Listen to this articleThe last remaining property in RXR’s once sprawling Woodbury portfolio has sold for $23.5 million.
TKF Burnside Real Estate, a Nassau County-based commercial real estate investment group, purchased the 255,019-square-foot building on 14.25 acres at 1000 Woodbury Road.
RXR has been shedding its Woodbury properties over the last several years. RXR once had more than 30 office and industrial properties in Woodbury that it took over from previous owner CLK/Houlihan-Parnes in a loan-to-own strategy more than a dozen years ago.
The Class-A office property at 1000 Woodbury Road is about 60 percent occupied and the buyer plans on investing $8 million in renovations and tenant improvements to increase its occupancy rate.
The acquisition and planned improvements were assisted with economic incentives from the Nassau County Industrial Development Agency, which included a 20-year payment-in-lieu-of-taxes agreement and sales tax and mortgage tax exemptions.
“This is a recognition by the Nassau County IDA that there is a looming problem for many office buildings on Long Island created by the new hybrid work model,” attorney Dan Deegan, a partner at Forchelli Deegan Terrana in Uniondale, who represented the buying group, told LIBN. “The challenges facing many of these office buildings should be addressed by policymakers on a regional basis to prevent economic and physical decline. In the interim, the IDA’s proactive solution here will ensure that this particular property will be revitalized with significant physical improvements and attract first class tenants.”
Eastern Nassau County is one of Long Island’s “most coveted submarkets” with an average availability rate of only 12.9 percent over the last four years, according to a statement from CBRE, which brokered the sale.
Jeff Dunne, Steve Bardsley, Travis Langer and Philip Heilpern of CBRE procured the buyer and represented the seller, RXR, in the Woodbury sales transaction.
“1000 Woodbury Road is well positioned in a historically strong market to create significant upside for the new ownership,” Dunne said in the statement.
A member of the new ownership group, Brian Lee, who is also a principal and executive managing director at Newmark, which has the leasing assignment for the property, called 1000 Woodbury a landmark office building.
“We are honored that RXR chose us to be the new owner of this great property. The TKF Burnside ownership and investment group is planning building and amenity upgrades consistent with Class-A office buildings for the most discerning tenants,” Lee said. “The experienced institutional ownership and strong building capitalization will enable Newmark, as managing and leasing agents, to provide exceptional concession packages for tenants to expedite the lease up of the building. Activity has been brisk since closing as tenants today are looking for this combination of high-quality buildings with strong experienced sponsors.”
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
