Amazon continues its ambitious Long Island expansion with the leasing of two Melville industrial properties.
The e-commerce giant has leased two adjacent buildings at 540 Broadhollow Road and 1770 Walt Whitman Road from a subsidiary of Rubie’s Costume Company. The combined properties total about 310,000 square feet on more than 21 acres.
Amazon plans to invest several million in renovations to the properties to create a warehouse and distribution complex for last-mile deliveries. The company is not seeking economic incentives for the Melville facility, which is expected to open by the end of the summer.
The Melville deal is the latest in Amazon’s ongoing expansion on Long Island, making it one of the largest users of commercial real estate here. The company opened a 110,658-square-foot distribution facility on 19.15 acres at 100 Precision Drive in Shirley last year and a Carle Place distribution center at the 7.4-acre site formerly occupied by a Waldbaums supermarket at 2 Westbury Ave.
Steel Equities, which is a partner in the Carle Place redevelopment, is already leasing two of its properties in Bethpage to Amazon, including a 161,360-square-foot building at 201 Grumman Road West that was formerly occupied by Goya Foods and a 140,000-square-foot industrial building on 13.24 acres at 80 Grumman Road West that was once leased to Cablevision.
In addition, Amazon is planning to lease a yet-to-be-built 91,000-square-foot warehouse at the Hampton Business District in Westhampton Beach. The company is also planning to lease a yet-to-be-built 204,000-square-foot warehouse on the 39-acre former site of Cerro Wire in Syosset.
Amazon received economic incentives from the Suffolk County Industrial Development Agency for its Westhampton Beach project and has applied to the Nassau County IDA for tax breaks on the Syosset project.
The Melville buildings are part of Rubie’s Costume Company’s extensive real estate portfolio that’s been offered for lease after the firm relocated most of its warehousing and distribution to Wisconsin.
Over the last few years, Rubie’s, one of the world’s largest costume makers, has been shifting the bulk of its manufacturing to facilities to other states like South Carolina and Arizona, and other countries in Asia and Central America. The company, which emerged from bankruptcy last year, continues to maintain its executive offices, sales, marketing, design and development functions here.
Frank Frizalone of Cushman & Wakefield represented the tenant, while Bobby Schliessman of MHM Realty represented the landlord in the Melville lease transaction.