While Metropolitan principal Joe Farkas won't disclose the exact terms of the transaction, the price was "south of $12 million," he tells GlobeSt.com. A source close to the deal confirms the price tag was" between $11.5 million and $12 million."
"This was actually a very fast deal," Farkas says. "We closed with all cash in two months, which is very unique. Now we're in the process of finalizing our debt."
Metropolitan, a 5-month-old Long Island real estate firm and Gordon, a New York City-based money-management group are planning immediate upgrades at the three-building office complex, which comprises two three-story buildings and one two-story building. Built in 1983, the buildings, 700, 750 and 800 Veterans Memorial Hwy., sit on 7.4 wooded acres.
"The first of the work is going to be on the 800 building," Farkas tells GlobeSt.com. We're putting in a new lobby, redoing the floors in the common areas and rebuilding the lower level, which is currently vacant." 'The 40,000-sf 800 building includes roughly 10,000 sf of below-grade space, as does the 76,500-sf 700 building. "That's part of the value add. We have a vacant basement and we're going to construct office space in that lower level. The 700 building has already gone through that process and is already rented. We're going to mimic that design for the 800 building." Farkas says. The 11,000-sf 750 Veterans Memorial Hwy. building is all above grade.
Adam Rochlin of Cushman & Wakefield's Long Island office represented building owner Lighthouse Real Estate Ventures Inc. and will represent the buyer going forward as leasing and management agent. The buyer was self-represented.
C&W originally listed the property last October, but the loss of a major tenant brought the occupancy rate for the complex down to roughly 72%, Rochlin says. So, with "no calls for offers," Rochlin worked to raise the occupancy rate rather than lower the price. The complex is currently 92% occupied. "We got the tenancy back to where it should be and the focus to sell was greater as the occupancy rate went up."
Farkas say that his immediate goal is "to get control of this acquisition, settle it down" before pursuing new deals on Long Island, in New Jersey and New York City. "I'm really focused on New York," he says. "But I know the suburbs and I like the suburbs."
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