Category: Market Info

Retail Giants to Add More Markets Across US in 2018

Amazon and Whole Foods Market announced Tuesday the start
of home delivery service for natural and organic products through Prime Now, launching the service in South Florida and parts of New York.

Prime members can shop for produce, meat, seafood, bakery items and other products from Whole Foods Market at
primenow.com or by using the e-retailer’s Prime Now app.
Some alcohol also is available for delivery.

The service started earlier this year and will expand across the U.S. throughout 2018, the two
retail giants said.

“We’ve been delighted with the customer response to delivery in as little as an hour through
Prime Now, and we’re excited to bring the service to our customers in Fort Lauderdale, Miami,
Palm Beach, Long Island and New York City,” Christina Minardi, Whole Foods’ executive vice
president of operations, said in a statement.

The New York City service will start with lower Manhattan and Brooklyn.

Shoppers can enter their zip codes at primenow.com to see if they’re in the delivery area. The
service is available daily from 8 a.m. to 10 p.m.

Online behemoth Amazon acquired Whole Foods last summer for nearly $14 billion.

Nearly two decades ago, Lakeland, FL-based Publix Super Markets started a home delivery
service that ended within two years. Since then, several other chains have launched similar
ventures.

But Barry Wolfe, a retail specialist and senior managing director at Marcus & Millichap in Fort
Lauderdale, said the service has its challenges.

While many shoppers are comfortable ordering books, clothing or electronics online, they’re
not as willing to buy fresh fruit and vegetables sight unseen, Wolfe said.

“I’m not someone who believes grocery delivery will be an enormous trend,” he said. “I don’t
see it taking over the marketplace.”

Still, Wolfe adds, “You can’t minimize anything Amazon does.”

New industrial project takes shape in Hicksville *

After a lengthy approvals process, a project to create a new industrial building in Hicksville is set to begin.

The plan for a 43,000-square-foot industrial building on about 3 acres of mostly vacant land at 400 West John St. first ground-up development for Jericho-based Sanders Equities.

Originally pitched for residential condominiums by the site’s previous owner, who had already gotten approvals fro Town of Oyster Bay for the project, Sanders Equities purchased the property in 2015. The company owns more th million square feet of mostly industrial space on Long Island, about 100,000 square feet of which is on West John near its new development site.

Sanders decided an industrial use made the most sense for the property, especially in light of the area’s tight indu market, where a dearth of supply and increasing demand have combined to create a need for new modern facilitie
“We’re creating something that addresses today’s operational needs and for the future,” said Jordan Sanders, a co principal and son of its founder Art Sanders.

The new building will have ceiling heights of at least 30 feet and no columns for maximum flexibility. It was design the company’s in-house architecture team of Ted Pupilla and Nick Ernst.

Al Centrella Jr., Sanders’ in-house leasing director, is currently in discussions with prospective tenants. He said the building can be leased by a single tenant or multiple tenants. Asking rent for 400 West John will range between $ $19 per square foot. The company plans to start construction on the building this summer and expects it to be fin around the end of the year.

The Sanders project will be the second new industrial building in the neighborhood. Just a couple of blocks away, Rutherford, N.J.-based Lincoln Equities Group is planning to build a 195,000-square-foot warehouse and distributio facility on a 9-acre site on Duffy Ave. The Lincoln Equities project is scheduled to be completed in the second qua 2019.

There should be strong demand for both new projects, as Long Island’s industrial market continues to be ithehott commercial real estate sector. The industrial vacancy rate in the first quarter of the year dropped to 3.1 percent o Island and an even lower 2.9 percent in Nassau County, according to a report from Colliers International. The ave rental rate for Long Island industrial properties in Q1 was $11.36 per square foot, a whopping 9.2 percent rise fro previous quarter, while the average rent in Nassau hit $12.01 per square foot.
Art Sanders founded Sanders Equities in 1999 after serving as president of Spiegel Associates for 16 years. His so Jordan, a former analyst for institutional and private equity real estate investors, joined the firm in 2012. Since the company has focused on updating its portfolio, which is about 80 percent industrial and 20 percent retail and abou percent occupied.

“We’re trying to make a shift into properties that are more current,” Art Sanders said.
Sanders also owns the 5,000-square-foot shopping center next to the Hicksville project site, which it may eventua redevelop as well. The company is also working on another new ground-up industrial building of about 125,000 sq feet in central Nassau that still needs to get through the approvals process.

“We have confidence in this market,” Jordan Sanders said.

His dad echoed that sentiment and said the Hicksville project represents a new beginning.

“It’s important for us to keep growing,” says Art Sanders. “We’re taking a very long-term view.”

Jason Miller,

Premier Commercial Real Estate

Jeff Schwartzberg,

Premier Commercial Real Estate

Old Bethpage, NY According to Kalmon Dolgin and Neil Dolgin, co-presidents of Kalmon Dolgin Affiliates, Inc. (KDA), the firm has arranged the sale of a one-story, 42,500 s/f property at 195 Sweet Hollow Rd., for $3.5 million.

Linda Wong of KDA, along with Jason Miller and Jeff Schwartzberg of Premier Commercial Real Estate, represented the buyer Long Guang Lin, while William Becker of Racanelli, Becker and Associates LLC represented the seller, 195 Sweet Hollow Road Corp.

The buyer will use the warehouse space for its kitchen cabinet and marble business, New Star Kitchen. The property was formerly used by Advance Relocation Molloy Brothers Moving and Storage, which has relocated its operations to Farmingdale.

The one-story property has a 5,000 s/f office, and high ceilings – 25,000 s/f of the space offers 16-ft. ceilings while 17,000 s/f feature 24-ft.ceilings. Located between Winding Rd. and Hub Dr., 195 Sweet Hollow Rd. offers access to the Seaford Oyster Bay Expressway, Long Island Expressway, Rte. 110, and Old Bethpage Rd.

Founded in 1904, Kalmon Dolgin Affiliates offers over a century’s worth of experience in the management, sale, leasing and marketing of commercial and industrial property throughout the New York Metropolitan region. In addition to its staff of 35 brokers, Kalmon Dolgin Affiliates, through its subsidiary, KND Management Co., Inc., operates a portfolio of over six million square feet of industrial, office, medical and retail space in ten states. Their highly-trained professionals offer a practical, street-wise approach to real estate, supported by the latest in real estate management and research technology and four generations of unparalleled expertise.

The Suffolk County Industrial Development Agency voted to provide economic incentives to Plainview-based
Renaissance Downtowns’ redevelopment project that officials say would foster revitalization, spurring economic
development in Huntington Station.

Renaissance Downtowns is working in partnership with RXR on this $5.12 million project. It would include in its first phase the construction of a 22,599 square-foot mixed-use building featuring 16 rental apartments and 6,200 square feet of retail and commercial space on the ground floor. The project is expected to be completed in July of 2017.

The Northridge Project, as its called, would be situated at New York Avenue and Northridge Street, a busy location
that is also a five-minute walk from a Long Island Railroad station. The property has sat vacant and not generated
any tax revenues in decades, officials said.

“Revitalization projects that include mixed-use space, like what is planned for Huntington Station, are the types of
projects we hope to support as they provide a great boost to the economy and community,” said Tony Catapano,
Suffolk IDA’s executive director, in a statement.

“The economic opportunities a project like this can provide a community are significant, especially when you
consider its proximity to mass transit and main thoroughfares,” he added.

The community and the developers signed a community benefit agreement, stating that 25 percent of contracting
jobs would go to Huntington Station contractors. In addition, 25 percent of all construction and permanent jobs are
targeted for Huntington Station residents. And a fund would be established to help support community-based
programs across Huntington Station.

In working with the IDA, Renaissance Downtowns would receive a sales tax exemption of $200,908 and mortgage
recording tax exemption of $39,041. The developer would receive a property tax abatement of $660,082 over a period of 15 years, but would be paying more than $1.4 million in property taxes over that same period. The
developer said it “would not proceed with the project” without financial assistance by the IDA.

“IDA assistance helps Renaissance Downtown at Huntington Station make this a viable project, while still offering
the residents of Huntington Station a significant benefits package,” said Kelly Morris, Suffolk IDA deputy executive
director, in a statement.

“The project will prove to be another example of how lowering costs for businesses in the short term leads to
increased economic activity and a more expansive tax base in the long term,” she added.

The project is expected to generate 16 full-time jobs, with average salaries between $42,500 and $47,500.

Sleepy’s issued a WARN notice that it will lay off 28 employees at its Hicksville headquarters. (Credit: Howard Schnapp)
Sleepy’s, the Long Island mattress retailer that was bought by Mattress Firm, which was in turn gobbled up by a South African company, says in a regulatory notice that it will lay off 28 employees at its Hicksville headquarters.
The layoffs, in the company’s finance and accounting unit, could begin as early as Dec. 31 and extend to April, according to the WARN notice posted Friday.

The reductions come in the aftermath of Sleepy’s being purchased in February by its competitor Mattress Firm Holding Corp. in Houston. And last month, South African retail giant Steinhoff announced it was buying Mattress Firm.

“The reduction in jobs . . . is a result of Mattress Firm’s efforts to realize efficiencies by reducing duplicative jobs created through Mattress Firm’s acquisition of Sleepy’s,” said Jody Putnam, Mattress Firm’s talent and integration officer.
Putnam said the company would offer employees severance packages and jobplacement services. At the time of the purchase by Mattress Firm, Sleepy’s, which was a family-owned business with roots dating to 1931, had about 3,400
employees overall, including those at its more than 1,000 stores and other facilities. Its website showed about 40 stores on Long Island.

Under New York’s Worker Adjustment and Retraining Notification Act, companies with at least 50 full-time employees must give them at least a 90-day notice of a mass layoff or closing.

Plainview-based Rechler Equity Partners, the largest owner of commercial real estate on Long Island, reported a
mid-year occupancy rate of 99.6 percent for its portfolio of more than 5 million square feet.

The occupancy rate is the highest in Rechler Equity’s 55-year history, according to a company statement.
The firm’s principals credit the high occupancy on one of the tightest industrial real estate markets in recent
memory, spurred on by companies migrating from high-priced properties in Brooklyn and Queens.

Rechler Equity has capitalized on the low supply and high demand for industrial space by selling three of its
properties this year, including a 140,000 square-foot warehouse and distribution facility at 1516 Motor Parkway in
Hauppauge; a 65,000 square-foot manufacturing and distribution facility at 42 Windsor Place in Central Islip; and a
30,000 square-foot manufacturing facility at 125 Ricefield Lane in Hauppauge.

“The demand for industrial real estate on Long Island is unlike anything we’ve experienced before,” Mitchell Rechler,
Rechler Equity managing partner, said in the statement. “Our occupancy rates have never been higher, leases are
being filled more than a year in advance and properties no longer fitting within our portfolio profile are selling
quickly. These benchmarks directly affect the confidence businesses have to invest and establish themselves on Long Island.”

In its ongoing efforts to bring its largest office building up to full occupancy, Sterling Equities is seeking tax breaksfrom the Nassau County Industrial Development Agency.

Sterling, the owner of the 200,000squarefoot building at 999 Stewart Ave., has been investing in upgrades at the
property recently, including transforming an industrial elevator into a passenger lift. But to help with further
renovations and attract a tenant to the building’s 27,000squarefeet of vacant space, the company wants
assistance from the IDA that would freeze taxes for prospective businesses that may want to relocate there.

A public hearing on the application for “exemptions or partial exemptions from real property taxes” is set for next
week. Philip Wachtler, a principal in Farmingdale based Wachtler Knopf Equities, the building’s property manager, said IDA benefits would help attract tenants and serve to level the playing field with properties in Suffolk County, where taxes can be $3 or $4 lower per square foot.

“If it gives us any kind of leg up it’s important,” Wachtler said. “It might give us a competitive edge over Suffolk.
We’re trying to bring jobs to Nassau County.”
WKE just signed Weight Watchers, its newest tenant for the Bethpage building, which is taking 22,343 square feet.

Ownership spent nearly $1 million on building out the new space, which had been vacant for quite a while. Weight
Watchers is relocating from space it had been subleasing from Cablevision at 300 Jericho Quadrangle in Jericho and
is now being transformed into the new headquarters for Publishers Clearing House.

“They (Weight Watchers) were free agents and they could have gone anywhere,” Wachtler said. “But we put
together a great deal for them.”

Great Neckbased Sterling, whose principals also own a majority stake in the New York Mets, own eight commercial
properties on Long Island, of which 999 Stewart Ave. is the largest. The Bethpage office building sits on 15.29 acres
and has ample parking – able to accommodate 1,285 cars – which translates into more than six spots for every
1,000 square feet of office space. Wachtler said the abundance of parking is an important feature for companies
with a lot of employees. Another of its amenities is its fullservice, firstfloor cafeteria.

Existing tenants at 999 Stewart Ave., also known as Sterling Corporate Center, include the Internal Revenue
Service, PSEG Long Island and Assigned Risk Solutions, among others.

While large blocks of office space are in relatively low supply in Nassau, demand isn’t that strong, another reason
why Wachtler says a break on taxes and continued property improvements should help bring tenants and their
employees to the Bethpage complex.

“We’ve put a lot of money into the building and we plan to put in a lot more,” he said.

The public hearing will be held by the Nassau IDA at 10 a.m. on Sept. 7 at the Oyster Bay Community Center at 59
Church St. in Oyster Bay.

The Huntington Station facility of a Chicago-based company that makes shelf-stable and frozen beverage products and cocktail mixes will close in December, according to a state regulatory filing.

The WARN filing, posted on the state Labor Department’s website on Friday, says that 48 employees of Bevolution Group will be affected. The company declined to comment Monday evening.

The notice attributes the closing to a “consolidation of production processes.”

Layoffs are scheduled for Nov. 18, followed by the plant’s closing on Dec. 30, the notice says.

Under the state Worker Adjustment and Retraining Notification Act, companies with at least 50 full-time employees in New York must give workers a 90-day notice of a mass layoff or closing.

The Nassau County Legislature approved a funding mechanism Monday that allows the $1 billion Garvies Point
mixed-use development to contribute a smaller portion of payments in lieu of taxes to the county.
According to the plan, the county will receive $21.3 million from the Glen Cove project over 40 years, which comes
to about 6.4 percent of its PILOT payments, instead of the typical 7.7 percent the county would normally get.
Under the financing plan, bonds issued by the City of Glen Cove’s Industrial Development Agency will be repaid with
future incremental tax revenues generated from the project. The city is not liable for repayment of the bonds.
Garvies Point will bring 555 rental residences, 555 for-sale residences, about 75,000 square feet of retail and office
space and 22 acres of waterfront esplanades and parks to the 56-acre site along Glen Cove Creek formerly occupied
by heavy industry and junkyards.
The project is expected to generate about $400 million in net tax revenue along with an estimated annual economic
benefit of $50 million to the city, including $24 million a year in local spending by new residents and the creation of
more than 540 permanent jobs, according to a statement by development partner RXR Realty.

“The Nassau County Legislature’s vote is a major boost for the economic vibrancy of the Glen Cove community,”
Scott Rechler, RXR Realty chairman and CEO, said in the statement. “We applaud the Nassau County Legislature for
recognizing the opportunity this project represents for the Glen Cove community and for ultimately choosing to
support our effort to restore the waterfront to productive use.”
The city has already given site-plan approval for the project’s first phase, which includes six buildings of four, five
and six stories on the eastern portion of the property that will contain the rental apartments and about 25,000
square feet of retail.
But the start of the project is awaiting the outcome of court challenges by a group of local residents and the Village
of Sea Cliff, which are contesting the size and scope of the redevelopment. The suits maintain that Glen Cove is breaking a written agreement city officials signed in 2000 that limited building heights to 65 feet and the total size
of the development to 700,000 square feet.