Computer Associates Seeking $195 Million Sale Leaseback of Long island HQ

Long Island Business News - March 31, 2006

CA, until recently known as Computer Associates, has placed their headquarters on the market with plans to lease back the site for 15 years with a 10-year renewal option, followed by two five-year options. The property has three buildings totalling 778,000 square feet. The move would infuse the company with cash while letting it remain at the 14-year-old, 60-acre corporate headquarters located off Exit 58 of the Long Island Expressway.

In a statement, CA said it “is exploring the sale/leaseback of the Islandia facility and a number of locations throughout the world,” adding that leasing “office space is standard business practice and frees up capital that can be used to invest in the business.” The company has more than 2,000 employees in Islandia.

CA didn’t stipulate how much it would like to pay in rent, but industry sources estimate it will be slightly below market rates, which averaged $20.25 per foot. The asking price of $250 per square foot is steep, but partially attributable to the site’s potential for additional development. In 1990, Islandia approved a total of 1.48 million square feet to be built in three phases on the main campus. An approved second phase that included a four-story office building and a cafeteria/training center never got off the ground. While CA can’t guarantee the development would be allowed now, Pennetta pointed out that Islandia is business friendly.

The building is being marketed by Jones Lang LaSalle Americas Inc. Sphere: Related Content