An industrial property in Melville traded for $35.15 million, after the seller canceled a planned expansion project.
A subsidiary of Brookfield Properties purchased the 119,000 square foot building on 8.26 acres at 135 Spagnoli Road.
The agreement was a sale-leaseback with the seller, Perfume Worldwide, a distributor of perfumes, cosmetics and other personal care products, which will remain a tenant of the property for the next five years.
Perfume Worldwide was approved for tax relief by the Suffolk County Industrial Development Agency last year to help with a planned $30 million expansion of the Melville property, which it had leased since May 2019. company purchased the property in June 2021 for $18.65 million, but decided not to proceed with the expansion project following Brookfield’s offer to purchase.
“The expansion no longer made economic sense under the sale-leaseback transaction,” said attorney Andrew Presberg, who represented Perfume Worldwide in the deal. “The IDA benefits received to date were only a tax exemption on mortgage registration, as the property tax abatement had not yet been applied. The company reimbursed to IDA 100% of the benefits it had already received.”
Gary Chimeri of Paramount Properties Group represented the buyer, as well as the seller, PRNK1, LLC, in the Melville sale transaction.
Chimeri says the huge demand for warehouses and distribution facilities here has been the driving force behind big sales like these.
“These institutional buyers were able to hedge their bet against the recession, as well as some of the new developments that are expected to start in the next 18 to 24 months,” Chimeri told LIBN. “It has essentially been a gold rush to acquire industrial land in its own right to accommodate an Amazon credit tenant or similar.”