GlobeSt.com EXCLUSIVE: Investment Group Takes Office/Warehouse Property for $25M

BETHPAGE, NY-In a deal that took seven months to complete, an investment group led by Kalmon, Neil and Josh Dolgin has acquired a 385,000-sf office/warehouse building and a 25-acre development parcel here for $25.4 million. The seller was Nassau Realty Group, which owned the property since 2003.The building at 15 Grumman Rd. underwent major renovations, including upgrades to the mechanical and electrical systems, after Nassau Realty acquired the site two years ago. It is 100% leased to Northrop Grumman’s AEW and IT divisions, and E&F Public Warehouse. Northrop Grumman has a lease for 50% of the property through the end of 2008, with numerous extension options. E&F leases the 100,000-sf warehouse portion, which is 20-foot high clear span space with numerous tailboard loading and drive-in docks.”This [property] gives us the opportunity to acquire major mid-Nassau County land with multiple possibilities of uses and office space leased to North Grumman,” explains Kalmon Dolgin, president of Kalmon Dolgin Affiliates, tells GlobeSt.com. “We are happy with the tenancy and the terms of the leases.”He also sites the property’s proximity to the Long Island Railroad’s Bethpage station as a factor in the firm’s decision. There are no current plans for the 25-acre development parcel, according to Dolgin. “At the moment all options are open. We’re pretty much getting our hands around the project.” He adds the land is zoned industrial/office.The property had an existing mortgage which represented a small fraction of its current value so a lot of cash was required at closing, according to the group. As result, the investment group assumed the existing mortgage and replaced it with new financing. The Dolgins also used a 1031 exchange to complete the transaction. KND Management Co., Inc., a Dolgin family company that is the management arm of the family’s real estate brokerage, investment and management firm, will manage the property. The sellers were represented by Gary Meltzer of Lippe, Meltzer while the purchasers were represented by Steven Epstein of Jaspan, Schlessinger & Hoffman. The seller’s broker was Charles Chiaramonte of Select Investments and Todd Buckvar of Buck Realty. The purchasers were represented by Kalmon Dolgin Affiliates, Inc. Kalmon Dolgin Affiliates is a Brooklyn-based real estate firm.