HOLTSVILLE, NY-Publicly-traded REIT Piedmont Office Realty Trust has closed the sale of 5000 Corporate Court in Holtsville, NY to an institutional investor for $39.25 million, the company confirmed on Thursday. Jones Lang LaSalle’s managing director Joe Garibaldi, who represented the owner, tells GlobeSt.com that he cannot disclose the investor due to confidentiality agreements, but Real Capital Analytics lists the buyer as Newton, MA-based Government Properties Income Trust, a REIT that focuses on federal and state government assets.
Garibaldi, along with JLL's New York Capital Markets team, managing director Peter Nicoletti, vice president Tom Walsh and executive vice president and head of the firm’s Long Island office, Ray Ruiz, represented the owner. Piedmont's Wil Stone, senior vice president of capital markets also represented the owner on the transaction.
The building was designed in 2000 to meet the needs of the US General Service Administration. The 37-acre site is primarily leased to three GSA tenants, which Garibaldi says has generated a “great deal of interest” from government REITs and private entities.
“It was initially developed for a GSA requirement, so it meets all GSA specs,” Garibaldi says. Asking rents here start at $19 per gross square foot, with 3% annual increases, he added. “It is also located very close to the IRS’ main facility in Holtsville. It has large floorplates and a ton of parking, which caters to a lot of GSA requirements.”
The building is currently 82% occupied and has an additional 48,000 square feet available. Tenants include the Department of Internal Revenue Services-Compliance, Department of Internal Revenue Services-Appeals and the Bureau of Customs and Immigration Services. It is in close proximity to exit 62 of the Long Island Expressway, Sunrise Highway, Nicols Road and Veterans Memorial Highway.
GOV also recently acquired 305 East 46th Street, a 17-story building that is 100% leased to the United Nations, for $114 million from Extell Development Company in Manhattan.
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