In a complicated deal here, which has been in the works for quite a while, the 300,000-sf, six-story Standard Motor Products Corporate Headquarters at 37-18 Northern Blvd, has officially changed hands. An out-of-state pension fund, EX 11 Northern Blvd. Acquisition LLC, run by JP Morgan, has purchased the property and will develop it into multiple loft-style commercial tenancy with ground floor retail. The sale had a contract price of $40.6 million.
300,000-SF HQ Deal Closes at Nearly $41M
The property was placed in contract through Greiner-Maltz, and after multiple rounds of negotiation, with more than 15 bidders jostling to become the new owners, according to president Maltz, it sold. "Standard Motors Products, like many other industrial companies, have been slowly outsourcing manufacturing," Maltz explains to GlobeSt.com. "It didn't make sense to have a manufacturing in that building any longer. Instead, they wanted us to sell the property for the highest price they could get and then lease back the corporate offices." He continues that SMP wanted control over the tenants and as part of the sale, the company agreed to lease back 60,000 sf.
Maltz agrees that the area is seeing growth. "The area is on the fringe of an industrial neighborhood that is subject to a residential rezoning plan and since this property is just outside this zone, it will benefit in the long-term." He adds that it was a good transaction for Queens "because it takes a building that was housed by a single company and now it is going to be an incubator tenant. It keeps companies in the City at an affordable space so they aren't forced to relocate."