24 Hour Local Real Estate News

Lease Renewal Continues 35-Year Relationship

MELVILE, NY—Diagnostic imaging firm Fonar Corp., which has leased space with Rechler Equity Partners for 35 years, has decided the relationship will continue for at least another 11 years.

The developer and manufacturer of MRI scanners signed an 11-year lease renewal with Rechler Equity Partners for 78,240 square feet of office space at the 110 Marcus Drive building in Melville. Fonar is the sole tenant at the building. The company houses research, fabrication, manufacturing, and warehouse operations, along with a diagnostic imaging center, as well as an office component at the building.

Fonar, which introduced the world’s first commercial MRI scanner in 1980, moved into the 110 Marcus Drive building around that time, according to Rechler Equity.

Rechler Equity Partners director of acquisitions & leasing Ted Trias negotiated the lease renewal on behalf of the company. Howard Nemshin, a partner at Atlantic Property Services, LLC, represented Fonar in the transaction.

“We have been honored to count Fonar as a tenant at 110 Marcus Drive for 35 years and are thrilled that this major employer will remain on Long Island and with Rechler Equity Partners for at least another 11 years,” says Mitchell Rechler, managing partner, Rechler Equity Partners.

Fonar had been mulling a possible relocation from the property due to tax burdens but was able to remain at the Rechler Equity property after the Suffolk County Industrial Development Agency granted the company property tax incentives for the next 10 years.

As part of the lease renewal deal, Rechler Equity Partners says it will oversee a series of “significant capital improvements” to the property.

In late September, Rechler announced it had secured the first lease at the Hampton Business District in Westhampton Beach, NY. AC Lighting & Electric Supply is expanding its operations to a sixth Long Island location in a 9,140-square-foot space at 220 Roger’s Way, a 60,000-square-foot showroom and distribution building. The Hamptons Business District is a planned nine-building complex totaling 440,000 square feet that broke ground earlier this year.

Copyright 2018. ALM Media Properties, LLC. All rights reserved.