Ronkonkoma, NY Metropolitan Realty Associates (“MRA”), in partnership with Angelo Gordon, has acquired two industrial properties for $28.3 million. The properties -- located at 195 13th Ave. and 2175 5th Ave. -- are both single-tenant, single-story industrial assets and have a combined square footage of 135,000 s/f.
Both acquisitions are part of MRA’s and Angelo Gordon’s $50 million programmatic venture, which is focused on industrial assets in the Long Island market.
"We believe the recent pullback in capital markets has created an opportunity to deploy equity into top tier, supply-constrained industrial markets at attractive pricing levels," said Joseph Farkas, CEO and founder of MRA. “The Suffolk County industrial market has seen its vacancy rates shrink to below 3% over the past 12 months, with rental rates rising by more than 30% to $16.00-per-s/f-net during the same period. Moreover, the Ronkonkoma submarket has a market vacancy of just 2.5%, boasts exceptional demographics, and is located just 45 minutes from New York City.”
Doug Profenius, vice president at Angelo Gordon, said, “Despite market turbulence, tenant demand for high-quality, functional industrial space remains robust in Suffolk County and we believe 195 13th Ave. and 2175 5th Ave. are both well-positioned to cater to that demand.”
195 13th Ave. is a 102,000 s/f property that is currently 100% occupied by Max Finkelstein Inc., a regional automobile tire supplier owned by US Auto Force. The building has 18.5-foot clear ceiling heights, eight loading docks, and two drive-in doors. It is situated on 8.7 acres of land, of which 2.3 acres are undeveloped raw land that may be used to expand the existing building by 30,000 s/f, as well as provide additional truck and vehicle parking. In addition, the property already has site plan approval for an additional 50,000 s/f industrial building featuring 36-foot clear ceiling heights.
Max Finkelstein Inc. will remain a tenant at the property and continue operations through June 2023. Additional operating revenue is being provided by a new 70,000 s/f roof-top solar system, generating 986,000 kWh for community solar use.
Jose Cruz, Nicholas Stefans, and Tom DiMicelli of JLL represented the seller in the transaction. Joseph Galvano, Esq. of Duval & Stachenfeld represented the buyers. Doug Omstrom, Tom DiMicelli, and Max Omstrom of JLL's Long Island office have been retained to market and lease the property.
2175 5th Ave. is a 33,000 s/f property that is currently 10% occupied by Alken Industries, a complex aerospace parts manufacturer. The building features 18-foot clear ceiling heights, three loading docks, two drive-in doors, and is situated on 1.75 acres. Alken Industries is vacating the property at the end of April 2023.
Ralph Perna of Schacker Realty represented the seller in the transaction and Joseph Galvano, Esq. of Duval & Stachenfeld represented the buyers. Perna has been retained by MRA to market and lease the property.
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