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Newmark Grubb Knight Frank (NGKF) has arranged the simultaneous sale and purchase of two high-end, flex industrial buildings in Hauppauge, Long Island as part of a 1031 tax-free exchange.
Telecom company Reliance Communications LLC purchased the 69,863-square-foot 555 Wireless Blvd. for $8 million, which NGKF Executive Managing Director Jack O’Connor marketed on behalf of its owner, private investor John Shalam. Reliance fully occupied the building and decided to acquire the property rather than move, as it had planned.
In order to take advantage of a 1031 tax-free exchange, Reliance put up for sale the 118,042-square-foot 350 Wireless Blvd., which it owned but had not yet occupied. Pharmaceutical manufacturer A&Z Pharmaceutical Inc. then purchased the building for $12.6M to expand its operations, which are already based in Hauppauge.
“Both properties are trophy high-end flex buildings within Hauppauge Industrial Park,” says NGKF Managing Director Daniel Gazzola, who represented A&Z with NGKF Executive Vice President and Managing Director Chuck Tabone. 350 Wireless Blvd. also has expansion land, which he says was attractive to the growing pharmaceutical company. A&Z secured nearly $1.7 million in tax concessions from the Suffolk County Industrial Development Agency after agreeing to expand by 30 employees over the next two years.
Both 555 Wireless Blvd. and 350 Wireless Blvd. are located in Hauppauge Industrial Park, where many pharmaceutical companies have been moving into and expanding, Mr. Gazzola says. “It’s the best place on Long Island if you’re looking for high-end industrial space.”
“We are very excited to expand our business,” says Emma Li, A&Z’s President and CEO. “This new building will allow for our immediate and future growth and will bring new jobs to Long Island.”
NGKF was the exclusive broker for both transactions. NGKF’s O’Connor, Managing Director Scott Berfas, Associate Director Susan Fallon and Associate Robert Polito also represented Reliance in its disposition of 350 Wireless Boulevard.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.