Ares Proposes Large Distribution Center in Yaphank

Ares Management proposed a 333,000-square-foot distribution center in Yaphank, its second major industrial development plan in Suffolk County in recent months.

A subsidiary of the Ares Industrial Real Estate Fund proposed the project for the intersection of Station and Horseblock roads in the Long Island community, Newsday reported. The $45 million project doesn’t have any tenants, but the site is expected to accommodate up to three.

The site is largely zoned for industrial use and does not need approval from the town board. One aspect that does need approval, however, is a special permit regarding the trucking part of the project. It’s unclear when the Brookhaven Town Planning Board intends to vote.

Some residents are already expressing concerns about the project, though. One resident fears the potential contamination of nearby drinking water wells, while another doesn’t think Station Road is wide enough to accommodate trucks, creating a dangerous situation for pedestrians.

The Suffolk County Water Authority hasn’t commented on the proposal, but previously opposed an auto storage yard planned for the same site, citing concern over water well contamination.

Ares has another massive industrial proposal in front of the Brookhaven town board. Last year, it proposed a 523,000-square-foot warehouse in Bellport; Brookhaven Town has yet to approve the project.

This isn’t the only industrial project planned for Yaphank, either. Wildflower and Barings are developing a property on Express Drive North at the largest industrial-zoned vacant site along the Long Island Expressway. Last month, Bank OZK provided a $72 million loan for the 72-acre, 550,000-square-foot property.

Similar to other regions, the Long Island industrial market surged during the early months of the pandemic. In the first quarter of this year, the availability rate was 4.6 percent, according to Colliers. The average asking rent was $16.15 per square foot.

— Holden Walter-Warner