PLAINVIEW, NY – Rechler Equity Partners, the largest owner of commercial properties in Long Island, recorded robust leasing activity throughout its six million-square-foot portfolio during the first half of 2013. The ownership completed 30 transactions totaling 581,504 square feet during the first six months, putting them on pace to surpass the one million-square-foot leasing mark for the fifth consecutive year. Healthcare and related services companies dominated the leasing activity, accounting for a large percentage of all transactions signed by tenants. Indicative of this trend was one of the largest office lease transaction completed in Suffolk County in the first half of the year, a 49,000-square-foot commitment by Catholic Health Services (CHS) at 110 Bi County Boulevardin Farmingdale, NY. Gus Nuzzolese of Colliers International LI, Inc. represented Catholic Health Services in the transaction.
In addition to the lease negotiations with CHS, Rechler Equity Partners worked with the Town of Babylon Industrial Development Agency to arrange a strong economic incentives package, which includes a 15-year tax abatement package for the health care services system, helps bring hundreds of jobs to the area and provides the local economy with a major boost. CHS will consolidate a number of its locations throughout Suffolk County and expand its operations within a portion of the 150,000 -square-foot facility.
“The CHS lease, as well as other major commitments by healthcare and related services companies during the first half of 2013 represents the rapid growth of this sector in Long Island,” said Ted Trias of Rechler Equity Partners, who, along with colleague Harry Stavro, represented the ownership in negotiating the transactions. “Moreover, these tenants are signing long-term leases, a clear indication of a genuine confidence in the long-term strength of this entire region.”
Another major lease signed by a healthcare or related services company during the first half of the year was a nearly 40,000-square-foot deal by Contract Pharmaceutical Corp. (CPC). A 40-year old, family- owned company that develops, manufactures and packages premium pharmaceuticals, over-the-counter drugs and dietary supplements, CPC inked a long-term lease transaction at 250 Kennedy Drive in Hauppauge, NY to house its growing business operation. David Rotter of Metro Realty represented CPC.
A long-term commitment by AlphaMed Bottles Inc. at 360 Oser Avenue also speaks directly to the trend of medical related companies expanding their presence on Long Island. A supplier of award-winning custom plastic containers for pharmaceutical and healthcare companies, AlphaMed leased 23,000 square feet of space at the property located in the heart of Hauppauge, NY which was represented by Ralph Perna of Newmark Grubb Knight Frank.
“In addition to a number of tenants in the healthcare and related services industries taking space throughout our portfolio, we also saw a number of major renewals during the first half of the year,” continued Mr. Trias. “This demonstrates a desire for companies to remain and grown in properties owned and managed by a hands-on, Class A owner and is also another indicator of firms taking advantage of an improving overall economy.”
The largest renewal signed during the first half of the year was a 97,481-square-foot lease by ELM Global Logistics, a third-party logistics partner known for providing inventory control to the most complex of logistics operations, at 2002 Orville Drive North in Bohemia, NY.Rich Cohen of Ashlind Properties represented ELM Global in direct negotiations with Rechler Equity Partners.
In addition to ELM, Publishers Clearing House (PCH) was another lease that topped the 40,000-square-foot mark. The Long Island-based, multi-channel, direct-marketing company that sells merchandise, magazine subscriptions and operates prize-based websites inked a 42,065-square-foot lease at 265 Spagnoli Road in Melville, NY. Brian Lee and Dan Oliver of Newmark Grubb Knight Frank represented PCH in the long-term lease transaction.