AION Partners originally bought the building located at 32 Leone Lane, Chester, New York in 2009. It was in default, included in a pool of distressed real estate along with properties in Florida, Georgia and North Carolina. After surveying the Orange County industrial real estate market, AION decided that creating commercial condominiums would be the best way to sell the building.
The 287,000-square-foot building in the Chester Industrial Park lent itself to a commercial condominium division. There are separate roofing systems for each partition. AION’s assessment was that they would gain appeal by having between 50,000 to 100,000 square feet availability. AION has leased out the other two spaces, but is looking to sell them as condos as well.
The building is the only commercial condominium that’s been created in Orange County in the past five years, according to documents from the New York State Attorney General’s Office, which must approve condominium projects.
Kevin O’Reilly, the Buyer, was represented by James Martin of McBride Corporate Real Estate and purchased the 92,446 square-foot commercial condominium for $2.9 Million. O’Reilly was looking for a new home for his Chester business, Satin Fine Foods, which makes fondant icing used on cakes and pastries. During his year-and-a-half search, he saw many buildings that were either 200,000 sf warehouses or smaller properties between 3,000 and 10,000 square feet, like the location his business had outgrown. O’Reilly moved into the condominium after investing $4.6 Million to build out the space to his specifications and buy equipment, giving his business room to expand. In a few months, he will launch a retail fondant to grocery stores.
This opportunity presented itself at just the right time for both parties.