Commack industrial facility sells for $58.25 million

A newly built industrial facility in the Long Island Innovation Park at Hauppauge recently sold for $58.25 million, global real estate firm Cushman & Wakefield announced Tuesday.

The 178,134-square-foot building was developed and sold by the San Francisco-based Bristol Group, Inc. to global asset management business New York Life Investment Management, according to a news release. The sale formally closed Oct. 1, a Cushman & Wakefield spokesperson said.

Kyle Schmidt, a member of Cushman & Wakefield’s National Industrial Advisory Group, said in a news release that “49 Mall Drive represents a rare opportunity to acquire newly constructed, institutional-quality industrial product in one of the most supply-constrained markets on the East Coast. Long Island tenant demand is extraordinary with leasing activity reaching an all-time quarterly high earlier this year. Against that backdrop, the property's functionality and location along the Long Island Expressway, along with its core plus profile made it a compelling investment opportunity.”

The Commack facility is on 10.75 acres near the Long Island Expressway and Northern State Parkway, and includes 31 dock-high loading doors, two drive-in doors, 205 car parking spaces, 16 spots for trailers and a 130-foot truck court, according to a news release. 

Some of the property has been leased, with 124,182 square feet still available. Cushman & Wakefield declined to share current tenants.

Bristol Group purchased the site for $9.75 million in 2021, according to county land records. Westhampton-based Independent General Contracting built the facility after demolishing a building on the site formerly used to house pharmaceutical company Forest Laboratories.

There are 39 other logistics properties with buildings that are of roughly the same quality and also larger than 50,000 square feet on Long Island, according to CoStar, a commercial real estate data platform.

"That sort of building is pretty uncommon within the broader context of the industrial market on Long Island," said Jared Koeck, associate director of market analytics at CoStar.

The Long Island Innovation Park at Hauppauge employs over 55,000 workers, is home to 1,300 companies and has an economic output of more than $13 billion, according to HIA-LI, the group that acts as the park's steward.

“With limited opportunities for new development and continued demand for space, transactions like this underscore the park’s growing appeal and the increasing value of its properties,” said Terri Alessi-Miceli, president and CEO of HIA-LI, in an emailed statement. 

New York Life Investment Management could not immediately be reached for a comment.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.