400 KSF Long Island Office Portfolio Changes Hands
- Jul 25, 2013
CenterSquare Investment Management Holdings Inc., known as Urdang Capital Management until prior to July 1, and Ivy Realty have sold Crossroads Corporate Center and Crossroads Executive Center, two multi-building office parks on Long Island, N.Y. Matrix Realty Corp. acquired the properties, adding 400,000 square feet of office space to its portfolio.
Located in Hauppauge, Crossroads Corporate features 215,000 square feet in three single-story structures and one four-story building. Crossroads Executive, sited less than one mile away in Islandia, is comprised of nine single-story buildings accounting for an aggregate 185,000 square feet.
The sale, orchestrated by commercial real estate services firm Colliers International on behalf of CenterSquare and Ivy, comes nine years after Ivy acquired the assets from Heatherwood Communities. Colliers found more than a few suitors for the properties.
“This portfolio was one of the few large institutional quality office offerings in Suffolk County and thus attracted strong interest from investors focused on Long Island,” Ken Enos, a senior executive director with Colliers, said in a prepared statement.
The upswing in the Long Island office market also served as a magnet for investors. Suffolk and Nassau counties ended the first quarter with an average total vacancy rate of roughly 11.5 percent, according to a report by Colliers. One of the main drivers is the healthcare industry; the North Shore-LIJ Health System, Winthrop-University Hospital and Stony Brook University Hospital all play a key role.
“Their evolution is a response to the new reality of medical care, which requires additional space in a combination of medical offices, new programs, and administration,” Herb Agin, CEO of Colliers’ Long Island office, told Commercial Property Executive. “Since the turnaround began in 2010, steady growth in sectors such as law, accounting, and financial services by local small- to mid-size companies have also accounted for increased absorption.”
The issue of options is also buoying demand, according to Agin. “An equally important factor is that as a mature suburban market, the opportunity to develop new projects is limited and the cost is prohibitive. Therefore existing properties in good locations that have been well maintained and/or refurbished by ownership are in high demand.”