April 24, 2018 05:42 PM
(ABC 6 News) - The California developer who bought the IBM campus in Rochester was in town Tuesday talking about their future plans for the 3 million square foot facility.
"We're excited to finally be here, meeting the people, launching. It’s a great day for us,” said IRG President, Stuart Lichter.
IRG owns over 100 million square feet of real estate in 28 states and hopes to replicate what they've done elsewhere here in Rochester.
"We'll update the facility, we'll make the systems more logical, we have great marketing leasing and we have a focus on developing extra land," said Lichter.
Olmsted County valued the property at more than $60 million dollars, but IRG paid nearly half the price at just under $34 million.
So how did IRG get such a good deal?
"Usually when these big facilities either close or the company contracts, the prices don’t reflect even a percentage of the construction cost of the facility new because of all the cost of making it practical going forward," said Lichter.
As community members gathered and IRG welcomed them to its new asset, a question comes up as to why they wanted to own it?
"It was the quality of the infrastructure, the strength of this facility, the labor force in place and the foresight of the community to invest in themselves," said Onno Steger, Director of Real Estate for IRG.
In the 18 months, or so that IRG closed on the property more leases have been signed and that growth is continuing.
"With their exceptional record of redeveloping industrial properties I think it's a great opportunity for Rochester and for this property to become something new and different," said Jamey Shandley, President of Hamilton Real Estate who works with IRG.
Now that the new developers have taken over there is a new name in place. The property will no longer be called the “IBM campus.” Instead, it will now be called the "Rochester Technology Campus.”
Created: April 24, 2018 05:42 PM
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