Owners of vacated CA Technologies’ campus paid pennies on the dollar

Investors paid $24M for Islandia property in October 2021

Tri-State /
Jan.January 24, 2023 08:00 AM
Oxford Hospitality's Paul Amoruso and 1 Computer Associates Plaza in Islandia (Getty, Jones Lang LaSalle IP, Inc., Oxford Hospitality)

Oxford Hospitality’s Paul Amoruso and 1 Computer Associates Plaza in Islandia (Getty, Jones Lang LaSalle IP, Inc., Oxford Hospitality)

The sale price of a Long Island property is grim reminder of the sagging commercial real estate market, particularly for office campuses designed with one company in mind.

A group of investors and developers purchased CA Technologies’ former office park at 1 Computer Associates Plaza in Islandia for $24.1 million, Newsday reported. The transaction took place in October 2021, but the price had not been previously reported.

The price represents a staggering drop from when the 778,000-square-foot property last sold for $204.3 million 15 years earlier. At the time, the software company occupied the entire 65-acre campus.

The buyers last year included Paul Amoruso of Oxford Hospitality, Axonic Capital, Taconic Capital and Onyx Equities. The property has been vacant for years.

The 2021 purchase stemmed from a loan on the property, held by the new owners. The agreement between the sides helped avoid foreclosure for the Suffolk County site.

The loan was originally $165.6 million, but had been sold for $41.5 million, according to Trepp. That mirrors the drop in value of the office complex, which was once valued at $212 million. The company relocated its headquarters to Manhattan in 2014 and let its Islandia lease expire in 2021. Following CA’s departure and the pandemic, the dated property’s estimated worth dropped to $42.8 million.

The development reportedly cost $85 million and opened in 1992. Features include a heliport, day care center, pond, baseball field, basketball court and tennis courts.

Soon, it may not be an office park at all. While the owners don’t have to rush on a decision after negotiating down the debt, they have sought approval for 1.1 million square feet of warehouses, loading docks and tractor trailer parking.

The Village of Islandia is supportive of a potential transformation from office space to industrial, having changed the property’s zoning late last year. Officials would still need to approve site plans and issue permits.

“The village recognizes there is no market for office space for the foreseeable future,” Islandia Mayor Allan Dorman said in a statement. “This type of development will ensure the property remains in use and on the tax rolls.”

— Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    RXR's Scott Rechler (Getty)
    RXR to surrender chunk of office portfolio to lenders
    RXR to surrender chunk of office portfolio to lenders
    Investment Sales, Federal Reserve, Interest Rates, Real Estate Finance, Jay Powell
    What the Fed’s latest rate hike means for commercial real estate
    What the Fed’s latest rate hike means for commercial real estate
    (Photo Illustration by The Real Deal with Getty)
    Office attendance finally reaches 50%
    Office attendance finally reaches 50%
    (Illustration by The Real Deal with Getty)
    Signs of life for Hamptons, North Fork markets
    Signs of life for Hamptons, North Fork markets
    Vornado's Steve Roth with 1540 Broadway
    Vornado writes down portfolio by $600M
    Vornado writes down portfolio by $600M
    Boston Properties' Owen Thomas (Boston Properties, Getty)
    The commercial real estate recession is here: Boston Properties
    The commercial real estate recession is here: Boston Properties
    From left: Värde Partners’ IIfryn Carstairs and Hawkins Way Capital’s Ross Walker along with 525 Lexington (Getty, Värde Partners, Hawkins Way Capital, Google Maps)
    Hawkins Way, Värde buy defunct Marriott East Side hotel
    Hawkins Way, Värde buy defunct Marriott East Side hotel
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...