As reported by David Winzelberg of the Long Island Business News
Two Ronkonkoma Industrial Properties Trade for $28.3M
Two industrial properties in Ronkonkoma have sold for $28.3 million.
Metropolitan Realty Associates, in partnership with Angelo, Gordon & Co., purchased the 102,000-square-foot building on 8.7 acres at 195 13th Ave. and the 33,000-square-foot building on 1.75 acres at 2175 5th Ave.
Both acquisitions are part of MRA’s and Angelo Gordon’s $50 million programmatic venture, which is focused on industrial assets in the Long Island market.
“We believe the recent pullback in capital markets has created an opportunity to deploy equity into top tier, supply-constrained industrial markets at attractive pricing levels,” Joseph Farkas, CEO and founder of MRA, said in a company statement. “The Suffolk County industrial market has seen its vacancy rates shrink to below 3% over the past 12 months, with rental rates rising by more than 30% to $16-per-square-foot-net during the same period. Moreover, the Ronkonkoma submarket has a market vacancy of just 2.5%, boasts exceptional demographics, and is located just 45 minutes from New York City.”
Doug Profenius, vice president at Angelo, Gordon & Co., agrees with that assessment.
“Despite market turbulence, tenant demand for high-quality, functional industrial space remains robust in Suffolk County and we believe 195 13th Ave. and 2175 5th Ave. are both well-positioned to cater to that demand,” Profenius said in the statement.
The property at 195 13th Ave. is fully occupied by Max Finkelstein Inc., a regional automobile tire supplier owned by US Auto Force. The building has 18.5-foot clear ceiling heights, eight loading docks, and two drive-in doors.
About 2.3 acres of the 13th Avenue property is undeveloped land that could be used to expand the existing building by 30,000 square feet, as well as provide additional truck and vehicle parking. In addition, the property already has site plan approval for another 50,000-square-foot industrial building with 36-foot clear ceiling heights, according to a company statement.
Max Finkelstein Inc. will remain a tenant at the property and continue operations through June 2023. Additional operating revenue is being provided by a new 70,000-square-foot rooftop solar system, generating 986,000 kilowatt-hours of energy for community use.
2175 5th Ave. Ronkonkoma
The property at 2175 5th Ave. has 18-foot clear ceiling heights, three loading docks and two drive-in doors. Its only tenant is Alken Industries, an aerospace parts manufacturer that occupies just 10 percent of the property and will be vacating at the end of April 2023.
Joseph Galvano of Duval & Stachenfeld represented the buyers, while Jose Cruz, Nicholas Stefans, and Tom DiMicelli of JLL represented the seller, Lynest Associates LLC, in the 13 Avenue sales transaction. DiMicelli, Doug Omstrom and Max Omstrom of JLL’s Long Island office have been retained to market and lease the property.
Ralph Perna of Schacker Realty represented the seller, Kenco, in the 5th Avenue sales transaction and Perna has also been retained to market and lease the property.