A newly formed partnership among several owners, including local developer Laurence Glazer, is buying Xerox Square in a $40 million deal that will keep Xerox Corp. in the tower for at least eight more years.
The sale of the building, the tallest in Rochester, was expected to close today.
Glazer, CEO and managing partner of Buckingham Properties, said buying the building was a logical business decision.
"It’s a beautiful building," he said, and the deal keeps Xerox Corp.’s operations downtown.
Under the agreement, 100 S. Clinton LLC will assume ownership of the building, of which Xerox will be the sole tenant. The lease arrangement is for eight years with an option for Xerox to renew, Glazer said.
Buckingham Properties is taking over property management and has hired an on-site manager for the building, Mark Glickman, who previously worked in facilities management for the University of Rochester.
Buckingham is hiring additional people for Xerox Square and estimates the staff could grow to 10 or 15. The business also will manage security and food service operations for the building, outsourcing personnel for those services.
Glazer said it took roughly a year to complete the deal. The building, where roughly 1,400 people work, went on the market in 2009.
Xerox Square consists of the 30-story tower, a two-story annex and a four-story auditorium, with a total of 850,000 square feet of floor space. The land area is 2.7 acres.
The auditorium seats 700 people, and the Xerox Square location includes a two-story underground parking garage.
Ground was broken on June 28, 1965, and the building-which stands 444 feet above street level-was fully occupied by August 1968.
Selling a building is not new to Xerox. In recent years, the company has sold several in Monroe County, including Building 801 on Jefferson Road in Henrietta to Harris Corp.’s RF Communications division and the Xerox Recreation Center in Webster to the town.
In other areas, Xerox consolidates facilities where it makes sense, including moving its headquarters to Norwalk, Conn., from Stamford, Conn., and consolidating facilities in New York City and Dallas.
Buckingham Properties was No. 1 on the Rochester Business Journal’s most recent list of real estate developers, ranked by total local non-residential square footage. It ranked second on the list of property management firms behind Wilmorite Management Group.
Glazer is also involved in other downtown projects. Buckingham and Morgan Management LLC have teamed up on the $55 million renovation of Midtown Tower. The acquisition of the 17-story tower is expected to close this fall.
That project is to result in retail space on the first floor, office space on the second and third floors, and pet-friendly residential apartments on the upper 14 floors. The project will include a dog park outside the building.
8/2/13 (c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email firstname.lastname@example.org.