LI hospital leasing space at former Sleepy’s HQ
The 450,000-square-foot building on nearly 19 acres at 1000 South Oyster Bay Road was opened in 2009 and housed more than 500 employees of mattress retailer Sleepy’s, which was acquired by Houston-based Mattress Firm for $780 million in 2015. Mattress Firm was then bought by South African retail conglomerate Steinhoff International Holdings in a $3.8 billion deal in 2016.
Mattress Firm still occupies 350,000 square feet of warehouse space at the building, which was built by Bethpage-based Steel Equities and an LLC controlled by David Acker, the former owner of the Sleepy’s chain. But Mattress Firm no longer needs the 100,000-square-foot office portion of the building and has already vacated the 50,000 square feet being leased to South Nassau.
Steel Equities, which had a 50 percent interest in the property, is purchasing Mattress Firm’s 50 percent stake in the property. Terms of the deal were not disclosed.
The Nassau County Industrial Development Agency, which provided economic incentives for the building’s original development, will need to approve the ownership transfer and new lease terms. The item is on the IDA’s agenda for its meeting Tuesday.
South Nassau will be using its new space for back-office operations.