A $13-million warehouse deal is paving the way for a new FedEx Corp. distribution center in Bohemia.
The Memphis-based delivery company has inked a 10-year lease for the space at 100 Orville Dr. -- as it undergoes reconstruction -- with Charlotte, N.C.-based developer SunCap Property Group, which recently purchased the property.
The move to Bohemia is an expansion for FedEx. The new facility, which will have 158,000 square feet of space after renovations, will more than triple the size of the operation it is replacing -- a 42,000-square-foot space in Commack, FedEx spokesman David Westrick said in an email.
Construction is expected to be completed in September, and Commack employees will move to the Bohemia warehouse. New jobs may be added if necessary, he said.
FedEx "chose the site due to ease of access to major highways, proximity to customers' distribution centers, and a strong local community workforce for recruiting employees," Westrick said.
SunCap, which has developed several distribution centers for FedEx in the past, acquired the warehouse -- on a 12-acre property -- from Rite-Aid Corp. in a deal that closed Jan. 8. An executive from SunCap confirmed the deal but declined to comment.
The current 250,000-square-foot warehouse at 100 Orville Dr. will undergo partial demolition and be reconstructed for FedEx's uses, with additional space for parking and delivery vehicles. The site has received zoning approval and is under planning department review.
FedEx's intent to lease the space aided in the approval process for the renovations, said Ralph Perna, an executive managing director at the Melville office of commercial brokerage Newmark Grubb Knight Frank, who represented Rite-Aid in the $13-million sale.
Dan Gazzola of Newmark also represented Rite-Aid in the transaction. SunCap's broker was Pittsburgh-based Kirk Bittel of Fischer & Co.