Garden City Square sold as business condos
The Garden City office and retail building that is the future home of a discount warehouse and a fitness center is being sold off in three pieces.
Garden City Square at 711 Stewart Ave. has been split into three parts: the 121,000-square-foot BJ's Wholesale Club location, which has a 20-year lease and is due to open in October; the 55,000-square-foot LA Fitness space, which has a 15-year lease and expects to open next year; and the offices, which are nearly 60 percent leased. The medical office tenants include NRAD Medical Associates, Endoscopy Center of Long Island and Cardiovascular Medical Associates.
Each of the three parts is its own condominium unit.
Splitting a commercial building into condominiums so it can be sold as a whole or in pieces is "a sharp idea," said Charles Tabone, managing principal at Newmark Grubb Knight Frank in Melville, who is not involved in the transaction. "It's a little out of the box, it's not something that happens that frequently."
Located near Roosevelt Field mall, the 293,500-square-foot Garden City Square has received a $35-million overhaul, according to its co-owners, Jericho-based Metropolitan Realty Associates and Angelo, Gordon & Co. of Manhattan. The property formerly housed a Grumman Corp. facility and the onetime headquarters of CA Inc., then known as Computer Associates.
The developers bought the 17-acre property for about $45 a square foot in May 2010, when it was 20 percent occupied and the commercial real estate market was bottoming out, said Joseph A. Farkas, president of MRA.
They are taking a "two-tier approach," aiming to sell it either in its entirety or in parts, Farkas said. Listing prices have not been disclosed.
The developers' 10-year tax breaks from the Hempstead Industrial Development Agency are being passed along to tenants as discounts.