Syosset-based Blumenfeld Development Group has closed on its purchase of a 140,000-square-foot industrial
building in Hauppauge for $12.6 million.
The building at 1516 Motor Parkway was sold by Rechler Equity Partners and is the first of three properties that no longer fit within its portfolio profile that are slated to be sold in 2016, according to a company statement.
Blumenfeld, which partnered on the acquisition with a private investor, has entered into a long-term lease with
Entourage Commerce for the entire Motor Parkway warehouse/distribution facility.
The company, a distributor of health and beauty products, is relocating from Queens with the help of tax breaks from the Suffolk County Industrial Development Agency.
The site will receive a $2 million capital improvement as part of the complex’s repositioning. The facility will serve as Entourage’s new headquarters where it will employ more than 300 people.
“Entourage has a dynamic, growing business model which grew out of their current space in the boroughs,” David Blumenfeld, a Blumenfeld Development Group vice president, said in a statement. “We are thrilled to have them in our tenant mix and provide them the footprint to successfully expand their business.”
Blumenfeld also announced its $31.2 million purchase of a three-story mixed-use building at 99-01 Queens Blvd. in Rego Park, Queens.
The 56,916-square-foot building is currently home to Bank of America, New York Sports Club and DeVry College of New York. Blumenfeld will redevelop the remaining vacant space in the building for Mount Sinai Hospital, which has entered into a long-term lease bringing the building to full occupancy. Blumenfeld expects to have all work completed for Mount Sinai by early spring 2017.
As for the Hauppauge sale, Mitchell Rechler, managing partner of Rechler Equity Partners, said the deal
“demonstrates the strength of the sales market for warehouse and distribution facilities” on Long Island.
“This property offered 23-foot ceilings and immediate access to the Long Island Expressway service road, making it a winning combination for any owner/user,” Rechler said in the statement.
The company next plans to market its building at 19 Nicholas Drive in Yaphank. The 232,000 square-foot warehouse and distribution facility is currently leased short-term.