Metropolitan Realty Associates, Partners Buy Jericho, Long Island Office Building
A well-known office building in Long Island, NY, The Jericho Atrium was purchased by Metropolitan Realty Associates LLC, a national real estate investment firm based in Garden City, NY.
Garden City, NY (PRWEB) August 3, 2007
Metropolitan Realty Associates LLC, along with equity partners Angelo Gordon & Co. and Belvedere Capital, has purchased The Jericho Atrium, in Jericho, NY, and two other properties in Mineola from Kimco Realty Corp. The acquisition will rank Metropolitan among the largest landlords on Long Island.
Terms of the transaction, which closed July 31, were not disclosed. Kimco acquired the properties as part of its purchase of the Birchwood Development Corp. commercial portfolio. That transaction closed simultaneously with Metropolitan's purchase.
The properties acquired by Metropolitan and its partners are extremely well-located on highly visible, well-maintained sites and provide great upside potential, said Metropolitan President Joseph A. Farkas. "We think there is tremendous upside in the market."
"The Jericho Atrium is one of the premier office locations on Long Island with a compliment of outstanding amenities," Farkas said of the Class-A, 145,000-square-foot Jericho Atrium at 500 N. Broadway, Jericho. "I call it the jewel of Jericho."
The building is located just north of the Long Island Expressway, adjacent to the Birchwood Plaza Shopping Center with its various restaurants and other retailers, including Whole Foods Market, Starbucks, CVS, a U. S. Post Office, State Bank of Long Island, Marshall's and Long Island's famous Milleridge Inn.
The backdrop for the deal is an active Long Island investment sales market that has seen several high profile, high-price-tag transactions involving Class A office buildings being acquired by buyers seeking to reap the benefits of climbing office rents. SL Green recently paid a record $328 per square foot for two Class-A buildings in Jericho.
The Jericho Atrium is 97 percent occupied and all tenants in the building have leases that have annual rent step ups. Major tenants include residential developer Beechwood Organization, New York State United Teachers and Höegh Autoliners Inc., the North American division of a Norwegian ocean shipping company. Real Estate Strategies LLC, current leasing agent for the building, is being retained.
Designed by Hauppauge, NY, architect Peter Elkin, the Jericho Atrium was created on a former retail site that housed, in turn, Great Eastern, W. T. Grant and Woolco discount department stores. The building features two atrium lobbies, as well as a landscaped courtyard located in the center of the property. Building amenities include a conference room, a concierge security attendant and complimentary Wall Street Journal.
Grubb & Ellis Management Services Inc. has been retained to manage the Jericho Atrium.
The other properties purchased by Metropolitan and its partners are 410 Jericho Tpke., Mineola, a 6,800-square-foot office building that had been Birchwood's headquarters, and 400 Jericho Tpke., Mineola, 14,000 square feet of undeveloped land. Both are just west of major arteries, Glen Cove Road and Northern State Parkway.
Ripco Realty is marketing the undeveloped property at 400 Jericho Tpke. as a build-to-suit retail site, because of its prominent location on a traffic-light-controlled intersection on one of Long Island's most heavily traveled roads. Tri-State Properties is the sales agent for the adjacent office building.
Established in 2001, Garden City, NY-based Metropolitan Realty Associates LLC is a national real estate investment and development firm, owning more than 700,000 square feet of office space on Long Island. In addition to its newest acquisitions, Metropolitan Realty Associates owns the Business and Research Center at Garden City, in Garden City, NY, and the Sunrise Business Center in Great River, NY. It also owns The Southwest Corporate Center in Houston, TX. For more information about Metropolitan Realty Associates visit www. metropolitanra. com