Metropolitan Realty Associates Obtains Tax Relief for Garden City Square Building

Jericho-based Metropolitan Realty Associates LLC has agreed to a PILOT program with the Town of Hempstead Industrial Development Agency (IDA) that will dramatically cut taxes for 10 years on the developer's newly acquired building, 711 Stewart Avenue in Garden City, making it more economically attractive than ever for tenants to lease space.

The building recently was renamed Garden City Square.

MRA bought the 335,000-square-foot building in May for $15 million and soon thereafter renamed the property, which it plans to redevelop for mixed uses that will include office, medical and retail space. The building is adjacent to the Roosevelt Field Mall.

The PILOT, or payment-in-lieu-of-taxes program, will cut taxes at the building to about $2.91 per square foot – well below competitive buildings in Nassau County – and keep them there for the next three years, making the now-troubled property more economically attractive to prospective tenants. Taxes on the building, which is only 22 percent leased, are now $6.80 per square foot. After the third year of the program taxes would step up annually over seven years until they return to current levels. The program also provides for sale-tax abatement on renovations to the building.

The Hempstead IDA granted the PILOT program on June 23 and the agreement was signed July 29.

"Public-private partnerships, such as this PILOT program, enable us to quickly revive buildings such as Garden City Square and bring new jobs to the community," says Garden City resident Joseph A. Farkas, president of MRA. "The Hempstead IDA's decision to provide tax benefits to this project is indicative of their proactive approach in creating and maintaining jobs for the town of Hempstead and Nassau County."

Fred Parola, executive director of the IDA, noting that the property has had difficulty holding onto tenants, said, "Joe Farkas has a record of making excellent use of properties that are weak. We were excited about his presence in this important project."

A CB Richard Ellis team that includes Richard Karson, Robert Seidenberg, David Zelinski and Daniel Brandel, all of the firm's Woodbury office, is marketing space in Garden City Square on behalf of MRA.

MRA has been adept at using PILOT programs to jump-start difficult real estate projects. Its efforts include the Business and Research Center in Garden City, now home to Lifetime Brands and Nassau Community College, where over 300 new jobs were created, and the Sunrise Business Center in Great River, where two formerly half-vacant buildings are now leased and a newly constructed building is well on its way to full occupancy and more than 1,000 new jobs have been created and maintained.

For more information about Metropolitan Realty Associates visit www.metropolitanra.com.