The transaction, which closed on March 15, was arranged by Grubb & Ellis Co. executive vice president Jack O'Conner, who represented both Mivila and the seller, developer Jan Burman. According to O'Conner, the final purchase price of the building was roughly $5 million. He adds that Mivila has secured an $8-million loan package to cover the purchase price as well as improvements to the building, including roughly $1 million for a new roof.
"Long Island is nothing but growth," Mivila president Ted Laoudis tells GlobeSt.com. "The facility is centrally located and there were people working with us on all aspects [of the transaction]." While Laoudis says the space requires no build out, refrigeration, storage and other equipment are reportedly needed in order to get the facility on its feet.
One sticking point of the sale was the feasibility of reactivating the rail spur used by former occupant Grumman Corp. Officials from New York & Atlantic Railway Co., holder of the exclusive rights to run freight on Long Island Rail Road lines, have reportedly assessed the cost of getting the tracks back in working order. "We're trying to get rail in there," Laoudis says. "The state and the town are helping us." He adds that the rail project should be completed "in six months to a year."
When he revealed the project in December, Governor George Pataki said Mivila's first foray onto New York soil would bring 220 jobs to the area. And because the property, located at 4062 Grumman Blvd., falls within the Riverhead Empire Zone, it is eligible for property tax abatements, reduced utility rates, wage tax credits and tax-free building improvements. In addition, Mivila is eligible to apply for an Empire State Development capital grant of up to $300,000.
Known as Plant 6, the property is the largest of the Calverton Enterprise Park facilities and sits on 31 acres. Burman has said that with the Mivila deal completed, all of the major Calverton sites have been either leased or sold. The Calverton properties were assembled by the US Navy in the 1950s and transferred to the town of Riverhead in 1998. Burman bought the assets--18 buildings with 900,000 sf of office and industrial space-- for $17 million last November. The 491-acre sale, brokered by Grubb & Ellis, is one of the largest single real estate transactions in Long island history.
Established in 1970, Mivila is a food service distributor servicing the Northeast. Headquartered in Paterson, New Jersey, Mivila offers a full line of canned goods, dry goods, frozen foods, produce, seafood, dairy products and baking goods. The company's customer base includes restaurants, hotels, distributors, schools and hospitals.
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