Melville, NY The Suffolk County Industrial Development Agency (IDA) has preliminarily approved a transaction to assist 536 Broadhollow Realty LLC to construct a 77,000 s/f building that will be used as a warehouse and office space for one to two tenants. With the IDA’s support, 536 Broadhollow Realty will invest more than $11.53 million to construct a new facility on 5.8 acres, located at 1700 Walt Whitman Rd.
“This project holds significant promise on multiple fronts,” said Kelly Murphy, acting executive director of the Suffolk IDA. “By replacing a vacant building with a modern warehouse and office facility, we address a pressing demand-supply gap in the market. Moreover, this initiative promises a substantial increase in tax revenue for local jurisdictions and the creation of numerous job opportunities, offering tangible benefits to the community.”
536 Broadhollow Realty LLC is a real estate holding company established on Long Island in 2010. The company’s principals possess more than 40 years of experience in the ownership and development of residential and commercial real estate. The company currently possesses two adjacent properties at the project site: 536 Broadhollow Rd. and 1700 Walt Whitman Rd.
In December 2023, the applicant demolished a 60,000 s/f warehouse located on the site’s 5.8 acres. The proposed project entails the construction of a 77,000 s/f warehouse and office space at the 1700 Walt Whitman Rd. aiming to meet the demand for small to medium-sized warehouse facilities in the Melville and Western Suffolk region, strategically located with easy access to major highways.
“The Suffolk IDA has been an exceptional collaborator in previous endeavors, and we are delighted to engage with them once more on another promising project,” said Marc Beige, manager of 536 Broadhollow Realty LLC. “As a company rooted in Long Island, we are committed to contributing to the growth and diversification of economic development and real estate opportunities within our region. We thank the IDA for their partnership, which will allow us to continue with these goals.”
Upon completion, this project is poised to become a significant tax generator for the community. Even with the IDA’s assistance, this project will generate more than $100,000 in additional annual taxes beginning in the first year of the agreement. Following the completion of the project, it is expected to generate more than $206,000 in annual taxes–of which $139,000 would be allocated to the local school district. This represents an increase of more than $142,000 in total annual taxes, a nearly 225 percent increase when compared to the taxes generated previously. Annually, operational revenues are projected to generate an indirect impact of approximately $450,000 and an induced impact of more than $860,000 per year. The extra output results from engaging in business transactions with local merchants across different sectors in Long Island, consequently aiding in the expansion of the regional economy.
The 27 new employees to be created over the first two years of this transaction will have average annual salaries of more than $48,000 resulting in an annual payroll of over $1.3 million. During the course of the project, the applicant plans on hiring local Long Island contractors and businesses throughout construction. Utilizing the services of numerous Long Island businesses including contractors, electricians, landscaping, plumbing and more–is all aligned with the IDA’s Long Island First Policy.
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