The Real Deal New York

Long Island Cheat Sheet: Developer iStar’s Long Beach apartment block battle continues; construction jobs rise … & more

By Aidan Gardiner | December 31, 2018 05:30PM

Clockwise from top left: Developer gets $28M to build a Hicksville warehouse, Riverhead seeks new development for a depressed downtown area, a Nassau judge blocks a developer’s proposed pair of Long Beach apartment towers, and construction employment rose across Long Island in 2018.

Nassau judge blocks developer’s proposed Long Beach apartment towers
Developer iStar Financial’s bid to reverse a revocation of its permit to build two oceanfront 15-story luxury apartment towers by the Long Beach Zoning Board of Appeals was rejected by Nassau County Supreme Court Judge Stephen Bucaria, Newsday reported. Bucaria ruled on Dec. 13 that developers did not get the necessary building permits for the so-called Superblock project. The $350 million plan would bring 522 apartments and 11,000 square feet of retail space to Long Beach, a coastal city on the South Shore of Long Island. An appeal could still be filed by the developers, known as Shore Road LLC, with the New York State Appellate Division. In May, iStar filed a lawsuit against Long Beach, claiming that the city cost it $100 million in revenue and violated an agreement by not supporting its application for tax breaks from Nassau County. A second lawsuit against Long Beach was filed by iStar a month later. [Newsday]

Long Island construction employment rose over the past year
Nassau and Suffolk counties gained about 6,800 construction jobs between November 2017 and November 2018, according to the Associated General Contractors of America. That roughly 8 percent increase brings the total number of people employed in construction in both counties up to 88,600. The nearby New York City region saw a 4 percent rise in construction employment, gaining about 5,700 jobs over the past year. The Orange-Rockland-Westchester area saw slower growth with only a 1 percent increase from 200 more construction jobs during the same period, according to the AGC. The Arlington, Virginia-based trade association found that across the country, construction employment expanded in 265 metropolitan areas (with Phoenix, Dallas and Orlando being the strongest markets for job growth), declined in 45 and stayed the same in 48 others over the past year. [LIBN]

Riverhead wants new development to revitalize depressed downtown area
A $25,000 grant from the New York State Regional Economic Development Council to Riverhead will be used by the municipality to study its downtown area and plan a more transit-oriented development near the town’s Long Island Rail Road station, Newsday reported. Riverhead officials want to redevelop the area, which they view as economically depressed, and attract new residents. Local officials hope to achieve those goals by creating more parking, retail and housing. The state has yet to officially release the funds to Riverhead, but once it does, the town will hire design professionals to produce a study that could take up to a year to complete. [Newsday]

Developer gets $28M to build Hicksville warehouse
Lincoln Equities Group got $28 million in financing to build a 195,610-square-foot warehouse and distribution facility in Hicksville, Long Island Business News reported. The New Jersey-based developer bought the nine-acre property from Winter Bros. Waste Systems for about $9 million. The facility will have ceilings up to 50 feet high and 30 loading docks. The financing was provided by the Heitman Capital Management. John Alascio, Noble Carpenter III and Sridhar Vankayala of Cushman & Wakefield’s equity, debt and structured finance team arranged for the loan, while Cushman & Wakefield’s David Pennetta and Robert Stricoff represented Winter Bros. in its sale of the property, which is next to the Long Island Rail Road and easily accessible to LaGuardia Airport and John F. Kennedy International Airport. Jones Lang LaSalle’s Tom DiMicelli is the leasing agent for the building. He told LIBN that the asking rent is $17 per square foot for a triple-net lease. [LIBN]

Old Westbury synagogue gets $5M in financing while pitching expansion
Cronheim Mortgage arranged $5 million in financing for the Old Westbury Hebrew Congregation synagogue. The 15.7-acre property is home to a sanctuary, offices, classrooms and kosher catering business Ram Caterers, which can host events with up to 750 guests. The property’s main building was built in 1959, but expanded in 2007. The synagogue plans to build a new catering space that will be designed by architect Alfred Sutton, according to The Island Now. The space will have “an outdoorsy feel,” but be fully enclosed by sound deadening materials such as Thermopane glass and Uniflex fabric. Sutton presented his plans to the Old Westbury Board of Trustees. The village’s Planning and Architectural Review boards still need to review the proposal, Old Westbury Mayor Fred Carillo told the outlet. [The Island Now]