Prologis, a Denver-based developer of logistics facilities, is in contract to buy property owned by Northrop Grumman for $51.2 million.
The buyer plans to build a 239,070-square-foot warehouse and distribution complex on the 17-acre Bethpage site, which is currently occupied by two office buildings totaling 218,000 square feet and a 10,893-square-foot former steam plant that will be demolished.
Northrop Grumman, which once employed 27,000 people on Long Island, has been shrinking its once sprawling footprint in Bethpage for the last couple of decades. Most of the West Falls Church, Va.-based aerospace firm’s former property here has been redeveloped for warehousing and distribution facilities and other light manufacturing uses.
In Nov. 2021, the company hired JLL to market this latest piece of its property, the bulk of which is located at 600 Grumman Road West.
The sale price of about $3 million an acre matches the high-water mark for recent sales of industrial property on Long Island, including the 15 acres purchased for $45 million last summer by Brookfield Asset Management on New South Road in Hicksville, located a stone’s throw from the Bethpage site that Northrop Grumman is selling.
Prologis has applied to the Nassau County Industrial Development Agency for economic incentives to assist in its planned $106 million Bethpage redevelopment project. The company has asked the IDA for a 20-year payment-in-lieu-of-taxes agreement, as well as sales and mortgage tax exemptions. Attorney Dan Deegan of Forchelli Deegan Terrana is representing Prologis in its request for benefits, according to the IDA application.
Prologis still needs to secure approvals from the Town of Oyster Bay for the Bethpage project, for which the developer hopes to begin construction in May 2023 and expects to complete in the spring of 2024.
The JLL team representing Northrop Grumman in the sale includes Jose Cruz, Marc Duval, Andrew Scandalios and Jordan Avanzato. The brokers declined to comment on the pending deal.