A project to transform an East Setauket building into a support facility for offshore wind development is getting help from the Town of Brookhaven Industrial Development Agency. 

The Brookhaven IDA is providing economic incentives to Sunrise Wind LLC for its $37.8 million project to redevelop a vacant 59,525-square-foot building on 4.5 acres at 22 Research Way. The facility will house operations and maintenance for Orsted North America Inc. and Eversource Investment LLC, joint-venture partners and offshore wind developers.  

When complete, Sunrise Wind will provide 924 megawatts of offshore wind energy to the state, enough to power nearly 600,000 homes. The East Setauket facility will also be used to help support the joint venture’s broader portfolio of wind farms in the Northeast including South Fork Wind and Revolution Wind. 

The developers anticipate employing 65 workers at the facility within two years of its expected completion in 2024, according to an IDA statement. 

“We’re extremely pleased that Sunrise Wind is locating its operations facility in the Town of Brookhaven, playing a key role in the town’s clean energy leadership,” Brookhaven IDA Chairman Fred Braun said in the statement. “This project will bring new investment to the town and many good-paying jobs. We are proud to work with Ørsted and Eversource on their Sunrise Wind project and look forward to seeing this new operations and maintenance facility provide critical support for the regional development of offshore wind.” 

Article: https://libn.com/2023/01/04/sunrise-wind-gets-ida-assist-for-37-8m-redevelopment-project/

A new Chick-fil-A restaurant is proposed for a former car dealership property in Levittown. 

Frontstead Land LLC has applied to the Town of Hempstead to remove restrictions on the 2.48-acre parcel at 3859 Hempstead Turnpike to allow for construction of the new restaurant. 

The applicant is seeking the town’s approval to demolish an 11,298-square-foot building and a 1,342-square-foot on the property on the northwest corner of Hempstead Turnpike and Berger Avenue. Frontstead Land wants to build a 5,226-square-foot Chick-fil-A restaurant with a double-lane drive-thru and parking for 109 vehicles. 

The Levittown property had been the long-time home of a Honda City auto dealership. In 2018, Honda City purchased 3 acres from Zorn’s of Bethpage at 4333 Hempstead Turnpike in Bethpage, where it has since built a new dealership complex.  

The proposed Levittown restaurant is the latest in Chick-fil-A’s ongoing Long Island expansion. Earlier this month, the chain opened its eighth Long Island location, a 5,000-square-foot restaurant at 200 E. Jericho Turnpike in Huntington Station. 

Article: https://libn.com/2022/12/14/chick-fil-a-to-replace-vacant-auto-dealership-in-levittown/

Huntington Commons’ first grocery store in 26 years will open this weekend at the shopping center, which is undergoing a multimillion-dollar revamp to help turn around a high vacancy rate.

The ShopRite supermarket will open Sunday, according to Wakefern Food Corp., a retailer-owned cooperative based in Keasbey, New Jersey, that owns the ShopRite registered trademark.

The new store is part of an ongoing $31.2 million redevelopment of the property, which has included relocating an existing Marshalls, which has been in the shopping center since 1981, to be beside ShopRite.

Located on New York Avenue north of the Huntington LIRR station, the center, formerly called the Big H, has been contending with a high vacancy rate for years, but the owner hopes a revamp with new building facades, upgraded landscaping, a repaved parking lot and a new supermarket will attract more tenants and shoppers.

ShopRite is taking 63% of the 102,949-square-foot space that Kmart vacated in 2019, while Marshalls relocated in October to a 27,357-square-foot space, similar to its former size, beside the supermarket.

The grocery store is owned and operated by Seth Greenfield and his family, who have six of the 16 ShopRites on Long Island, a Wakefern representative said Thursday.

The new ShopRite will employ about 250 people, the representative said.

Wakefern supplies groceries and support to more than 275 independently owned ShopRite stores in six East Coast states.

Health and wellness tenants coming

Built in 1962, Huntington Commons is a 207,000-square-foot shopping center that is owned by Urban Edge Properties, a Manhattan-based real estate investment trust.

The shopping center’s tenants include Old Navy, Petco and Burger King.  Home Depot owns its building in the shopping center instead of leasing from Urban Edge.

Supermarkets that anchor shopping centers tend to drive foot traffic to smaller tenants on the properties, but Huntington Commons hasn’t had a grocery store since a Pathmark closed there in 1996.

Urban Edge expects its renovation of the shopping center will draw a better mix of tenants and help improve foot traffic.

Huntington Commons was 77.9% leased as of Sept. 30, compared to 43.8% three years earlier, according to Urban Edge’s earnings reports.

Leases recently were signed for three new tenants, CycleBar, an indoor cycling studio; Golftec, which offers golf lessons and club fittings; and iStretchPlus, a stretching studio.  The three tenants will occupy a total of 7,299 square feet and move into space vacated by Outback Steakhouse in 2018.

“These new, health and wellness uses share a target demographic with ShopRite and will benefit from synergies and the increased convenience of adjacency for multiple weekly visits,” Scott Auster, senior vice president and head of leasing at Urban Edge, said in a statement.   “And, with a brand-new Marshalls store in place, Huntington Commons will truly combine the best of essential and discretionary retail alongside in-demand services such as fitness and beauty.”

Phenix Salons also is planning to start construction of its space in the shopping center in early 2023, Urban Edge said.

The renovation work at the shopping center started in spring 2021 and is expected to be done in 2023, Auster said.

Article: https://www.newsday.com/beta/business/shoprite-urban-edge-properties-huntington-commons-nckooaow

Three new tenants are replacing the long-vacant Outback Steakhouse space at the re-imagined Huntington Commons retail complex, as the center’s new ShopRite supermarket opens this weekend. 

The former 7,300-square-foot restaurant space will soon be the home of CycleBar, GOLFTEC and iStretchPlus, creating a new health-and-fitness destination at the New York Avenue center owned by Urban Edge Properties. 

The property once known as the Big H shopping center has been undergoing a $31 million renovation and a refresh of its tenant roster. A 65,000-square-foot ShopRite, slated to open Sunday, Dec. 11, will be the new grocery anchor for Huntington Commons, taking up most of the 102,000 square feet vacated by Kmart when it closed in 2019. 

CycleBar, an indoor cycling studio, leased 2,474 square feet; GOLFTEC, which offers golf lessons and instruction, leased 2,819 square feet; and iStretchPlus, a stretching and fitness concept, leased 2,002 square feet. 

“This location offers terrific one-stop shopping opportunities so that our members can come in for a ride, go to Petco for pet supplies, drop by Old Navy or Marshall’s for some clothes shopping, head over to Home Depot for some needed supplies and end up at Tommy Taco’s to bring dinner home,” Robert Hand, owner of CycleBar, said in a written statement. “What I am most looking forward to when we open is building a family style atmosphere in the studio with our members.” 

Chad Covak, vice president of Real Estate at GOLFTEC, said the “the visibility and access from New York Avenue and the renewed energy within the center” drew the company to set up shop at Huntington Commons. 

James Haas, owner of iStretchPlus, said the remodeled retail center is “geographically perfect” to serve residents of Huntington and surrounding communities. 

“We are very excited to be part of this makeover and pleased that our services will be a nice complement to the services offered by our soon-to-be neighbors GOLFTEC and Cyclebar,” Haas said. “Together we will deliver that sporty, athletic and wellness feel that has been missing from the center.” 

The adjacent 3,938-square-foot space last occupied by Sterling Bank at the Huntington Commons pad site is still available. 

Dan Glazer of RIPCO Real Estate represented CycleBar, Faronn Roboff of Royal Properties represented GOLFTEC and iStretchPlus was self-represented, while Glazer and his RIPCO colleagues Tom Rettaliata and James Valenti represented Urban Edge in the lease transactions. 

“Urban Edge’s revamping of the former Big H shopping center, now called Huntington Commons, is an impressive transformation and a continued improvement to the area,” Glazer said. “These new tenants are sure to attract more visitors to the revitalized complex.” 

Article: https://libn.com/2022/12/09/new-tenants-replacing-outback-at-huntington-commons/

A new Fairfield Inn by Marriott will soon be developed in Farmingdale. 

The new four-story, 84-room hotel replaces four blighted homes on 1.41 acres on Route 109 across from the southern end of Republic Airport. 

Krishiv LLC is the developer of the hotel and is awaiting building permits before starting construction, which it hopes to begin next spring. The $19 million project is expected to be completed in Q1 2025.  

The new hotel required a change of zone from the Town of Babylon from G-Light Industrial to M-H Planned Motel-Hotel District, as well as variances and special use permit from the town’s Zoning Board of Appeals and Planning Board.  

Attorney Keith Brown, partner with Brown Altman & DiLeo, worked with Bohler Engineering and Atlantic Traffic & Design to secure zoning approvals for the hotel project. 

“We are very pleased to have been a part of such a great project to meet the demand for more hotels for business travelers and families traveling to Long Island,” Brown said in a written statement. “We want to thank the entire Babylon Town Board and especially Supervisor Rich Schaffer, as well as the town Planning Department for their support and cooperation in order to bring this beautiful new Fairfield Inn into a reality.” 

The Melville-Farmingdale Chamber of Commerce and Discover Long Island issued letters of support for the proposed redevelopment of the property. 

“The town is thrilled be part of a project that will transform a dilapidated property into a world-class hotel,” Babylon Supervisor Rich Schaffer said in the statement. “We thank Mr. Brown for bringing us plans we could easily get behind.” 

Amenities featured at the new hotel will include a business center, breakfast cafe, outdoor patio area and fitness center.  

“We are very excited to bring this project to the Town of Babylon and the Farmingdale community,” Pete Patel, one of the partners in the project, said in the statement. “We very much appreciate the professional manner in which the town officials processed our application.” 

Article: https://libn.com/2022/12/06/new-marriott-branded-hotel-approved-for-farmingdale/

A Melville maker of ground power units for aircraft has won a nearly half-billion dollar, 10-year contract from the Defense Department after a lengthy pursuit.

The company, Aviation Ground Equipment Corp., plans to add 45 to 60 new hires over the next 18 months, more than doubling its current 38-person head count.

“Everything is going to get bigger,” Barry Spilka, Aviation Ground Equipment’s president, said of the $482 million contract. “I’ve been working on this specific program — just this — for five years.”

He called the contract the biggest he’s seen in Aviation Ground Equipment’s sector.

“I’ve never seen a contract in my industry a quarter of this size,” Spilka said. “It’s pretty rare that I see something that’s half a billion dollars … unless you’re one of the top 100 Defense Department contractors.”

The indefinite delivery and indefinite quantity contract issued by Robins Air Force Base in Georgia runs until mid-November 2032. The contract was announced by the Defense Department last month.

Indefinite delivery, indefinite quantity contracts are commonly awarded by the federal government to defense contractors. They allow the government to designate funding year by year while providing flexibility if needs change.

Eight bidders competed for the contract, the Defense Department said.

Aviation Ground Equipment, founded in 1984, will deliver a variety of ground power units and universal load banks, which are used to test and maintain the power units.

In flight, an aircraft’s engines provide electrical power for its systems, but when it is parked, a ground power unit can provide electricity for maintenance, technical checks and systems to allow passengers to board and disembark.

The ground power units can be used for the F-35, B-21, E-3, KC-46, and F-22 aircraft as well as future systems, the company said.

About 20 years ago, Aviation Ground Equipment opened a manufacturing facility in Franklin, Ohio, to accommodate larger projects, becoming a prime contractor eligible to win major manufacturing deals with the Defense Department, aircraft manufacturers and major corporate customers, the company said. The Ohio site complements the facility in Melville.

Aviation Ground Equipment, founded as an airport service and maintenance company, gradually expanded to manufacture its own equipment for government contracts, including branches of the U.S. military, the company said.

Article: https://www.newsday.com/business/defense-department-aviation-ground-equipment-contract-ugk7pn9r

Local officials will join developers at a groundbreaking ceremony next week for a new industrial project in Islandia. 

Phoenix-based Creation and partner J.P. Morgan Asset Management will begin construction of a 178,000-square-foot warehouse/distribution facility on 12 acres on Old Nichols Road. The property has 1,000 feet of frontage on the service road of the Long Island Expressway. 

The groundbreaking ceremony is scheduled for 11:30 a.m. on Thursday, Dec. 8 at 981 Old Nichols Road. 

Dubbed the Old Nichols Commerce Center, the project site has been rezoned from residential to commercial to accommodate the new development. The project is expected to be substantially completed by the end of next year, according to a company statement. 

The Islandia development is the second Long Island industrial project for Creation. The company is building a 103,500-square-foot warehouse on 8.18 acres at 125 Baylis Road in Melville. 

Creation demolished a 100,000-square-foot office building at the Melville site and is replacing it with the new warehouse and distribution center, featuring 32-foot ceilings, 20 dock doors and two drive-in bays. The new building will have 96,900 square feet of warehouse space and 6,600 square feet of office space and is pre-leased to Keurig Dr. Pepper. 

Founded by David Sellers and Bob Agahi in 2018, Creation has a portfolio that includes $4.65 billion of ground-up developments in Arizona, Texas, California, Colorado, Tennessee, New York and New Jersey. The company also has nearly $1.5 billion in mixed-use office, retail and multifamily projects in the pipeline. 

Article: https://libn.com/2022/11/30/groundbreaking-for-islandia-industrial-project/

EW Howell Construction Group has completed its work on a new assisted living facility in Kings Park. 

St. Johnland Assisted Living, located at 393 Sunken Meadow Road, is a two-story, 68,000-square-foot facility with 80 residential units and 100 beds. 

The new assisted living facility was built adjacent to the existing St. Johnland Nursing Center on the 100-acre complex owned by the nonprofit organization. Designed by KDA Architects, it has four wings of residential units, rather than the long, linear design found in many care facilities, enabling easier mobility for residents and nursing staff, according to a company statement. 

Amenities at the facility include a large lobby with library space, a full-service kitchen and dining room with access to exterior courtyards, and resident laundry rooms. The second-floor features areas for art and cultural activities, and a wellness suite which hosts physical therapy and fitness. Three-quarters of the residents will be Medicaid eligible, which opens the facility to people of all financial backgrounds. 

“In addition to a multitude of amenities and activities, residents have the added benefit of the facility’s proximity to the organization’s nursing center and other services,” EW Howell’s Giuseppe Iuliucci, who served as project manager on the Kings Park facility, said in the statement. 

In recent years, Plainview-based EW Howell has served as general contractor on several senior housing facilities, including Whisper Woods at Smithtown and Orchard Estate of Woodbury for Benchmark Senior Living, The Residences at Plainview for Capitol Seniors Housing, and communities for Sunrise Senior Living in Huntington and Summit, N.J. 

Article: https://libn.com/2022/11/21/work-completed-on-kings-park-assisted-living-facility/

The Rockefeller Group is nearing completion of its new 172,622-square-foot distribution center in Bay Shore. 

Scheduled for opening in the spring, the new building at 55 Paradise Lane includes 36-foot-clear ceiling heights, 47.6-foot by 54-foot column spacing, 40 dock doors for trailers and two overhead doors and the property has parking for 270 vehicles. Rockefeller Group also has local approvals to build 7,317 square feet of office mezzanine space and 21,280 square feet of storage mezzanine space at 55 Paradise Lane if demand calls for the additional space. 

Rockefeller Group purchased the 55 Paradise Lane development site for $32 million in 2020 and bought two adjacent warehouses totaling 437,998 square feet at 145 and 158 Candlewood Road for $94.5 million from an affiliate of Rubie’s Costume Company last year. 

Leslie Lanne, Doug Omstrom and Max Omstrom of JLL are marketing space at the Rockefeller Group Logistics Park, which also includes fully leased warehousing and distribution centers at 145 and 158 Candlewood Road. 

“We are excited to be nearing completion on 55 Paradise Lane and bringing more than 170,000 square feet of new industrial space to Long Island, where vacancies are at record low numbers,” Meg Brod, senior managing director of Rockefeller Group, said in a company statement. “55 Paradise is part of our active pipeline of industrial projects across the country and Long Island is an important market for us. Working closely with JLL, we are seeing interest from a number of users, including Fortune 500 companies, third-party logistics firms and local businesses looking to expand.” 

Demand for industrial product on Long Island continued to see sustained growth in the third quarter, which has helped drive leasing velocity to 2.5 million square feet year-to-date, more than all of 2021, according to JLL’s 3Q 2022 Northeast Industrial Report. 

“The new Bay Shore industrial park perfectly meets a long list of criteria for a successful distribution hub, including its close proximity to major population centers and a strong workforce, a location with a low impact on residential neighborhoods, easy access to an array of transportation options and spacious modern facilities,” Lanne said in the statement. “The soon-to-be-completed distribution center at 55 Paradise Lane will allow for the quick, convenient, safe fulfillment of orders, meeting the growing demand for ever-faster local deliveries.” 

Aurora Contractors of Ronkonkoma is serving as the 55 Paradise Lane project’s general contractor, while KSS Architects of Manhattan is the architect and R&M of Huntington is the civil engineer.

Article: https://libn.com/2022/11/14/new-distribution-complex-nears-completion-in-bay-shore/

The Northeast market for industrial property has had its hottest year ever, even as concerns about economic conditions have grown.

Industrial tenants and owners have occupied a net amount of 44.5 million square feet in the region so far this year, the most in the market’s history, according to a new report from brokerage firm JLL.

And demand has continued to grow.

As of the third quarter, industrial owners and tenants were searching for 98.4 million square feet of facilities across the Northeast, a 17.6 percent rise over the past three years.

The demand drove under-construction stock to 70 million square feet, the highest level in the region’s history, with 54.5 million still available to pre-lease.

JLL’s Rob Kossar and Leslie Lanne recently brokered the largest industrial lease in New York City this year, as Amazon inked a deal for 568,000 square feet at Innovo’s massive Bronx logistics center.

The boom, however, may prove the peak for the industry, which was juiced by record e-commerce growth during the pandemic.

“The market has begun to see a normalization in leasing activity closer to their pre-pandemic levels,” the report reads. “The uncertainty across the economy has made occupiers more cost-conscious.”

Buyers of industrial space are also fewer, thanks to rising borrowing costs.

“Although there is significant dry powder across the asset class, the macroeconomic landscape and uncertainty has resulted in a slimmer buyer pool than years prior,” the report reads.

Still, the Northeast industrial market will remain favorable to landlords for years to come, JLL predicts, with leasing velocity still above pre-pandemic levels and vacancy rates at all-time lows.

The occupancy rate of warehouse, distribution and manufacturing facilities in New York, New Jersey, Pennsylvania and Delaware has averaged 98 percent since the pandemic began.

“Given the hyper-low vacancy environment across the Northeast,” the report reads, “we expect region-wide vacancy to remain below 4 percent, barring a deep economic depression.”

Article: https://therealdeal.com/2022/11/04/northeast-industrial-market-still-breaking-records-but-may-have-peaked/