ELM Signs mega-lease

As Seen in Long Island Business News August 15, 2003 By NICK ANASTASI Staff Writer

BRENTWOOD-ELM Global logistics signed the largest lease on Long Island this year, a 15 year deal for all 560,000 square feet on 30.5 acres at 50 Emjay Blvd.

ELM, which provides out-sourcing of warehouse and distribution services to companies on Long Island and across the country, also has an option to buy from Mack-Cali Realty Corp., a Cranford, N.J., real estate investment trust.

Elm already occupies 400,000 square feet at the site. It is renewing its lease for that space and taking the remaining 160,000 square feet that had been occupied by the now-bankrupt Allou Healthcare. Elm plans to take over the new space as of September 1. “We had the opportunity with Allou’s departure to fit more of our operations under one roof,” said Bill Conboy, president of privately held ELM.

As a result of the new lease agreement, ELM will be relocating operate the Emjay site from its Deer Park facility at 14 West Jefryn Blvd, which measures 80,000 square feet. The company also has two industrial facilities in Hauppauge, which measures 150,000 square feet each. Conboy said the decision to consolidate nearly two-thirds of its operations into the Brentwood facility should improve the company’s efficiency.

The Deer Park building has since been placed on the market and is in contract to be sold, according to Conboy. A sale price was no disclosed, but real estate sources said it carried an asking price of $58 per-square-foot, which translates to $4.64 million.

The buyer according to real estate sources is Island Recreational, a retailer of outdoor recreational items.

“This represents one of the largest and longest lease transactions of its type,” Richard Cohen, president of Ashlind Properties, said of the lease of 50 Emjay.

Cohen, who maintained long-term relationships with both ELM and Mack-Cali represented both firms in the lease negotiations.

In addition, he is representing ELM in the pending sale of its Deer Park facility, which he said is scheduled to close by the beginning of the fourth quarter.

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