Iati, who entered the game shooting 51 percent (20 of 39) from deep, made just 1 of 6 shots from long range but logged his 15th straight game with a 3-pointer.
Albany (5-2) scored the game's first five points and led 9-2 following a jumper from Iati. Wagner (1-3) rallied, however, as Jonathon Williams converted a layup with 7:09 left in the first half to give the Seahawks their first lead of the game, 18-17.
But Albany used a 12-3 run over the final 4:30 to enter intermission with a 36-27 advantage.
Williams led Wagner with 26 points on 10 of 11 shooting and has been the Seahawks' leading scorer in each of their last four games.
Florida State's student government has passed a resolution discouraging Seminoles fans from wearing Native American headdresses at games.
The second annual Gavitt Tipoff Games, eight games between members of the Big East and Big Ten to be played Nov. 14-18, will feature Villanova at Purdue in the opener.
Michael Lewis is leaving his assistant coaching job at Butler to take the same position at Nebraska under Tim Miles.