LI firm sells HQ for $203m, leases back campus for 15-years.

Software giant, CA, the firm founded by the owner of the New York Islanders ice hockey team, Charles Wang, has completed a $203 million sale and leaseback of its Long Island headquarters complex in Islandia. At $262.50 psf, the sale rep resents one of the biggest ever on Long Island, and is bound to be welcomed by the company as it presses on with a major cost-trimming that will see 1,700 jobs slashed worldwide and a consolidation of office space.

However, the company has vowed to maintain its core presence on Long Island, signing a lease with the new owners for 15-years with an option to extend for 35.

"CA signed a long term lease for the Islandia facility and remains committed to Long Island. We continue to have a very large presence in Islandia with more than 2,000 employees," said the company in a statement.

"As we've stated before, CA is constantly evaluating its cost structure to ensure it is making the most effective investment decisions and delivering strong returns on invested capital. CA decided to move forward with the sale-leaseback of the Islandia facility as one of the many options in this arena.

"Leasing office space is standard business practice and frees up capital that can be used for other corporate purposes."

In documents filed with the U.S. Securities and Exchange Commission, CA reported that the property was sold to an investment group managed by CRIC Capital, LLC, a joint venture with Prudential Real Estate Investors, located in Boston, Mass. As part of the deal, CA will lease back the 60-acre campus at One CA Plaza for $1.2 million a month, according to the federal documents, with an annual increase of .78% through year 11 when the rent will be unchanged through the expiration of the initial term.

Charles Wang retired from CA, then known as Computer Associates, in 2002 amidst a $2 billion accounting scandal. On its path to recovery, the company has restructured its senior management and divested itself of "non-core profit lines."

It recently announced it would cut its worldwide workforce by 10% and consolidate its offices, bringing in savings estimated to be around $200 million.

CA also began the first phase of a $2 billion stock buyout this month using available cash and bank financing. It anticipates the buyout to be completed next year. The sale of its global headquarters marks a milestone on Long Island topping the previous record sale of EAB Plaza to Reckson Associates last year for $218 psf.

Jones Lang LaSalle's Washington, DC capital markets team, assisted by JLL's Manhattan capital markets team, worked with CA on the transaction.

EDITOR'S NOTE: Real Estate Weekly has been asked to clarify the designations of professionals involved in the recent 200,000 s/f lease signed by Akin Gump at the Durst Organization's Bank of America Tower. The Greenberg Traurig attorneys representing Akin Gump were led by Paul Alter, Esq. and included Keith Reich, Esq. and Barry Shimkin, Esq. Eric Berson of Washington Realty Group acted as the broker for Akin Gump, whose in-house negotiation team was led by Peter Miller, Esq. and included Vincent Bell and Gregory Williams. Attorneys representing the the landlord were Lawrence Lenzner, Esq. and Robert Safron, Esq. from Patterson Belknap Webb & Tyler. Business negotiations for Durst were handled by Tom Bow, senior vice president of The Durst Organization along with brokers Eric Engelhardt and Gary Rosenberg from Rosenberg & Estis P.C.