Renews 55,000SF Lease in Steel Equities Building. Town of Islip IDA Provides Incentive to Keep Firm in New York
ELM Global Logistics has renewed its lease for 542,300 square feet in the industrial building at 50 Emjay Blvd. in Brentwood, NY.
The 15-year lease deal marks the largest industrial lease signed on Long Island so far this year.
ELM had considered relocating out of the state, possibly consolidating operations in New Jersey. An economic benefits package from the Town of Islip Industrial Development Agency convinced the firm, and its 250 jobs, to stay put. The Islip IDA approved a PILOT (payment in lieu of taxes) program and $13,800 in sales tax exemptions for the tenant and landlord.
The 550,000-square-foot warehouse was constructed in 1986 on 30.5 acres in the Hauppauge Industrial submarket of Suffolk County. It features 64 loading docks with levelators, five 12-foot drive-in bays, 26-foot clear heights, building signage, a fenced lot, and a rail spur. ELM has occupied space in the building, previously a Hills Supermarket warehouse, since 1981.
Brentwood Steel LLC, an affiliate of Bethpage-based Steel Equities, acquired the asset in February 2006 for $26.75 million, according to CoStar data.
See CoStar COMPS #1178972.
Richard Cohen, president of Ashlind Properties, represented the tenant in lease negotiations. Joseph Lostrito with Steel Equities represented the landlord in-house.
"This lease renewal allows one of Long Island’s largest industrial property users to remain and support the local economy," said Cohen. "It could not have happened without the help of the Islip IDA and the cooperation of the landlord."
ELM provides outsourcing of warehouse and distribution services to some of the largest companies on Long Island and across the country. The company, with facilities in Ronkonkoma, NY and Burlington, NJ, started looking at the lower costs a move to New Jersey could provide, while the number of companies with large shipping requirements on Long Island has dwindled.
"The IDA incentives enable us to balance that out," commented Bill Conboy, president of the privately-held ELM, who added that Cohen guided ELM in its approach to the Islip IDA for economic assistance. "I’m grateful we did it. It makes a lot of sense."