Friday, April 02, 2010

Carestream Health Agrees to Sale Leaseback of HQ in Rochester NY

Democrat and Chronicle - April 2, 2010

Carestream Health Inc. is selling its seven-story building that houses its world headquarters.

The Rochester-based health imaging company that employs 1,100 people locally said it plans to remain in the Verona Street building and will sign a 10-year lease for most of the space with the new owner, Rochester property management firm Buckingham Properties LLC.

"We're staying right here," Carestream spokesman Robert Salmon said. "We just don't want to be in the property management business."

The building was put up by Eastman Kodak Co. in 1988 adjacent to its own headquarters at 343 State St. Kodak sold off its health imaging operations, which became Carestream, in 2007.

Terms of the sale to Buckingham Properties were not disclosed. Buckingham CEO Larry Glazer said he hopes to close on the deal by late June.

Carestream will continue to occupy all but the third floor of the building, Glazer said. With 61,000 square feet and adjacent parking, the space could be particularly attractive to firms looking to have a downtown Rochester location but not wanting to deal with parking issues. The space already has attracted some interest from prospects, though Buckingham has not yet begun to heavily market it, he said.

Salmon said part of the motivation for the sale is the fact Carestream had too much unused space in the building.

Companies selling off and then leasing back their own real estate is a common move in the business world as it can free up money for other uses. Xerox Corp. currently is looking to make a similar deal for the 30-story Xerox Square on South Clinton Avenue. Sphere: Related Content

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