Fairfield Properties spinoff buys Jericho office building
MDJ Realty Services spent $22.5 million to buy the roughly 145,000-square-foot office building in Jericho.
A company spun off from Fairfield Properties has bought a large office building in Jericho for $22.5 million.
MDJ Realty Services, headed by Michael, Daniel and Jacob Broxmeyer, bought the 145,000-square-foot office building at 50 Jericho Quadrangle in Jericho in May, according to a news release from CBRE, a commercial brokerage that represented the seller in the deal.
MDJ’s purchase comes after Michael and Gary Broxmeyer announced plans to divide the family-owned real estate company Fairfield Properties, a huge owner of apartments and office buildings on Long Island, into two independently controlled firms.
Manhattan-based real estate investor TPG Angelo Gordon sold the leasehold interest in the building, which gives MDJ the right to purchase the land under the building in 2044, said Jeff Dunne, a vice chairman with CBRE who represented TPG Angelo Gordon in the sale.
MDJ plans to renovate the Jericho Quadrangle property by upgrading its finishes, adding a new gym and revamping the outdoor landscaping, Daniel Broxmeyer told Newsday.
He called the building “a tremendous asset” that will help MDJ “expand [its] footprint” into the Nassau County office market.
Accounting firm Grassi & Co.'s more than 40,000-square-foot offices is the largest tenant at the building, which is 76% leased overall, according to CBRE. Other tenants include freight shipping and logistics company Liberty Maritime and office technology company Leslie Digital Imaging.
That high occupancy rate, and the building’s location near the Long Island Expressway and Jericho Turnpike, made it a good investment for MDJ, which plans to hold onto it in the long-term, Dunne said.
Last month, Fairfield executives revealed that the company would split, with Michael Broxmeyer, who controls a 39% stake in Fairfield, running MDJ Realty Services while Gary Broxmeyer, who controls 61% of Fairfield, will lead his own business.
MDJ made an acquisition in Suffolk county at the end of last year, acquiring another office property at 4250 Veterans Memorial Hwy. for $13 million.
MDJ plans to add more buildings to its residential and office portfolio, though Michael and Daniel Broxmeyer declined to share additional details.
