May 21, 2014|
Automatically Generated Transcript (may not be 100% accurate)
We're talking about one Seneca -- former HSBC tower the tallest building on buffalo skyline at 38 floors and Jim think is in studio. He's the economic development and real estate reporter for Buffalo's -- first -- to -- -- -- thank you for having me. 95%. Vacant and in foreclosure. And YouTube then. You -- covering buffalo development for. After forever 25 maybe even longer trying to and you're almost one hitter and you mention that -- that we would be in this position with that building. It was not a surprise. HS BCE. For the past five years basically told everybody there was listening they're very -- future in buffalo did not include. Being in that building. At its peak HSBC hit point two floors are part 650000. Square feet of the building. But that's -- and out of come to a surprise to anybody that you know they downsize and in terms of downtown buffalo must mostly they're centered on the -- term which is a block away. Yeah Phillips -- same thing there lease was coming up this was not a surprise that they were looking. There every developer in the city was. Trying to and have them they end up going to do one canal aside for retirement building and it's been a great billion that's been great for buffalo. So. What is -- with the tower. To most. Observers was not a surprising Tuesday was coming so this knee jerk reaction of almighty god oh my god this guy is -- You know then. And it certainly -- -- that just. Maybe that person the people really weren't paying attention. Well yes. On the minds of most people -- what is going to happen to the building and important. Importantly. How -- -- -- excellent -- Various let me answer the last part first. That's an unknown. What is going to happen is at some point. They'll be a formal bankruptcy and foreclosure proceedings. And who at some point the building will probably go to foreclosure auction somebody will step up and buy it for probably. Five -- -- ten cents on the dollar which means the end up paying. Maybe five to ten million dollars for the building maybe. Maybe even less we've there's a case history the stellar. Of -- -- and -- for 200000. Dollars. What are some of the options that have been mentioned for us -- obvious C. Offices one at least some portion of keeping it -- office. Is one viable option. They're talking hotels but I think I quite honestly in my opinion. Downtown ball was getting over a hotel with all these new hotels that are either coming online or about to come on line. And then you have people talking of our residential that is I and I know there's some people that question and I think if you too young performers. In turn him into upper scale. Apartments that might be a viable option. One point there. Couple months ago summary suggests using part of the building is a powerful convention center that does not make sense because if you do that you would cut. The current convention center and you would destroy all the businesses in the infrastructure around the current convention center. There's other options and issues for the current problem conventions that do not involve moving it. So mixed use right now seems to flow to the top. That's used to be the obvious choice it's 851000. Square feet that's a lot of real estate in its. It's not well some of the lower fours are spread out but mostly it is. Vertical space. 850000 square feet could be. You can't just be one thing anyway that's no humor columnist. -- that day the day's news. And especially in America like a flow of that being a single use buildings are long gone. Those probably disappeared. It's summer during the first Roosevelt administration.