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Entourage Commerce to move from Queens to Suffolk County

Pharmapacks CEO Andrew Vagenas and Jonathan Webb, CEO

Pharmapacks CEO Andrew Vagenas and Jonathan Webb, CEO and co-owner of Entourage Commerce LLC, at their warehouse in College Point on Thursday, Jan. 29, 2016. Photo Credit: Newsday / Alejandra Villa

A Queens-based distributor of health and beauty products has decided to move to Suffolk County instead of New Jersey, officials said Thursday.

Entourage Commerce LLC will accept offers of up to $3.1 million from the county’s Industrial Development Agency and New York State that lower the costs of operating in Islandia.

The fast-growing company and its landlords received final approval from the IDA Thursday for up to $2.2 million in tax breaks, including $1.1 million off property taxes, or a 29 percent reduction, over 15 years.

Entourage also will receive $900,000 in state tax credits over 10 years if it creates the promised jobs.

The business expects to add 175 people to its payroll of 250 by 2019. Records show employees earn, on average, $26,000 per year, excluding medical and retirement benefits.

“This is an e-commerce...they could be located anywhere and we want them to be located in Suffolk,” said IDA executive director Anthony J. Catapano.

Howard Zemsky, Gov. Andrew M. Cuomo’s economic development czar, cited Entourage’s mulling of New Jersey as its future home and said, “We are ensuring a New York business continues to grow and create jobs in New York State.”

Entourage chief financial officer James Mastronardi said it will rent 1516 Motor Pkwy. for at least 15 years. The building is being purchased for $12.6 million by Blumenfeld Development Group Ltd. of Syosset, one of Long Island’s largest landlords, and the Nussdorf family, which has personal ties to one of Entourage’s owners, he said.

The facility, at 140,000 square feet, is nearly five times larger than the two buildings now used by Entourage in College Point, Queens.

More than $2.3 million in renovations are planned and $10 million in equipment purchases, according to Blumenfeld Development executive Raffaela Petrasek.

Entourage provides shipping services for two related online retailers - pharmapacks.com and stockngo.com - as well as other distributors. It also sells through Amazon.com, Walmart.com and others.

Entourage ships 130,000 packages a week, and with the new building would ship up to 60,000 per day, CEO and co-owner Jonathan Webb said.

He also said the company would end this year with sales of $160 million and in 2017, $305 million.

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