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IT Hub and IBM Heading to Key Center

The south tower of Key Center will not be empty very long after Delaware North Cos. relocates its headquarters to 250 Delaware Avenue in late-2015.  The State has selected Key Center as the site of the Buffalo IT Innovation and Commercialization Hub which IBM has agreed to anchor with 500 new jobs.

New York State’s Fort Schuyler Management Corporation (FSMC) is working with McGuire Development Company to develop the new site.  Seven property owners submitted proposals for the project in downtown and the Larkin District. The state will buy the south tower’s office space as a commercial condominium.

According to the request for proposals released in April, the facility needs 100,000 contiguous square feet that must be made available for completion of the entirety of its improvements as soon as possible but no later than October 1, 2015.  The property must also be able to accommodate between 50,000 and 100,000 square feet of expansion space for purchase by FSMC.  That times nicely with Delaware North’s move that threatened to leave a significant block of office space vacant.

The seven properties considered for the Hub according to The News were:

Other buildings whose owners responded to the bidding request included the Bank of America Building at Fountain Plaza, Main Place Liberty Group’s Main Place Mall and Tower, Uniland Development Co.’s 250 Delaware, Krog Corp.’s 701 Seneca, Krog’s Trico Building and Savarino Cos.’ 500 Seneca, according to sources with knowledge of the selection process.

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There are no details on where an interim Hub will locate.  From the RFP:

If the proposed property is unable to accommodate the full 100,000 sq.ft. by November 1, 2014, but will be able to accommodate the Facility within a reasonable timeframe after that date, FSMC may be willing to enter into a short-term lease for 25,000 contiguous sq.ft. of office space made available to it no later than June 1, 2014.

Key Center currently has vacant office space including 30,000 sq.ft split between each tower’s third floor and 15,000 sq.ft. on the 14th floor of the north tower.  So does the adjacent Bank of America building also owned by Key Success LLC.  Both properties are managed by Ciminelli Real Estate Corp. for the downstate owners.

Written by WCPerspective

WCPerspective

Buffalo and development junkie currently exiled in California.

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