38 Studios chooses Providence building

PROVIDENCE, R.I. (WPRI) - Curt Schilling's video game company, 38 Studios, has chosen an office building in downtown Providence for its new headquarters.

The company said Thursday it has executed a lease for the six-story, 104,316-square-foot One Empire Plaza building, which has been vacant since Blue Cross & Blue Shield of Rhode Island relocated to a new facility near Providence Place mall.

The location is bordered by Empire, Washington and Walnut streets and includes a pedestrian plaza. It is next door to the Providence Public Library's central branch and across from the nonprofit arts group AS220's headquarters. (The building's actual address is 417 Westminster St., according to city records.)

38 Studios did not say when it expects to start moving some of its 175 employees into the building. The company is expected to announce a relocation date by Nov. 30 and have at least 80 workers at One Empire Plaza by Feb. 28, according to a draft bond document obtained by Eyewitness News. Those dates are subject to change.

By executing the lease, 38 Studios has fulfilled a precondition for the R.I. Economic Development Corporation to close on a $75 million taxpayer-guaranteed bond transaction to fund the company's relocation from Maynard, Mass., and the development of one of its two game candidates, Project Copernicus.

"Located in the heart of the capital city and surrounded by our universities and strong arts community, I am confident that 38 Studios will serve as a touchstone for growth in the interactive entertainment and digital media industry," Gov. Donald Carcieri said in a statement.

The loan is expected to close by early next month. The two rating agencies vetting the deal, Moody's and Standard & Poor's, had not completed their work yet as of Wednesday, an EDC spokesman said.

Blue Cross sold One Empire Plaza, along with its former office at 15 LaSalle Square, to Boston-based Berkeley Investments in April 2008 for $27 million. In addition to office space rated Class B+, the building includes ground-floor retail stores, a 35-space parking garage, and three elevators. It was built in 1981.

38 Studios said it chose the spot because it is a central location near a mix of office buildings, restaurants, entertainment venues and university buildings. Berkeley Investments has renovated the building since Blue Cross moved out.

"The new location of 38 Studios will be a significant economic boost to downtown, the city and the state," Daniel Baudouin, executive director of The Providence Foundation, said in a statement.