NYC magnate, Conn. corp. feel IDA’s holiday spirit

Here to stay: The Intercounty Appliance Corp. will continue its appliance-buying cooperative operations on Long Island, after selling and leasing back its Medford headquarters.
BY GREGORY ZELLER //

The Brookhaven Industrial Development Agency is feeling the holiday spirit, giftwrapping new incentives deals for a growth-minded East Patchogue equipment-rental cooperative and a New York City developer with plans for a Medford warehouse.

The IDA will help Connecticut-based national equipment rental company United Rentals build and operate an 18,000-square-foot facility on 10 acres in East Patchogue, designed to store and distribute construction and industrial equipment.

And the development agency is helping 10 National Medford LLC, an affiliate of NYC-based property owner The Feil Organization, purchase the Medford headquarters of appliance cooperative Intercounty Appliance Corp., a chapter of the New Jersey-based NECO Alliance buying cooperative.

Both incentives deals were approved by the IDA in November and announced this week.

Armed with its IDA tax-abatement deal, Stanford-based United Rentals will demolish two existing buildings – a former trucking terminal at 250 Orchard Road in East Patchogue – and replace them with a “distribution center” designed to store, repair and ship equipment to United Rentals retail locations in New York, New Jersey and Connecticut.

A Feil for Long Island: New York City real estate magnate Jeffrey Feil is no stranger to LI.

The $8.5 million renovation project is projected to create 34 temporary construction jobs and 40 permanent on-site jobs, according to the Brookhaven IDA, which is “pleased that United Rentals plans to expand its operations in our town,” according to IDA Chairman Frederick Braun III.

Meanwhile, through its transaction-specific LLC, The Feil Organization – which owns Sunrise Business Center in Great River and the Levittown Mall, among other Long Island properties – is receiving tax breaks that will facilitate its $30 million purchase and leaseback of Intercounty Appliance’s 250,000-square-foot National Boulevard operation.

The Medford warehouse operation, which covers approximately 30 acres, is the headquarters of the Intercounty Appliance Corp., which leverages the cooperative buying power of numerous smaller appliance dealers to obtain bulk rates.

The 75 employees currently working there will all keep their jobs via the leaseback agreement, according to the IDA, which granted 10 National Medford LLC – and managing member Jeffrey Feil, president and CEO of The Feil Organization – mortgage and recording tax exemptions on the $30 million purchase and an extension (through 2025) of an existing payment-in-lieu-of-taxes program.

It’s not the first time the Brookhaven IDA has helped out the denizens of 10 National Boulevard. The IDA assisted Intercounty Appliance Corp. with the 2014 expansion of a high-ceiling warehouse, after previously helping Intercounty build the warehouse in 2005.

There are good reasons why the IDA consistently fosters new developments at the large-scale appliance-distribution site, according to Braun, and not only that “the owners of the cooperative want to get out of the real estate business.”

“Intercounty has long been a good corporate citizen of Brookhaven,” the chairman said in a statement.