he cares about the area — especially Scranton and Wilkes-Barre.

“I also intend to get back into playing the piano,” Matteo said. “In fact, I will be playing in the Mary Stegmaier fine dining room.”

On selling the two mansions, Matteo paused and said, “Both of those buildings will always have a special place in my heart.”

Brown also spoke highly of Basalyga following Tuesday’s council meeting.

“I am very, very happy that Mr. Basalyga is coming to Wilkes-Barre and investing just like he did in Scranton. It’s going to be a wonderful partnership with the city and I can’t wait to see what he’s going to do,” he said.

Basalyga operates several businesses/restaurants in Northeastern Pennsylvania. More information can be found at — https://www.basalygahospitality.com/about

Basalyga said he owns two other buildings in Luzerne County, including Serenity Healthcare in Kingston. He said his company owns, manages and operates more than 2 million square feet of real estate throughout the region — including strip malls, corporate centers, commercial space, retail space, a movie theater, personal care facilities, restaurants and more.

Additionally, the Basalyga Group employs over 700 people.

Margaret Roarty contributed to this report.