Southdown Coffee expanding to Patchogue

Southdown Coffee will soon be opening a new location in Patchogue. 

The growing Long Island coffee chain leased a 2,126-square-foot retail space in the New Village mixed-use complex at 1 Village Green Way. 

The new Patchogue store will be Southdown Coffee’s first on the South Shore. The company, which specializes in premium coffee and handmade food, has other Long Island locations in Huntington, Glen Cove, Oyster Bay, Northport and Port Jefferson. 

Completed in 2014 by Tritec Real Estate, the New Village mixed-use complex has hosted public outdoor concerts, farmers’ markets and festivals and is regarded as one of the centerpieces in the revitalization of Patchogue’s downtown. 

Maria Valanzano and Steven D’Orazio of Colliers International represented Southdown Coffee, as well as landlord Tritec, in the Patchogue lease transaction. 

“New Village helped provide an anchor to redevelop Patchogue and create a new sense of place for the village,” Valanzano said in a company statement. “The transformative project provided the energy that a community like Patchogue needs to keep moving forward. We were very pleased to find such an excellent location for Southdown Coffee’s first establishment on the South Shore.” 

Chris Kelly, vice president of marketing at Tritec said bringing in a tenant like Southdown Coffee will provide both New Village tenants and community members with a place to congregate.  

“Individuals will be able to grab a coffee, meet a friend for breakfast or catch up on some work while being footsteps away from all the town has to offer,” Kelly said in the statement. 

Article: https://libn.com/2022/08/25/southdown-coffee-expanding-to-patchogue/

CDCLI relocating its headquarters to Melville

The Community Development Corporation of Long Island is relocating its headquarters to Melville. 

CDCLI leased 23,500 square feet of office space at 1660 Walt Whitman Road. The organization will be moving from its long-time space at 2100 Middle Country Road in Centereach to its new Melville digs in March 2023. 

CDCLI also plans to have smaller branch locations in both Nassau and Suffolk counties. 

“As CDCLI continues to expand its team, customer base and impact; transitioning its headquarters to Melville further supports that growth,” Gwen O’Shea, CDCLI president and CEO, said in a written statement. “Melville provides greater accessibility for the vast customer base, team, board of directors and community partners. With a team of 100-plus individuals, CDCLI is looking forward to being an active member of Melville’s community and economic development.” 

Founded in 1969, CDCLI is a nonprofit organization that focuses on meeting the growing demand for affordable housing on Long Island. 

Ralph Benzakein of Cresa Long Island represented CDCLI, while Kyle Crennan and Joe Lopresti of JLL represented landlord Melville Corporate Park LLC in the lease transaction. 

“We worked diligently with the landlord and the JLL team and they were ultimately able to provide us with a package that will help make this CDCLI’s home for many years,” Benzakein said. 

Article: https://libn.com/2022/08/24/cdcli-relocating-its-headquarters-to-melville/

$15M mixed-use project opens in Riverhead

Local officials, business and community leaders joined developers last week to cut the ribbon on a new $15 million mixed-use project in Riverhead. 

Called The Shipyard, the four-story development from Huntington-based G2D Group, brings three studios, 10 one-bedroom and 23 two-bedroom apartments over 880 square feet of commercial space at 331 East Main St. 

Amenities at The Shipyard include a rooftop lounge, a business center and a fitness center. Conveniences for residents feature 24-hour video surveillance, private parking lot, and concierge services that include cleaning and dog walking. Some of the apartments also have balconies with views of the Peconic River. 

Monthly rents at the new Riverhead complex range from $2,500 to $5,800. Though it just opened last week, The Shipyard is already more than 50 percent leased. 

G2D, which has been active in downtown development throughout Long Island, is also planning to build a five-story, 37-unit luxury apartment building on a half-acre site at 205 Osborn Ave. in Riverhead. The property, which had a vacant, 10,000-square-foot medical office building on it, is located a block from the Riverhead Long Island Rail Road station and across the street from the Suffolk County Supreme Court building. 

Both projects are part of the ongoing revitalization of Riverhead’s downtown, which got a boost earlier this year with the award of a $10 million Downtown Revitalization Initiative grant from New York State.

Article: https://libn.com/2022/08/22/15m-mixed-use-project-opens-in-riverhead/

Vitamin maker sells sprawling Ronkonkoma complex

The Bountiful Company, the Long Island-based vitamin and supplements firm formerly known as Nature’s Bounty, has sold its former Ronkonkoma headquarters. 

Rosemont, Ill.-based Venture One Real Estate purchased the 110,770-square-foot building on 9 acres at 2100 Smithtown Ave. 

The price was not disclosed, though real estate sources say the property traded for $16.2 million in the deal that closed earlier this month. 

Built in 1980 for industrial use, the vacant Smithtown Avenue property had been occupied by the vitamin maker for 24 years. The company, which was also formerly known as NBTY, purchased the property at the end of 1997 for $3.9 million, according to public records. 

Nature’s Bounty had converted the building for office use and the new owner is seeking to lease the property to an industrial or office tenant or tenants. The building, located across the street from the west side of MacArthur Airport, has 17-foot ceilings, three exterior dock doors and parking for 350 vehicles. 

Bountiful joins the growing list of Long Island companies shedding office space or seeking to trim their office footprints, as LIBN recently reported. The vitamin firm, which occupies several other Long Island properties, including facilities in Bayport, Bohemia, Holbrook and Ronkonkoma, declined to comment on the sale of its Smithtown Avenue property. 

Nestle Health Science acquired Bountiful’s major brands in a $5.75 billion deal last year, buying its Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride brands. Those brands had sales of $1.87 billion the previous year, according to a report from Reuters. 

The purchase of the Ronkonkoma property is the fourth Long Island acquisition for Venture One in the last nine months. The company acquired an 85,000-square-foot industrial building on 9.7 acres at 2950 Veterans Memorial Highway in Bohemia in Nov. 2021 and a 90,000-square-foot office building on 7.4 acres at 49 Wireless Blvd. in Hauppauge in March. Venture One, which also has a regional office in East Rutherford, N.J., is investing $96 million to redevelop the Bohemia and Hauppauge properties into new warehouse and distribution facilities. 

Two months ago, Venture One purchased a 50,000-square-foot industrial building on 4.48 acres at 889 Waverly Ave. in Holtsville, which is leased to Fulfillment Plus and is not targeted for redevelopment. The company declined to comment on its Ronkonkoma acquisition. 

Paul Leone of CBRE represented the seller in the Smithtown Avenue sales transaction but declined to comment on the deal.

Article: https://libn.com/2022/08/18/vitamin-maker-sells-sprawling-ronkonkoma-complex/

Back-to-meetings spurs demand for flex space

The company conference may survive the age of remote work, after all.

Flex landlords who run short-term conference and events spaces say they’re seeing an increase in demand from companies that have ditched the office but still need a place to gather for occasional get-togethers and corporate events.

“People are booking these meeting rooms and bringing in their entire company, whether it’s once or twice a month,” said Juda Srour, co-founder of the flex landlord Jay Suites. “They gave up their office space and spent that money here.”

Jay Conference, a conference and events space division launched in 2018 by Jay Suites, recently signed a 40,000-square-foot lease near Bryant Park for the company’s fifth and largest location.

The space at Princeton International Properties’ 104 West 40th Street has seven rooms and a main room that can hold 600 people. The location had previously been occupied by Japanese venue-operator TKP’s New York conference center with a private entrance on 39th Street, which made it easier for Srour’s company to take over.

The future of New York’s central business district is still very much up in the air. Office occupancy across the city hit 40 percent in June for the first time since the pandemic, according to Kastle Systems.

Manhattan office leasing totaled 11.6 million square feet in the first half of the year, according to CBRE. That was up 83 percent from a year earlier, but 3 percent below the five-year average.

And those tenants that are leasing space are taking a longer time to do so. A tenant looking to lease 75,000 square feet or more took an average of 19 months to complete a deal — 14.5 percent longer than it took from 2017 to 2019, according to CBRE.

Events-space landlord Convene in July reopened a 20,000-square-foot location near Grand Central Terminal at 101 Park Avenue that had closed during the pandemic and underwent a renovation.

Phoenix Porcelli, Convene’s vice president of sales, said the company is looking to open new locations in its existing markets and expand to new ones after Hudson’s Bay Company and Ares Management took a majority stake in Convene in April at a $500 million valuation. (That figure was flat from Convene’s 2018 Series D funding round.)

Demand is up 133 percent from the same time last year, Porcelli said, and clients are booking space much closer to the date of their events. The average booking window is just shy of 30 days, compared to 67 days pre-pandemic.

“We’re seeing a higher frequency of smaller events booked in a much smaller window,” she said. “There’s still a reticence about booking longer in advance.”

Article: https://therealdeal.com/2022/08/17/back-to-meetings-spurs-demand-for-flex-space/

Lidl opening new Commack store this month

Discount grocery chain Lidl will be opening its new store in Commack at the end of the month. 

Lidl will hold a grand opening celebration at the 30,000-square-foot supermarket in the Mayfair Shopping Center at 210 East Jericho Turnpike on Wednesday, August 31. 

Lidl invested more than $7 million to transform the Commack location formerly occupied by Stein Mart, which closed in 2020 as part of the apparel retailer’s bankruptcy. The new store will employ more than 50 people, according to a company statement. 

The first 100 customers in line before the 7:40 a.m. ribbon cutting on August 31 will receive gift cards ranging from $5 to $100 each. Shoppers can also enter to win a $500 Lidl gift card, sample Lidl’s award-winning assortment and take advantage of special giveaways. 

In addition, from Wednesday, August 31 through Sunday, Sept. 4, Lidl will donate $1 to Long Island Cares for every new myLidl member who signs up and sets Lidl Commack as their home store. 

“On behalf of the Town of Smithtown, I am overjoyed to formally welcome our new neighbor, Lidl, to Commack on Jericho Turnpike,” Town of Smithtown Supervisor Ed Wehrheim said in the statement. “Throughout the pandemic, Lidl has opened over 15 stores on Long Island to serve residents, providing quality, affordable food at low, competitive prices. This latest store is a much needed and promising addition to the community, and I am grateful that Lidl has chosen Smithtown to call home.” 

Article: https://libn.com/2022/08/16/lidl-opening-new-commack-store-this-month/

Bayville mixed-use property sells for $3.9M

A mixed-use property located in the heart of Bayville has traded for $3.9 million. 

22YRC Lo Properties LLC, an entity registered to a Mt. Sinai-based real estate investor, purchased the 9,494-square-foot building on .44 acres at 22 Bayville Ave. 

The fully occupied building has four two-bedroom, two-bath, rental apartments over four commercial spaces. The property also includes four garages behind the building. 

The sale price equates to a 7.37 percent cap rate. 

Tim Petrou and John Pszczola of Blue Shark Realty Group represented the buyer, while John Magnani of DGNY Commercial and Janine Fakiris and Giselle DiMasi of Daniel Gale Sotheby’s International Realty represented seller 22 Bayville Avenue LLC in the sales transaction. 

Article: https://libn.com/2022/08/15/bayville-mixed-use-property-sells-for-3-9m/

Shaving space

Here’s a quiz. What do GEICO, Publishers Clearing House, Dealertrack, Hains Celestial, Allstate, Marchon Eyewear, Equitable Advisors and Newsday have in common?

If you guessed that they are among a growing list of major companies looking to shed a sizeable amount of Long Island office space, you’d be correct.

Ever since the COVID-19 pandemic forced firms to allow employees to work remotely in the spring of 2020, companies have been trying to figure out how to navigate the new hybrid work environment. And though most businesses would rather have workers come into their offices, attracting and retaining employees in this period of high employment has prompted firms to continue to offer the option to work from home.

As a result, companies have been re-thinking their real estate requirements, and more firms are seeking to shrink their office footprints by subleasing or selling some of their existing space.

GEICO is doing both. The insurance giant had a deal to sell its 235,635-square-foot office building on 20 acres in Woodbury to a N.J.-based private equity and development firm last fall, but the sale fell through after the buyer’s plan to redevelop the site into a 24-hour logistics center ran afoul of Town of Oyster Bay covenants.

At the same time, GEICO leased 200,000 square feet at The We’re Group’s office complex at 1 Huntington Quadrangle in Melville, where it planned to relocate in the fourth quarter of 2023. However, the Chevy Chase, Md.-based company, a wholly owned subsidiary of Berkshire Hathaway, has recently put the Melville space out for sublease and Cushman & Wakefield is once again marketing GEICO’s Woodbury office property for sale.

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Shaving space

Here’s a quiz. What do GEICO, Publishers Clearing House, Dealertrack, Hains Celestial, Allstate, Marchon Eyewear, Equitable Advisors and Newsday have in common?

If you guessed that they are among a growing list of major companies looking to shed a sizeable amount of Long Island office space, you’d be correct.

Ever since the COVID-19 pandemic forced firms to allow employees to work remotely in the spring of 2020, companies have been trying to figure out how to navigate the new hybrid work environment. And though most businesses would rather have workers come into their offices, attracting and retaining employees in this period of high employment has prompted firms to continue to offer the option to work from home.

As a result, companies have been re-thinking their real estate requirements, and more firms are seeking to shrink their office footprints by subleasing or selling some of their existing space.

GEICO is doing both. The insurance giant had a deal to sell its 235,635-square-foot office building on 20 acres in Woodbury to a N.J.-based private equity and development firm last fall, but the sale fell through after the buyer’s plan to redevelop the site into a 24-hour logistics center ran afoul of Town of Oyster Bay covenants.

At the same time, GEICO leased 200,000 square feet at The We’re Group’s office complex at 1 Huntington Quadrangle in Melville, where it planned to relocate in the fourth quarter of 2023. However, the Chevy Chase, Md.-based company, a wholly owned subsidiary of Berkshire Hathaway, has recently put the Melville space out for sublease and Cushman & Wakefield is once again marketing GEICO’s Woodbury office property for sale.

The sale and sublease represented a major downsizing of the company’s Long Island office space, as many of its employees continue to work remotely. GEICO did not respond to requests for comment on its real estate plans.

Though brokers acknowledge the increased availability of sublease space, they point out that the overall Long Island office market is holding its own, buoyed by high employment and a finite supply of Class-A space.

“Excluding sublets, Long Island office market fundamentals remain relatively stable,” says Adam Rochlin, principal of The Rochlin Organization brokerage firm. “While many national office tenant employees may still be working from home, the rent for office space is still being paid, and leases can run for many years. Landlords are not feeling the pain of vacant space, and they’re not desperate.”

The overall vacancy rate for Long Island office space was 13 percent in the second quarter, with available sublease space accounting for 20 percent of all office vacancies, according to a report from Cushman & Wakefield. Supply of office space here has outpaced demand for the last 11 quarters, and there was negative absorption of 566,000 square feet in the first half of 2022.

Rochlin said while sublet space is abundant, it’s difficult to conclude a deal with.

“We often refer to the national sublet market as ‘shadow space,’ and it can be riddled with landmines at every turn, including the possibility of a master tenant default, that could terminate sublet tenancy, and unanswered complaints that can make tenancy uninhabitable. Tenants tend to stay away from such liability unless the discount is significant.”

Brian Lee, a principal and executive managing director of Newmark, says there has been a flight to quality for Long Island office tenants and noted that Class-A office properties have much higher occupancy rates, while most of the available sublease space is in less desirable buildings.

“I think the main punishment here is going to be in Class-B buildings, the commodity space that doesn’t have the amenities, that’s old, that’s tired,” Lee said. “That’s where you’re going to see the problems. When you look at the buildings that are being sublet, you’re not looking at the A buildings, you’re looking at the B buildings.”

In fact, there was about 600,000 square feet leased at Long Island Class-A office buildings in the second quarter, while just 212,000 square feet was leased at Class-B buildings, according to the C&W report.

Overall asking rents for Long Island office space rose to $32.06 in the second quarter, and David Pennetta, executive managing director for Cushman & Wakefield Long Island, said the strength of office rents is a sign of landlord confidence. It also reflects the area’s finite supply of desirable office space.

“The last speculative office building over 100,000 square feet developed in Nassau County was constructed in 2005 and in Suffolk County it was 2009, so we don’t have any new supply to absorb,” Pennetta said. “Also, the medical sector has consumed a steady supply of office space, further shoring up its resilience. With the amazing strength of the industrial sector, we have even seen some major office buildings being converted to distribution warehouses.”

Still, with softening demand and increased supply of sublease space, the Long Island office market remains in a state of flux. For clients of CBRE broker Martin Lomazow, a tenant-rep specialist for large office transactions, that represents opportunity.

“We are having a very good time representing our clients looking for space, because there’s ample space to choose from. That makes this a very good time to be in the market as a tenant,” Lomazow said. “Plus, if you have a strong enough tenant, you can often convert sublease space to direct leases.”

And though some stats shine a positive light on the office market, Lomazow believes the systemic office-occupancy issue will become more apparent over time.

“At least half of larger companies are going on record that they’re going to be reducing their footprints and that’s nationally,” Lomazow said. “You also have the possibility of a looming recession, and when companies are confronted with a decision whether to give up space or employees are going to be far more inclined to give up space, since it’s proven that they can exist with a reduced footprint.”

Many brokers say the work-from-home trend is not universal and seems to be most prevalent with certain types of businesses.

“Process-driven work, which doesn’t require creativity and collaboration, is ideal for working from home. You’re typically on your computer processing information, whether it’s processing orders, claims, or other functions,” Lee says. “Bigger corporations have more of that process-oriented work. When people need to do collaborative work, like lawyers, accountants, and other creative professionals, that is more of an environment where people want to work together and need to be together, and you can’t just do it on Zoom all the time.”

Pennetta agreed with that assessment.

“Certain industries are more compatible with working from home, but there is no one-size-fits-all solution as each company will look different depending on its objectives,” Pennetta said. “I personally think having younger professionals working unguided and autonomously by themselves could lead to cultural issues and result in the younger workforce changing jobs more often.”

Meanwhile, out of all of Long Island’s commercial real estate sectors, the office market remains the one with the most question marks and uncertainty moving forward. And it’s major events like COVID that can move the needle one way or the other.

“Before 9/11, everyone was looking to create corporate campuses. Then 9/11 happened and everyone wanted to disperse and, 10 years later, they all moved back to the city,” Lee said. “To me it’s a fascinating time to see what the future of work is going to be, what people are doing. I think the office is far from dead. I think whenever the pendulum goes one way, everyone says it’s never coming back. Of course it will, but to what extent remains to be seen.”

Article: https://libn.com/2022/08/11/shaving-space/

Mobile fitness firm expands with $3.5M Melville deal

GYMGUYZ, a growing mobile fitness company has expanded in Melville after purchasing an office property for $3.5 million. 

The business has relocated from leased space in Plainview to the 18,000-square-foot building on .92 acres at 600 Broadhollow Road the company acquired a few months ago. 

GYMGUYZ has so far invested another $400,000 in renovations to the property, where it occupies the second floor and basement. Bank of America leases about 8,000 square feet, mostly on the Melville building’s first floor. 

The company’s founder is Josh York, a former personal fitness trainer who grew up in New Hyde Park. After graduating from Long Island University in Brookville, York took a marketing job, but he soon decided to return to the personal training business. 

York started the mobile training company out of his parent’s dining room in 2008, spending his life savings of about $15,000 to buy a Ford E250 van that he filled with exercise equipment. Five years later, York began franchising the concept and it has been flexing its muscle ever since. 

Today, GYMGUYZ, which stands for “Get You Motivated Goals Uniquely Yours Zero (excuses),” has sold more than 150 franchises that serves nearly 1,000 cities across the U.S., Canada and the U.K. York says the company has 40 more franchise in the pipeline for 2022 and it expects to add between 75 and 100 more franchise locations next year. 

“So many people told me it was a stupid business model and that I should just open up a gym,” York told LIBN. “All those detractors never stopped my drive and determination.”

The new building will feature a training facility to train the company’s franchise partners and corporate team members, as well as a content studio with a set that recreates a client’s home for training. It took York 15 years to have windows in his office, after staring at basement walls all that time.  

“Now we have an actual world headquarters, from which we’ll sell tons of franchises,” he said. 

The cost of a GYMGUYZ franchise ranges from $66,000 to $131,000, depending on the size of the territory. For their investment, franchisees get a fully-appointed van packed with 365 pieces of workout equipment, including free weights, trampolines, battle ropes and other gear trainers bring to each client’s location. In addition, franchisees receive proprietary management software, local phone number, website and several days of training. 

GYMGUYZ charges $85 to $105 per mobile workout for individuals and also offers group training. 

“Due to demand within the last two years, we’ve expanded our services heavily into the business-to-business sector, adding corporations, senior living facilities and condo communities to our client list,” York said. 

The company has made lists of fastest-growing franchises and earned other accolades in the last several years. 

“But the best reward is when you get a call from a mother of an autistic child who was functioning at a low level and now because of our workouts is functioning at a higher level,” York said. “We’re in the business of helping people. It’s great to make a living, but it’s much better to make a difference.” 

Desmond Cassidy of DGNY Commercial represented the buyer, while Chuck Tabone and Dan Oliver of Newmark represented seller 600 Route 110 LLC in the Melville sales transaction.

Article: https://libn.com/2022/08/11/mobile-fitness-firm-expands-with-3-5m-melville-deal/

Work starts on $50M mixed-use project in Roslyn

Construction has begun on a $50 million mixed-use project in Roslyn. 

Developer JK Equities was able to break ground on the transit-oriented project at 281-301 Warner Ave. after securing a $35.8 million construction loan provided by Provident Bank. 

Designed by Mojo Stumer Architects, the development will bring 54 rental apartments over 6,600 square feet of retail space to the property located a short walk to the Roslyn Long Island Rail Road station that was formerly occupied by a blighted strip of vacant retail stores. 

The Roslyn project received economic incentives from the Nassau County Industrial Development Agency and was recognized as a Top Mixed-Use Project by Long Island Business News’ 2022 Real Estate, Architecture & Engineering Awards. 

“This is yet another significant milestone for this development since our acquisition in 2019, we are ecstatic for construction to begin,” Jerry Karlik, principal of JKE, said in a company statement. “After gaining approval of our plans, and working with our team, we are happy that this project, part of the Industrial Development Agency program and Brownfield Cleanup Program, will be delivering a new, walkable and transit friendly development for this neighborhood that I’ve lived in and cherished for many years.” 

The 105,000-square-foot project includes parking for 130 vehicles and as many as 30 electric-vehicle charging spots. A portion of the one- and two-bedroom apartments will be designated as workforce housing and leased at reduced rents.  

Mark Stumer, founding principal of Mojo Stumer, said the new building’s architecture has a very distinct character and form. 

“With a dynamic material palette of wood, black brick, and concrete-look porcelain, the façade design visually breaks the building down to smaller components as it wraps the substantial grade changes across the property,” Mark Stumer, founding principal of Mojo Stumer, said in the statement. “The result is a creatively designed, and site-responsive piece of architecture which will be an exciting new landmark at this southern entry point to the Village of Roslyn.” 

The development is expected to be completed in early 2024. 

Article: https://libn.com/2022/08/09/work-starts-on-50m-mixed-use-project-in-roslyn/

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