D&C building sold to DHD Ventures, Morgan Management

The historic building that houses the Democrat and Chronicle Media Group will have new owners in 2016.

Democrat and Chronicle President and Publisher Michael G. Kane announced Friday that DHD Ventures of Rochester and Morgan Management of Pittsford plan to buy the building at 55 Exchange Blvd.

Terms of the deal were not disclosed, but it's expected to close in January. The two property development companies haven't decided on specific plans for the building, which had been listed for $3.5 million by real estate broker CBRE Rochester.

"We don't have anything concrete at the moment, but we're working on it," said Adam Driscoll, DHD's new business relations manager. "We prefer it not to sit idle for too long."

Once the paperwork is final, the two developers will own a 153,350-square-foot building that once housed the corporate headquarters for publishing company Gannett Co. Inc., the media group's parent company.

Morgan and DHD will have a 50-50 ownership of the building. Driscoll said the two companies decided to buy 55 Exchange for a few reasons, one of which is that they believe the building has been well maintained.

"It catches your eye when you walk in," he said. "It's in such great condition. This isn't a complete start-from-scratch project."

Driscoll said there are two possible options for the building. Ideally, the building would have a new set of business tenants, Driscoll said.

"We're talking to a few people, had some good interest, but nothing concrete at this point," he said.

Plan B, Driscoll said, is to use the building for an office, housing and retail mix.

"We think the side of the building on Broad Street with the great bay windows where the presses were is a great retail space, great for craft beer or a restaurant," Driscoll said.

DHD and Morgan are mulling these options because the Democrat and Chronicle is moving. The company's news, advertising, marketing, digital strategy, and business operations will move to a new, 42,000-square-foot facility under construction at East Main Street and South Clinton Avenue. Democrat & Chronicle staffers will occupy the first and second floors and there will be a coffee shop on the first floor that will be open to the public.

Kane said D&C staffers likely will move in May 2016. Pike Development Co., which is building the new D&C building, plans to rent out the third-floor space, Kane said.

The building at 55 Exchange was built in 1928, and has been on the National Register of Historic Places since 1985. Gannett co-founder Frank Gannett used the building to house his corporate headquarters, printing presses and the newsroom of the now-defunct Times-Union. The company expanded the building in 1949, 1957 and 1977. The D&C moved its operations to 55 Exchange in 1959.

Gannett moved its corporate headquarters to Virginia in 1986, and opened a production facility in Greece in 1997, where the company will continue to print and package the print edition of the Democrat and Chronicle and other print products.

Kane said there were several potential buyers for 55 Exchange. He and Driscoll said they're excited about this deal because it means two different buildings — the D&C's old and new headquarters — will contribute to a larger trend of revitalizing downtown Rochester.

"I can't wait to see what they're going to do with the building," Kane said.

KJBROOKS@Gannett.com