Binghamton University finalized a $5.5 million purchase of an abandoned office building along Vestal Parkway.

The building sits on three parcels of land located near UClub — 4736 and 4740 Vestal Parkway East in Vestal, New York and 4 Vestal Avenue in Binghamton, totaling about 3.59 acres. The land was acquired from Columbian Financial Group, a collection of local life insurance companies. Columbian Financial Group established its headquarters on the Vestal Parkway in 1965, with more space constructed on the property in 1980.

“Binghamton University’s purchase of the Columbia Financial Group building on the Vestal Parkway represents an exciting opportunity for the University to expand its presence and to design a space that supports our strategic priorities,” a University spokesperson wrote to Pipe Dream.

The COVID-19 pandemic put financial strain on Columbian Financial Group. In 2021, the company’s acquisition deal with Constellations Insurance Holdings, a Canadian investment firm, collapsed, resulting in Columbian Mutual Life laying off a quarter of its staff.

It is unclear when the physical location shut down. Last year, the company reported having 231 employees on site.

“Columbian Life’s precarious situation was partially driven by mispricing of policies,” Alan Shortell, administrator for The Life and Health Insurance Company Guaranty Corporation of New York, told AM Best, a credit rating agency. “There were also apparently some moves being made in terms of selling subsidiaries, which were initiated and, apparently, never materialized as a potential solution to their financial distress.”

In August 2024, the New York Supreme Court assigned Adrienne A. Harris, then-superintendent of the state’s Department of Financial Services, as the company’s rehabilitator. The state’s financial services department controlled the company’s assets and created a rehabilitation plan to protect policyholders and creditors.

Earlier that year, SUNY Chancellor John B. King Jr. recommended that the SUNY Board of Trustees allow the University to purchase the property for no more than $5.55 million. He indicated the space was needed due to increased student admissions and staff hires at the University.

“SUNY Binghamton is expanding its faculty and staff to meet the goals and needs in the areas of enrollment, instruction, research, internships, etc.,” King wrote in the resolution. “SUNY Binghamton is working to add over 60 new full-time faculty, primarily in fundable research programs, and 45 staff in areas ranging from students with disabilities and mental health counselors to academic advisors.”

Settled at $5.5 million, the purchase deal was presented to Melissa A. Pisapia, an attorney with the New York Liquidation Bureau who worked under Harris, last October. The state Supreme Court confirmed the proposed sale was legal that December.

The University now plans to transform the property into office space for faculty and staff.

“The new facility will be utilized to free up and create additional space for student-centric offices and services on campus, thereby creating a space on the main Vestal campus that directly supports student success,” a University spokesperson wrote to Pipe Dream. “President Anne D’Alleva has asked that both a Steering Committee and a Planning Committee be established to help guide this important initiative. These groups will work collaboratively to develop recommendations for the building’s future use and to engage in the design process.”