Milvado Property Group, a Syosset-based real estate firm, has received preliminary approval for tax breaks from Suffolk County on its planned $6.3 million purchase and renovation of a vacant industrial site in Ronkonkoma.
The company said it plans to purchase 49,850 square feet of industrial space at 10 Drew Court, and update the property’s 13 individual industrial condominium units, according to its benefits application to the Suffolk County Industrial Development Agency. An additional unit at the site is owned by another company.
The company said in its application that the project will ultimately create 60 jobs.
The agency preliminarily approved the benefits package during its monthly meeting last week.
“We’ve realized the market has shifted dramatically and there’s been lots of improvement in the industrial market,” said David Hercman, director of asset management for Milvado, during last week's IDA meeting. “There is a high demand for the smaller incubator space.”
The IDA granted preliminary approval for a sales tax exemption of up to $103,500 on renovation costs for the project, a $26,250 mortgage recording tax exemption, and a 10-year deal on property taxes. In total, the developer will save an estimated $289,686 in property taxes over the decadelong deal.
“The space is going to be designed for smaller companies that are looking to grow,” said Anthony Catapano, executive director of the IDA. “A tenant could be a company that is currently based in their basement or garage and this could be their first space out of that environment to grow their company.”
Milvado, which is currently in contract for the site, plans to close on its purchase of the industrial units in July and expects to begin leasing the units within six months of the acquisition.
The real estate firm owns 36 properties on Long Island, including more than 2 million square feet of space in Suffolk County.