Carco buys two properties
Two commercial properties in Huntington Station purchased by Kimco Realty Corp. at the top of the real estate market have sold at a lower price, the parties announced Monday.
A limited liability company controlled by Jericho-based Carco Builders Corp. purchased the 32,000-square-foot office building and 9,900- square-foot retail building at 100-110 Walt Whitman Rd. for $10.5 million.
Kimco, a New Hyde Park-based real estate investment trust that primarily invests in retail property, bought the properties at the height of the real estate market in 2007 for $12.7 million, according to property records. The buildings were part of an 11-property portfolio acquired from National Birchwood Corp. for $92.1 million, Security and Exchange Commission filings show.
Suffolk County office rents dipped during the recession but have begun to recover, according to data from real estate firm CBRE. Average office rents dipped to $23.90 per square foot in 2011 from $25.10 in 2008. In the third quarter of 2012 average rents rose to $24.34.
The properties are adjacent to the Walt Whitman mall. The office building is 71.8 percent occupied, and the retail space has been the longtime home of a T.G.I. Friday's franchise.
Scott Berfas, a managing director at Newmark Grubb Knight Frank who represented Kimco on the sale, said the transaction was a positive for the Long Island market. "A local operator of office buildings believes in Long Island, believes it's a core asset they want to own and is bullish in leasing the vacant space," Berfas said.
Kimco and Carco Builders did not immediately respond to calls for comment about the transaction.