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W.P. Carey Sells 111,000-SF LI Property

NEW YORK CITY-The former BJ's Wholesale Club was under contract to a residential developer but a zoning change was turned down and the deal fell through. Now, the property will become an R&D facility for Icon Laboratories.

By Glen Thompson | Updated on December 23, 2002

NEW YORK CITY-Locally based real estate investment banking firm W.P. Carey & Co. LLC, which has been on a buying binge through 2002, has sold off a 111,000-sf Long Island property. An investment partnership led by Hauppauge-based developer the Marcus Organization spent $7.4 million for the 10.5-acre Farmingdale asset, which will be built out and expanded by roughly 4,000 sf and used as an R&D facility for clinical trial firm Icon Laboratories.

Edward Fitzsimons II, a senior managing director at Insignia/ESG’s Long Island office, and Daniel Oliver, an associate, brokered on behalf of the seller. Cushman & Wakefield senior director Ted Stratigos and associate director Jason Forte assisted the buyers, which also include Bellco Health principal David Schuss, in arranging the purchase of 123 Smith St. (Bellco is not involved in the deal.)

According to W.P. Carey vice president Frank Ruimy, who worked on the disposition, the property, formerly a BJ’s Wholesale Club, was under contract to a residential developer but a zoning-change application was denied. Initial plans to redevelop the asset as a multifamily complex were scrapped and an assisted-living concept for the property was also abandoned, Ruimy tells GlobeSt.com. “We couldn’t get the zoning,” Ruimy says. “The town didn’t approve. So, we went back to the market and found another buyer. The situation was even more attractive.”

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