Farmingdale industrial site sold for $6.35 million to New Jersey real estate group

A New Jersey real estate investment firm that has added several Long Island industrial properties to its portfolio in only a few years recently closed on a $6.35 million site in Farmingdale.

Faropoint, a Hoboken, New Jersey, investment company with more than 25 million square feet of commercial space in its portfolio, finalized the purchase of 1845 New Hwy., a 33,500-square-foot industrial space, company officials confirmed Tuesday. The purchase, which closed last week, marks the company’s 10th industrial purchase on the Island since 2023.

The property is occupied by tenant Jet Line Products, a swimming pool supply wholesale business that has “a couple of years left” on its lease at the site, said Matthew Bernstein, director of acquisitions for Faropoint.

“This was our 10th acquisition on Long Island,” Bernstein said, adding that the Island’s stock of industrial properties is ideal for the type of smaller industrial sites they are looking to invest in.

Recent industrial purchases by Faropoint on Long Island include the $5.2 million purchase of 10 Executive Blvd. in July, and the $17.5 million acquisition of two industrial buildings at 100 and 110 Wilbur Place in Bohemia in January, Bernstein said. 

Bernstein said Faropoint is focused on buying industrial sites between 20,000 and 50,000 square feet to capitalize on interest from warehousing businesses looking to ship goods within 25 miles. Properties like 1845 New Hwy. can appeal to “a wide range of businesses” looking for easy access to more affluent customer bases on Long Island, he said.

Eventually, he said, after acquiring a sizable portfolio of roughly 20 or more industrial properties with tenants, Faropoint would be in a better position to find a buyer looking for premium assets.

The Farmingdale property’s previous owner, Harris Development Group of Charlotte, North Carolina, did not put the property on the open market before the sale.

"Harris wasn't actively marketing the property or looking for a buyer,” Cole Malinowski, a commercial broker with Keller Williams Realty who represented the seller in the deal, wrote in an email. “This was an off-market private transaction.”

Malinowski said the building, built in 1975, has performed well over the years and has “long been home to Jet Line Products, which was recently acquired by Pool Corp.,” a publicly traded global pool supply company.

Officials with Jet Line and its parent, Pool Corp., did not respond to requests for comment.

Bernstein, with Faropoint, said given the Island’s relatively high number of smaller industrial sites, the company already is working on “expanding our footprint” further locally.

“We have a few other buildings we’re in contract on,” Bernstein said.

Faropoint's model of buying up properties with existing tenants with a plan to eventually sell large portfolios at once has become commonplace, said Ralph Perna, associate real estate broker with Melville-based Schacker Realty. 

"That’s the way that category of private equity works," said Perna, who has been working in industrial real estate for 51 years. 

Regarding the overall state of industrial real estate in the market, Perna said the situation is a bit of a mixed bag.

“It’s a tight market when it comes to the availability of buildings for sale,” he said, “but there’s a fair amount of buildings available for lease.”