Diam International to Relocate HQ

Diam has signed a 22-year sublease for the property with Qwest Communications, which leased the property several years ago from Alfred Weissman Realty. The Denver-based telecommunications company had planned to build a lavish computer technology/data center at the property. However, those plans were cancelled after the telecom bust a few years ago. The property, which was formerly a Saks Fifth Avenue distribution center, has sat vacant for about six years, city officials say.

David Tolly, executive vice president and chief financial officer of Diam, says that the company signed the sublease with Qwest in December but required approvals from the City of Yonkers to move forward with its plan. The company had been working on trying to secure the space for about a year. He says Diam will undertake a "significant" capital improvement effort at the property in preparation for a June 2004 occupancy.

Tolly also notes that Diam plans to utilize the 555 Tuckahoe Rd. property as its corporate headquarters. The firm will also house some manufacturing functions at the building as well. Diam will retain its presence at 26-45 Brooklyn/Queens Expressway West in Woodside, where it currently occupies approximately 100,000 sf of space.

Tolly says that the company's strong business growth precipitated its deal in Yonkers, where it expects to hire between 600 and 700 new workers. "They had the ideal building for us," Tolly says, adding that the property's location, its access to the Yonkers labor pool and the benefits it will be receiving from the city were keys to the deal.

Before focusing on the Yonkers property, the company had studied the entire New York metro area market, including sites in New Jersey and Connecticut, he notes.

Yonkers Industrial Development Agency Executive Director Edward Sheeran says the Yonkers IDA has induced Diam's application for approximately $14 million in bond financing as well as property, sales and mortgage tax exemptions from the city. The 555 Tuckahoe Rd. property is also located in a designated State Empire Zone, which qualifies the firm for additional tax-related and job creation benefits.

Ross Schneiderman of NAI Friedland Realty Inc. of Yonkers represented Diam, while Leonard Zimmerman and David Schneck of Grubb & Ellis represented Qwest.

Diam employs approximately 1,300 workers in the New York metro area. The company has four major US manufacturing locations in Los Angeles, Chicago and several in New Jersey.