Baileys buying tech building at 75 Broad.

The New York Technology Center at 75 Broad Street, a/k/a NYTECHX, is now under contract to Morris Bailey's sons-in-law, Joseph Jerome and Raymond Chalme.

"We have a great family operation," says Jerome of their holdings, that include a piece of 866 Third Avenue, which has office and Marriott components, and another new buy, the McAlpin.

"We own many office buildings and Herald Center, and we'd like to diversify," he explained of acquisition of the 585,000 square-foot Downtown property, often described as a "carrier hotel." Rather than overnight guests, this "hotel" is for tenants that include World Com, e.spire and a smattering of law firms that value the high-speed Internet access, antenna farms and other hot-wired provisions.

The building, a/k/a 67 Broad Street, was constructed initially for ITT's high-tech operations, and is only one of two city buildings that boasts a trans-Atlantic cable. The other is 60 Hudson Street, a nearly 1 million square-foot building owned by an entity said to be controlled by Stanley Stahl. CoStar shows that property as fully rented, but for some retail space available through GVA Williams.

"It's going to remain a telecom building," Jerome said of their soon-to-close purchase. "It has the international cables, and that's a big advantage." They will be investing money into the building, and adding even more back-up power, he said.

With city tenants clamoring for better access to the technologies that now run their businesses, the stable ownership with its long-term financial commitment should boost its currently half-empty status.

"There is substantial leasing activity and leases are out and deals are pending on approximately an additional 250,000 square feet," said William G. Cohen, executive vice president of Newmark & Co., who is the agent for the building. "It's an exciting industry. It's explosive."

Once the current ownership was convinced its infrastructure made it more valuable as office than a residential conversion, Cohen was able to market the property by promoting its unusual infrastructure. It also has a web site at nytechx.com.

"The building offers extreme bandwidth by virtue of the fact it has seven major fiber providers in the building, which combined with its heavy floor-loads and vast supply of power, make it an ideal facility for high-tech tenants ranging from telecom to ISP's and beyond," added Cohen, who declined to discuss the pending sale.

The property was one of three Downtown buildings - the others were 19 Rector and 39 Broadway - contracted for by Steve Rosenberg and Lance Wilson's Greystone & Co. in 1997, which they intended to convert to residential usage. Instead, they will now have sold them all.

Greystone's 67 Broad deal was made directly from Principal Mutual Life Insurance and closed in January, 1998 for about $45 million.

As for the McAlpin, which the family is acquiring after a short stay in the Ian Schrager hotel portfolio, Jerome says they intend to reposition the Herald square property as a market rental and are bringing in Execustay, the Marriott acquisition, to manage about 75 to 80 of the units as a furnished, long-term stay property, as well as providing business and other services.