SUFFERN, NY-Raymour & Flanigan has acquired the 892,943-square-foot Tri-State Logistics Center at 30 Dunnigan Dr. here, which the regional furniture retailer will renovate into a regional distribution center. Jones Lang LaSalle represented both Raymour & Flanigan and Ascena Retail Group, the property’s seller, which recently announced a headquarters move across the Rockland County border into New Jersey.
The purchase price for 30 Dunnigan was not disclosed. However, an announcement from Gov. Andrew Cuomo and the Empire State Development Corp. last month said the 65-year-old furniture chain would be spending $46 million to acquire and renovate the property, in the process creating 300 new jobs that would result in over $135 million in wages for local employees over the next decade.
“We were able to uncover a number of potential buyers and tenants but felt that this deal was the best fit for our client and the property,” says JLL managing director Robert C. Kossar, who represented Ascena, in a release. “Raymour & Flanigan clearly saw the benefits of this facility. In this market, there are very few options in this size range and with easy access to the New York State Thruway; the location is perfect for Tri-State area distribution.”
Approximately 200,000 square feet at 30 Dunnigan is leased by Par Pharmaceuticals, which will retain its lease, according to the release from Cuomo’s office. The remaining 693,000 square feet will be used exclusively by Raymour & Flannigan as a warehouse and distribution center; it includes space for future expansion.
Parent company of Dress Barn and Charming Shoppes, Ascena decided to put 30 Dunnigan up for sale in 2010 and move its warehouse operations to a facility it owns in Ohio. The company received $32.4 million in Grow New Jersey tax credits to move its headquarters and 400 employees six miles away to the Garden State, according to the New Jersey Economic Development Authority. It purchased the 129,000-square-foot 933 MacArthur Blvd. in Mahwah, NJ, formerly the headquarters of Footstar Inc., for $14.6 million in late April, according to data provided by JLL.
Along with Kossar, JLL’s managing director David Knee, vice chairman Robert Martin and VPs Blake Chroman and Chris Hile handled the 30 Dunnigan disposition on behalf of Ascena. Joel Friedman, VP of Team Resources SBWE, represented Raymour & Flanigan.
Founded in 1947 as the Raymour Furniture Store in upstate Syracuse, Raymour & Flanigan is headquartered in Liverpool, NY. It recently opened new locations in Long Island City, Queens, and in Whitehall, PA.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
