EAST GARDEN CITY, NY – Plans to build a distribution center at a historic site appear to be on hold as the developer may have changed the original proposal.
Brookfield Properties in July 2021 paid $13.2 million for a 6.5-acre site and office building at 107 Charles Lindbergh Blvd., where the real estate firm was reportedly planning to build an e-commerce logistics complex for an unnamed tenant.
The Town of Hempstead Industrial Development Agency granted Brookfield $33.8 million in economic incentives for the reconstruction project, and the Manhattan-based firm also received a town permit to demolish the two-story, 98,000 square-foot building.
But the redevelopment, which was reportedly to include a 100,000-square-foot warehouse and distribution center and take up to 18 months to build, appears to have stalled. While the building has since been leveled and construction vehicles are parked at the site, there are no signs that the project has broken ground.
Brookfield did not respond to requests for comment.
Hempstead Town IDA Chief Executive Officer Fred Parola told Patch that Brookfield either wants to amend or change the original proposal.
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“How they altered it, I have no idea, but right now it’s all in limbo,” Parola said. “And with a new proposal, they are nowhere.”
Parola noted that the IDA enacted a preliminary inducement in the case, and Brookfield must once again resolve all the agency’s preconditions, from applications to environmental and building code requirements, before seeking economic incentives for an amended or new plan.
“They haven’t done that, so that’s the reason why we have not entertained anything with them since they initially contacted us,” Parola said of Brookfield.
The July sale involved Yehuda Goltche of Venture Capital Properties in Manhattan, who represented both Brookfield and the seller, Dr. Shahrokh Abiri, a radiologist and real estate investor located in Brooklyn. In 2017, Abiri paid $5 million for the building, which previously housed an Internal Revenue Service office before the agency moved to a facility in Bethpage in 2012.
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Goltche told Patch that at the time of the closing last summer, Brookfield did not have a tenant in mind for the proposed distribution center, nor does the firm currently have one. Parola said that if Brookfield did originally have a tenant for the property, the firm didn’t disclose that information to the IDA.
“But in an initial, preliminary situation, that’s not unusual,” he added.
Part of historic Mitchel Field and neighboring Nassau Community College, the property has an underlying ground lease with Nassau County, according to Long Island Business News. The property is near Nassau Veterans Memorial Coliseum, the site of the county’s proposed 72-acre redevelopment project, including office buildings, apartments and a research and development center, which is slated to break ground in March.
If built, the proposed distribution center would also neighbor logistics centers of the United Parcel Service and United States Postal Service.
