Le EU SUISSuIa IE Downtown Albany office buildings sell for $4.25 million yikes eas Rept, Abary Bushes ow ‘Ae 20,2016, 2185 EDT Updated A 20, 2016, 3pm ET A group of Chinese and US. investors paid $4.25 million in cash for two office buildings in downtown Albany, New York, but redevelopment plans {or one ofthe buildings might be shelved because ofthe lease terms with ‘the largest tenant, Bank of America Merrill Lynch. The deal for 69 State St, 6g State St, and an adjacent parking lot closed today, id Patrick Chiou, a 32-year-old Univers Albany graduate who is among the buyers. ‘The closing had been rescheduled afew times before the final signatures ‘were put on the documents today, “There were some hurdles we had to cross," Chiou sid ‘The seller was KBS Capital Advisors LLC, an affiliate of KBS Capital ‘Markets Group LLC, areal estate investment trust in Newport Beach, California, ‘The broker representing the seller, Rudy Lynch of Carrow Real Estate Services, declined comment, (Chiou and his partners bid on the properties during an online auction in February. He declined to identify the others in the group or say hove many there are. ‘The starting bid was $1.5 million,Chiou wants to convert a portion ofthe 16-story building at 69 State St. {nto upscale apartments — a growing ral es ‘that might be blocked by a provision in the Bank of America Merrill Lyneh lease. ate sector downtown — but ‘The exact restriction is unclear, but it apparently prohibits sharing space {in a building with residential nits. “There's something in the lease that is going to hinder us at ths point,” (Chiou said. "We're going to try to renegotiate it and work through some of | ‘these things (Chiou said he was aware of the lease restriction prior tothe closing, “The deal for us is still good,” he said. "The guys are happy with it.” ‘A Bank of America spokeswoman released the following statement: "I can’t confirm any details about our lease, but I can say that we have a long-term commitment to the Albany community and to this building in particular. We are very happy with how that relationship is going today and have no plans to make any changes to that commitment.” ‘Even if they can't pursue apartments, the buildings can be leased as offices, including possibly creating a shared office environment on one floor. The next step is to improve the property management and lower operating costs. “We have a bunch of ideas we're throwing out there right now,” Chiou said. ‘There's a Subway and MetroPCS store on the ground floor of 69 State St. ‘The other building at 63 State St. has just three stories and is empty. Both buildings have along history in Albany as bank offices. 69 State St. incorporates a brownstone facade that once graced the front cof New York State Bank, which opened downtown in 1804. In 1927, when the bank built a new 16-story building, the original building was demolished and its facade "was carefully dismantled and ‘moved 37 fet west along State Street so that it would the new building,” according tothe book “Albany Architecture.” atthe center of| 63 State St, known as the Manufacturers Hanover Trust Building, was built in 1874-75, Ithas a distinctive comer turret and is considered “one of the best examples of commercial Gothic Revival architecture extant in the US," according to a building-structure inventory form atthe state rks, Recreation and Historie Preservation, By Mchsi DeMas ~ Reporer, Aber BuioseRevw ‘20,2018, 2"9pm EDT Updated Ao 20, 2016, Spm OT RELATED CONTENT Chinese, US investors plant buy ‘storie downtown Albany bulings = ‘Albany willbe auctioned ‘historic bank buildings in downtown BayALBANY BUSINESS REVIEW eas Liste tarde pace ees See ee susscnisens AaouTaconacT Apps 8 rouow us pcos Sihbibarion Stata Sibectpin pot Us Ate ty ans =o ebie hoe oo Same bse ny ot The Bess Content Journats ‘Syndication ASS G ‘Americaninno pa Eton paeton — kets 36 sth — cok Lts- Conte feestereen eee poeta Manage your Account