MARKET INSIGHTS · LOCAL TRENDS · FUTURE OPPORTUNITIES
February marked a pivot from the local owner-user activity of January to high-stakes institutional acquisitions. While the broader market remains disciplined, this month proved that top-tier medical assets command premium pricing when strategic, long-term value is at stake.
Office & Medical Activity
Institutional demand took center stage with the $9.5 million off-market sale of 1728-1732 Sunrise Highway in Merrick.
North Village Realty brokered the deal to Northwell Health, which acquired the 17,714-square-foot facility (currently occupied by its affiliate, Orlin & Cohen Orthopedic Group) after a competitive bidding process.
The specifics of this transaction signal a robust appetite for well-positioned Long Island medical real estate:
Premium pricing: Approximately $536 per square foot including the rentable basement, and $693 per square foot for above-grade space.
Strategic acquisition: Northwell secured ownership with three years remaining on the lease, prioritizing operational stability and long-term facility control.
Market confidence: Northwell’s institutional credit and existing tenancy provided certainty in execution.
This transaction reinforces a clear trend: major healthcare providers are shifting from leasing to "generational thinking" regarding their footprint across the Island.
Retail Activity
Securing one of the market’s most sought-after tenants, Starbucks signed a 1,262 SF lease at "The Lisle," located at 99 Newbridge Road in Hicksville. This addition serves as a key retail anchor for the 236,000 SF project, which integrates 7,700 SF of prime commercial space with 189 mixed-income residential units.
Industrial & Logistics Update
The transformation of the former Grumman aerospace campus into a modern logistics hub reached another milestone this month. Steel Equities, owner of 999 S. Oyster Bay Road in Bethpage, secured a 50,000 SF lease with an institutional-grade tenant. This activity underscores the resilient demand for high-utility space along the South Shore border.
Land Development Activity
In a notable example of creative land positioning, D&F Development Group has secured $12.3 million in state funding for a new senior housing initiative in Freeport. The project, situated at the corner of Broadway and Rosedale Avenue, transforms a former church parking lot into a five-story, 80-unit residential complex.
This development highlights a critical trend for Long Island property owners: the conversion of underutilized land into high-density affordable housing. With 79 units designated for seniors earning up to 70% of the area median income.
Multifamily Momentum
Following last month’s $33.4M acquisition in Valley Stream, Fairfield Properties has further expanded its regional footprint with the $36M purchase of "Cornerstone at Yorkshire" in Lynbrook. Located at 5 Freer Street—the site of the former Capri Motel—this 80-unit luxury asset sits in a high-visibility pocket just behind Sunrise Highway.
The pricing of this transaction offers a candid look at the current market: while the asset previously traded for $42.85M in late 2022, this latest move reflects the broader repricing driven by the current interest rate environment. More importantly, it demonstrates the advantage held by well-capitalized local players. By stepping in where others face refinancing hurdles, Fairfield continues to consolidate the South Shore’s premier multifamily stock, betting on the long-term rental demand that defines our local submarkets.
February Market Outlook
As we move through Q1, the Long Island landscape is being shaped by institutional players making bold, strategic acquisitions. While large-scale capital is deploying aggressively, the broader market remains disciplined, prioritizing assets with proven durability and operational control over speculative plays.
Current activity is defined by three key trends:
• Institutional Multifamily Momentum: Persistent housing demand and limited supply continue to make the multifamily sector a top priority for regional powerhouses.
• Strategic Owner-User Demand: In the medical and industrial sectors, buyers are moving with intent to secure long-term occupancy and hedge against future cost volatility.
• Resilient Retail Corridors: Leasing remains robust for established service and convenience-driven tenants along the Island’s most proven transit paths.
Thinking About a Sale?
North Village Realty specializes in representing commercial property owners on Long Island’s South Shore. If you are weighing a sale in the next year or two, the conversation is worth having early.
Request a Property Review ↗ Call (516) 255-4300
February 2026 newsletter archive. Property availability, development plans, and market conditions reflect this edition and may have changed.