Updated 03/15/2013 04:51 PM
Xerox Square to be Sold to Buckingham Properties
Rochester's tallest building may soon have a new owner. Xerox has reached an agreement to sell Xerox Square to Buckingham Properties. Xerox would then lease back the building. It's a deal that's been in the works for a number of years.
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Ground was broken on Xerox Square in 1965. Three years later, the 30-story tower was fully occupied. It sits on more than two-and-a-half acres along Clinton Avenue in downtown Rochester.
Nearly 1,400 Xerox employees occupy 29 floors and will continue to do so. If all goes as planned, Xerox will relinquish ownership of the building within the next three months, then rent it back from Buckingham Properties.
"We started working on this project about five years ago," said Larry Glazer, Buckingham Properties. "We spent quite a bit of time working with Xerox on this building and on the Jefferson Road facility, and of course, Harris took the Jefferson Road facility. This project was put on hold for quite a while, then almost a year ago, we were approached by Xerox to talk again and we were very interested and we've been working on it for quite a while now."
Glazer says Xerox will continue to control the building and Buckingham will act as landlord. He says doing business with a corporation like Xerox and managing its building will allow Buckingham to do other projects.
Glazer believes this transaction will be good for downtown.
"For the greater good concept of Rochester, this is a really important project because now you know Xerox is going to be downtown for a long period of time. You never know for a company before they make that commitment if it's really going to occur or not."
Downtown leaders say selling properties and leasing them back is a growing trend for corporations that no longer wish to manage real estate. It allows them instead to concentrate their effort on strengthening their core business.
Xerox says that is its intention, as it will allow for a higher return. It's something the company has been interested in for a while and other corporations may soon follow suit.
"Bausch and Lomb isn't far behind. They own the Bausch and Lomb Tower and really don't want to be in the real estate business either, so that's another tower that's looking to find a new owner, similar situation as Xerox," said Heidi Zimmer-Meyer, Rochester Downtown Development Corporation.
Glazer would not disclose terms of the agreement or what the building is worth. He expects to close the deal within 90 days.