The Corridor Journal of Strategic Alliances Building Arts & Real Property | Page 12

The Corridor’s Fourth Real Property Forum was held at
the Cold Spring Harbor Library on March 5, 2014. Billed
as a “working lunch” we were joined by our panelists, Eric
Alexander, Vision Long Island; David Pennetta, Cushman
Wakefield of Long Island; Mitch Pally, Long Island Builder’s
Institute; David Leno, Ruskin Moscou Faltischek P.C.; Andrew
Saluk, NEFCU, and a participating audience comprised of a
wide array of investors, attorneys, brokers, realtors, activists
and CEO’s. Between us, we discussed some of the most
pressing issues in commercial real estate today, and everyone
had something to say.
The conversation was, as promised very lively and passionate,

also has extended this recession, depression, whatever we’re
calling it. Prices are lower than they were in ‘07 so you can get
a better location. When economy tanks there is flight from A
Class to B, but since fourth quarter of ’13, now that prices are
dramatically better they are jumping back in to bigger, better
locations to take advantage of low rates.” From the corporate
side, Lake Success and Jericho Markets took a big hit. Canon
and CMP Publications moved out of Lake Success, similarly
to how Melville got hit in the ‘90s, but in Huntington-Melville
got the benefit of Canon moving in and the new jobs.
“The biggest driver is health care. People think North ShoreLIJ is the biggest employer but it’s not, it’s ProHEALTH™.

David Leno, David Pennetta, Andrew Saluk, Barbara Kent, Eric Alexander, Vivian Leber, Mitchell Pally, at The Corridor Real Property Forum

often very funny. While that might not be evident textually,
I strongly suggest that you visit us online. What follows is a
largely paraphrased, very brief synopsis of the Forum itself.
Please go to www.theCorridorLI.com for a more thorough
understanding of the proceedings.
While the allied real estate industries differentiate between
“commercial”, “residential” and “municipal” development,
the reality is that those markets have begun to conjoin as Long
Island’s unique micro-society evolves. We really aren’t like
anyone else.
Commercial: The pervasive energy is always “How’s
Business?” “How are we doing?”
Our first speaker, David Pennetta’s response was positive, as is
the general consensus among industry experts. “We’ve gotten
past the ‘Lend and pretend’ where loans were coming due and
were not able to be refinanced the way they were previously.
The Federal Government tried to help as well, but not the way
they had in the 90’s…when their first line of defense was to
foreclose, and lenders took back properties.” David explained
that there was a bigger drop in the earlier recession but we got
over it more quickly that time. “One of my properties was
caught up in the 2007 drop. We were paying mortgage taxes
and it was cash flowing but the mortgage came due and under
the new metrics, with reserves needed, it wasn’t something that
we could continue. But the lending institution extended us for
18 months and that gave us time to pay off the note, refinance,
find a new tenant and the situation has been stable ever since.”
He added that while the refinances have been successful “it
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“Retail has rebounded nicely! Long Island has done very well
in comparison to the metro region. Because it’s so hard to get
things approved here…a long and arduous process, we didn’t
have a lot of new building that had to be absorbed during the
downturn… so that has helped us. Nassau County had tough
time with Real Estate and taxes. Rents haven’t gone up but
taxes have--In Plainview, commercial rents are $6.00 a square
foot but taxes are $4.00 a square foot, so the building owner
is making $2.00 a square foot. Portfolio diversification is
keeping the returns tight.” David credits the changes to the
aggressive Industrial Development Agencies and NY State
Governor, Andrew Cuomo. “We’ve seen a big focus on Transit
Oriented Development and the development of downtowns.”
Transit Oriented Development: There is a long lis و