The Real Deal New York

Hempstead IDA grants incentives for 172-unit Island Park apartment project

February 25, 2019 12:14PM

Hempstead’s Industrial Development Agency voted to give economic incentives to a proposed 172-unit waterfront rental apartment complex slated for Island Park, LIBN reported. AvalonBay Communities, a Virginia-based real estate investment trust that has been an active developer on Long Island, plans to redevelop the 11.6-acre site. Farmingdale-based Posillico bought the land, a former oil facility, in a bankruptcy auction for $2.4 million in 1999. The company wanted to build condos on the site and even received approvals from Hempstead in 2008, but then halted the project due to the onset of the global financial crisis shortly thereafter. Posillico partnered with AvalonBay in 2012, changing the plan to instead build 140 rental apartments and 32 condos. Hempstead shot down that proposal a year later, only to have the New York State Supreme Court reverse the town’s decision in a 2015 ruling. AvalonBay went into contract to buy the land last year, although Posillico will need to start cleaning up the site this year, a process that must be completed before any construction can proceed. [LIBN]