"We know from experience that we are building users, but not building owners," says Bill Frost, VP Administration at EDO Corp. This is the second time in five years that EDO is selling real estate in the New York region. In 1996 they sold a property in College Point, NY.
EDO has been marketing the Deer Park property for sale and leaseback themselves since mid-2000, but after failing to complete negotiations with several potential suitors they hired Insignia/ESG to find a buyer and make the deal. The firm intends to lease back approximately half of the space for its own operations--roughly the amount of space it currently occupies--leaving up to 350,000 sf of office and warehouse space available to other users. "Our objectives are to remain as occupants," Frost says. "We are not looking for offers that require us to leave."
No asking price has been established for the property. The 80-acre site, located 3.5 miles off the Long Island Expressway, includes some land that is undeveloped. Insignia/ESG is now conducting pre-market studies to determine how much of the site can be developed and how.
Having a built-in major user as part of the sales package is a very attractive part of the offering to buyers according to Steve Bardsley, managing director in the Insignia/ESG Capital Advisors Group. "EDO's commitment to maintaining a presence creates a financable event," he says. "This is very appealing because EDO Corp. will remain as a 50% tenant, generating immediate cash flow for a buyer."
EDO Corp. supplies highly engineered products for governments and industry worldwide, including advanced electronic, electromechanical and information systems and engineered materials. The company is traded on the New York Stock Exchange and employs 1,500 workers in total. Revenues for 2000 were $207 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
