New owners take over former CA head office in Islandia

Two private equity firms partnered with an owner from New Jersey and a developer from Long Island to acquire CA’s former headquarters in Islandia.

Axonic Capital, Taconic Capital Advisors, Onyx Equities and Paul Amoruso of Oxford and Simpson, based in Jericho, are the new owners of the 76-acre campus at One CA Plaza, which includes three main office buildings totaling over 800,000 square feet. .

Once one of Long Island’s largest and fastest growing corporate headquarters, the Islandia property is now completely vacant. As first reported by LIBN last month, the new owners bought the $ 165.6 million Commercial Mortgage Backed Securities (CMBS) note that former principal owner Jay Johnson had guaranteed on the Islandia asset and they took possession of it after negotiating with the borrower on a mutually agreed upon agreement. “friendly” foreclosure.

The CMBS loan was initiated when Johnson’s real estate entity, Islandia Operators Holdings LLC, purchased the property from the software giant for $ 204.3 million as part of a sale-leaseback agreement in 2006.

CA signed a 15-year lease with an option to renew for up to an additional 35 years. But in recent years, the company has started moving much of its staff to Manhattan and other locations and has retained back office staff at the Islandia site.

In 2018, Broadcom acquired CA for $ 18.9 billion, which resulted in layoffs and further reduced CA’s presence at Islandia. As a result, CA recently moved its last employees from Long Island to 100 Bayliss Road in Melville, where it leases approximately 40,000 square feet.

With little need for a sprawling office complex here, CA decided not to exercise its lease renewal options at Islandia and its lease for the property expired in August. In an attempt to offset a portion of its $ 1.26 million monthly rent on the property, CA sublet more than 130,000 square feet to other tenants, all of whom have since moved out.

Since the property was vacant and produced no income, the latest Islandia office campus appraisal, which was done a year ago, was $ 42.8 million and real estate sources claim that the new owners paid around $ 28 million to acquire the note. and subsequently take possession of the property.

The new property group intends to work closely with the village of Islandia to develop a master plan for a possible mixed-use redevelopment of the property.

“The repositioning of the CA Plaza site is the most significant opportunity in commercial real estate on Long Island,” said Matthew Weinstein, partner and head of commercial real estate at Axonic Capital, in a company statement. “We are delighted to revive the property as a high performing contributor to the Suffolk County economy and source of employment in the village of Islandia.”

For Amoruso, the acquisition completes its involvement in the real estate loop. As a 20-something real estate broker in 1989, Amoruso sold the original 63 acres to Islandia for $ 34.65 million to a joint venture between related Manhattan companies and Computer Associates, which built the CA headquarters in 1991.

“Having originally assembled the Computer Associates site 32 years ago, I saw how important a property can be to an entire region – and its reuse is an even more important moment today. grande, ”Amoruso, one of Long Island’s leading commercial real estate advisers. and developer, said. “There has never been a better time to bring a substantial opportunity to the Long Island market.”

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