Long Island Commercial Realty

Metropolitan Realty Associates Sells Garden City, NY Complex for $39.25 ...

Jericho, NY (PRWEB) August 01, 2011

Six years after buying an architecturally distinctive, vacant pharmaceutical plant in Garden City and spending millions of dollars converting it into a modern mixed-use property, Jericho, N.Y.-based Metropolitan Realty Associates and its New York City-based equity partner, Angelo Gordon & Co., have sold the two-building complex for $39,250,000 in what is the largest commercial sale on Long Island this year. The sellers reaped a big return on their investment.

The buyers are real estate investor David Werner and privately owned Carlton Associates Inc., both of New York City.

MRA and Angelo, Gordon acquired the 188,500-square-foot, two-building complex at 1000 Stewart Ave. and 500 Endo Blvd., in Garden City in 2005 for $7.4 million from Bristol Myers Squibb. After an extensive renovation the partnership leased it to such long-term tenants as Lifetime Brands Inc., a publicly traded manufacturer of kitchenware, and Nassau Community College.

The sale, which works out to $208 per square foot, is the result of an auction conducted last fall by Eastdil Secured, whose marketing team included Adam Spies, Adam Etra, Josh King and Michelle Mahl. The buyers represented themselves.

MRA and Angelo, Gordon acquired the 188,500-square-foot, two-building complex at 1000 Stewart Ave. and 500 Endo Blvd., in Garden City in 2005 for $7.4 million from Bristol Myers Squibb. After an extensive renovation the partnership leased it to such long-term tenants as Lifetime Brands Inc., a publicly traded manufacturer of kitchenware, and Nassau Community College.

“This sale concludes the hugely successful redevelopment of one of Long Islands most famous and architecturally significant commercial properties and provides us with an opportunity to return capital to our investors,” said Joseph Farkas, president of MRA. “This sale further proves the recovery of the real estate capital markets is underway and building momentum.

MRA and Angelo, Gordon bought the complex, designed by renowned 1960’s architect Paul Rudolph, in August 2005. Originally constructed as the headquarters of Endo Pharmaceuticals, the building was completed in 1964. MRA implemented a complete, award-winning renovation of the building that added windows, new building systems, parking and landscaping and was completed in January 2007.

How to Buy Commercial Real Estate « eboden Brand

How to Buy Commercial Real Estate

The first question to ask is ‘what for’? Are you buying commercial real estate to use in your business? Will you be an owner/occupier? Or are you buying as an investor?

While your answer will separate the buyers into different camps, the advice to both is pretty much the same. Proceed with caution. Be as sure as you can be about the chances of the occupiers doing well. Rely on expert opinion.

Owner occupier

Again we can differentiate between a newbie and an experienced operator. If you are seeking to buy commercial real estate to house your brand new business, you need to be sure you don’t buy too big, expand too quickly and pay too much. Mind you that applies to almost everyone in business.

But if you already have a business and wish to relocate or even expand, again be aware of the economic times and don’t over-extend yourself and your business.

Investor

Buying a commercial property worth a great deal of money can be a risky venture. What if you can’t find a tenant or tenants? Of course if the property is already occupied with strong leases then you are on far more solid ground. But buying the property requires detailed and informative research with, if necessary, the help of experts.

Your expert team

The local chamber of commerce, your lawyer, accountant and even the state’s economic advisers are all capable of helping you make the right decision. Some of the advice will be free, some will cost you. But if it helps you make the right decision then it will be time and money well spent. Rely on those who are experts in the areas you are not.

Finance

It’s the same deal, well almost, for someone buying a one bedroom apartment. You have to get the finances right. Foreclosure applies equally to commercial real estate as it does to residential properties. This is just one area where your accountant is essential but knowing your banker and getting good advice from your lending authority is likewise invaluable. One of the main causes of the sub-prime mortgage meltdown was greed on behalf of certain lenders. Borrow wisely from reputable sources.

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