A long-stalled project in Suffolk County is ready to get going after the developers scored a $91 million construction loan for a 292-unit rental complex.
Manhattan-based BRP Companies and funds managed by BlackRock Alternative Investors landed the loan from Santander Bank, the Commercial Observer reported. The floating-rate loan will allow work on the Arboretum at Farmingville to begin immediately.
The development includes 262 market-rate units, along with 30 workforce housing units. The project at 510 Horseblock Road — the former site of a 62-acre farm — will include both townhomes and single-family units. Steven Smith, partner at BRP, told the outlet two- and three-bedroom residences were part of the project.
A JLL Capital Markets team including Rob Hinckley and Geoff Goldstein arranged the loan, the Observer reported.
The property is seven miles from Stony Brook University and Stony Brook Hospital, providing residents easy access to several major employers. Amenities at the Arboretum include a pool, cabana area, fitness center, yoga room and a seven-acre park with walking trails.
In 2019, the Brookhaven Town Planning Board voted unanimously to approve a site plan for the development, which hit a snag after the Kelly Development Group turned its attention towards another complex. Kelly initially planned to sell the units, before shifting to a rental strategy.
BRP acquired the development in April 2020, according to the Observer. Construction is expected to take less than three years and the first units are expected to be delivered in about one year.
BRP recently landed another sizable loan in the tri-state area, enabling the start of construction for a mixed-use project in New Rochelle. BRP scored $294 million in construction financing for its project at 500 Main Street, which will deliver 477 housing units, approximately 25 percent of which will be set aside for affordable housing.
Financing for the project was led by a $200 million loan procured through bonds issued by New York State Homes and Community Renewal.
[CO] — Holden Walter-Warner