MRA to participate in PILOT program

Metropolitan Realty Associates LLC has agreed to a PILOT program with the town of Hempstead Industrial Development Agency that will cut taxes for 10 years on the developer's newly acquired building, 711 Stewart Ave., making it more economically attractive than ever for tenants to lease space. The building recently was renamed Garden City Square. MRA, which has developed a reputation for resuscitating distressed properties, bought the 335,000 s/f building in May for $15 million and soon thereafter renamed the property, which it plans to redevelop for mixed uses that will include office, medical and retail space. The building is adjacent to the Roosevelt Field Mall. The PILOT, or payment-in-lieu-of taxes program, will cut taxes at the building to about $2.91 per s/f-well below competitive buildings in Nassau County-and keep them there for the next three years, making the now-troubled property more economically attractive to prospective tenants. Taxes on the building, which is only 22% leased, are now $6.80 per s/f. After the third year of the program taxes would step up annually over seven years until they return to current levels. The program also provides for sale-tax abatement on renovations to the building The Hempstead IDA granted the PILOT program on June 23 and the agreement was signed on July 29, 2010. "Public-private partnerships, such as this PILOT program, enable us to quickly revive buildings such as Garden City Square and bring new jobs to the community," said Joseph A. Farkas, president of MRA. "The Hempstead IDA's decision to provide tax benefits to this project is indicative of their proactive approach in creating and maintaining jobs for the town of Hempstead and Nassau County. Fred Parola, executive director of the IDA, noting that the property has had difficulty holding onto tenants, said, "Joe Farkas has a record of making excellent use of properties that are weak. We were excited about his presence in this important project." A CB Richard Ellis team that includes Richard Karson, Robert Seidenberg, David Zelinski and Daniel Brandel, all of the firm's Woodbury, L.I. office, is marketing space in Garden City Square on behalf of MRA. MRA has been adept at using PILOT programs to jump-start difficult real estate projects. Its efforts include the Business and Research Center in Garden City, now home to Lifetime Brands and Nassau Community College, where over 300 new jobs were created, and the Sunrise Business Center in Great River, where two formerly half-vacant buildings are now leased and a newly constructed building is well on its way to full occupancy and more than 1,000 new jobs have been created and maintained. About Metropolitan Realty Associates Established in 2001, Jericho, N.Y.-based Metropolitan Realty Associates LLC is a national real estate investment and development firm, owning more than 1,000,000 square feet of office space on Long Island. Metropolitan Realty Associates owns the Business and Research Center at Garden City, in Garden City, NY, the Sunrise Business Center in Great River, N.Y., Garden City Square (711 Stewart Avenue) in Garden City, N.Y. and the Jericho Atrium in Jericho, N.Y. It also has important investments in development projects in New York City and many other properties across the country. For more information about Metropolitan Realty Associates visit www.metropolitanra.com.