O'Connor of NGKF arranges $8 million 1031 exchange sale for Reliance; Assisted by Gazzola, Tabone, Berfas, Fallon and Polito

Newmark Grubb Knight Frank (NGKF) has arranged the simultaneous sale and purchase of two high-end, flex industrial buildings as part of a 1031 tax-free exchange. Telecom company Reliance Communications LLC purchased the 69,863 s/f 555 Wireless Blvd. for $8 million, which NGKF executive managing director Jack O'Connor marketed on behalf of its owner, private investor John Shalam. Reliance fully occupied the building and decided to acquire the property rather than move, as it had planned. In order to take advantage of a 1031 tax-free exchange, Reliance put up for sale the 118,042 s/f 350 Wireless Blvd., which it owned but had not yet occupied. Pharmaceutical manufacturer A&Z Pharmaceutical Inc. then purchased the building for $12.6 million to expand its operations, which are already based in the hamlet. "Both properties are trophy high-end flex buildings within Hauppauge Industrial Park," said NGKF managing director Daniel Gazzola, who represented A&Z with NGKF executive vice president and managing director Chuck Tabone. 350 Wireless Blvd. also has expansion land, which he says was attractive to the growing pharmaceutical company. A&Z secured nearly $1.7 million in tax concessions from the Suffolk County Industrial Development Agency after agreeing to expand by 30 employees over the next two years. Both 555 Wireless Blvd. and 350 Wireless Blvd. are located in Hauppauge Industrial Park, where many pharmaceutical companies have been moving into and expanding, Gazzola said. "It's the best place on Long Island if you're looking for high-end industrial space." "We are very excited to expand our business," said Emma Li, A&Z's president and CEO. "This new building will allow for our immediate and future growth and will bring new jobs to Long Island." NGKF was the exclusive broker for both transactions. NGKF's O'Connor, managing director Scott Berfas, associate director Susan Fallon and associate Robert Polito also represented Reliance in its disposition of 350 Wireless Blvd.555 Wireless Blvd. - Hauppauge, NY