Property of the Month: Lee, Berfas, O'Connor and Tabone of Newmark Knight Frank named exclusive agent for 372,217 s/f

Newmark Knight Frank has been named the exclusive sales representative for one of the Long Island region's best-endowed properties-1 Grumman Rd. West, currently owned by 1 Grumman Road West Holdings, LLC. For the Newmark Knight Frank team driving the transaction-Brian Lee, Scott Berfas, Jack O'Connor and Charles Tabone-the assignment is a perfect one. The property has all the attributes for a real estate investment, development project and location for a corporate office, distribution or light manufacturing operation. A Value-Add Property Opportunity One Grumman Rd. West consists of a 372,217 rentable s/f office/flex/industrial building on 22.42 acres of land in the desirable Bethpage Business Park-a location rich in our nation's aerospace and military history as home of such legendary aircraft as the F-14 Tomcat and the space program's Apollo Lunar module. According to O'Connor, "With almost every lease expiring by 2014, this property offers the flexibility of short-term leases with the added value of in-place rental income upon acquisition to reposition or redevelop the property." He said that its flexible zoning and large footprint further make the property a location for the development of a corporate campus or facility situated on almost 23 acres of prime land in Nassau County where land and development sites are scarce. O'Connor's confidence stems both from direct experience in marketing former Grumman sites (i.e., he was the exclusive agent for the former Grumman site at Calverton), and the history of these properties. Now Cablevision, Goya Foods, Federal Express and Sleepy's maintain their headquarters in former Grumman locations. Just like those locations, 1 Grumman Rd. West is a prime, strategic location. Location, Location, Location Situated in close proximity to Manhattan (a 51-minute drive), mass transportation, airports, and major roadways (i.e., Long Island's north/south, east/west highways), 1 Grumman Rd. West is attracting workforce across diverse sectors of service, distribution and manufacturing. Its corporate neighbors place any relocating business in great company. Along with the aforementioned businesses, the area boasts Northrop Grumman, Grumman Studios, the Long Island Forum for Technology, and Applied Science Foundation for Homeland Security. The Long Island market has been a magnet for organizations with the region's economy generating approximately $122.9 billion and a gross metropolitan product ranking among the nation's top 20 metropolitan areas. With its access to New York City, the Long Island region is home to many healthcare institutions such as the North Shore-Long Island Jewish Health System, St. Francis Hospital and Stony Brook University Hospital; colleges/universities including one of the top 200 world universities, Stony Brook University; and technology centers of excellence. Businesses in industries ranging from aerospace and electronics to biotech, medical imaging, computer technology, financial services, tourism, food processing, agriculture, wineries and commercial fish harvesting are realizing growth and profitability here. Its workforce offer businesses a strong pool of motivated labor. Attracting top talent is further assisted by the region's quality of life-white-sand beaches; over 70 parks, preserves, museums, historic properties and athletic facilities; and golf courses including the "Black" course at Bethpage State Park, host of the USGA 2004 and 2008 US Open. Tax and Financial Incentives Currently, New York State has one of the lowest corporate income tax rates in the Northeast. There are also opportunities for tax and financial incentives. They include: investment tax credits for businesses creating jobs and investing in product property and equipment (i.e., up to 10% of their eligible investment), as well as research and development tax credits (i.e., investments in R&D facilities are eligible for a 9% corporate tax credit), and sales tax exemptions from New York State and local Industrial Development Agencies. A ten-year property tax abatement is available to offset increases in assessments based on property improvements. Additionally, New York State's Excelsior Jobs Program (targeting companies in pharmaceuticals, bio, high, clean and green technology, financial services, manufacturing and agriculture) enables qualifying businesses, to benefit from four new refundable tax credits and claim the incentives over a 10-year period. For investors, 1 Grumman Rd. West provides an immediate cash flow. A formalized leasing program can then be implemented along with potentially extending leases for existing tenants including the largest, Northrop Grumman, E&F Trucking and Nassau County.