Santander Bank lends $91 million for Long Island multi-family project – Business Observer
A joint venture between BRP companies and funds managed by BlackRock Alternative Investors have sealed $91 million in construction financing to build a new luxury multi-family asset on Long Island, Commercial Observer has learned.
Santander Bank provided the variable rate loan on the joint venture’s 292-unit garden-style apartment community called Farmingville Arboretum in Farmingville, NY, in Suffolk County, which is considered one of the tightest supply rental markets in the New York area.
JLL Capital Markets arranged the transaction with a team led by Rob Hinckley, Geoff Goldstein, Jeffrey Julien and Nicco Lupo.
When completed, the development will include 262 market value residences and 30 labor units.
“We are delighted to be delivering the Arboretum to Farmingville, which will provide a mix of beautifully appointed two and three bedroom residences for households choosing to rent, as well as a park in the town of Brookhaven and surrounding areas. .communities”, Steven Smithpartner at BRP Companies, said in a statement.
Located on a former agricultural site of 62 acres at 510 Horseblock Road, Arboretum in Farmingville will include both townhouses and single-family units. Amenities at the property will include a swimming pool, cabana, fitness center, yoga room, and fitness center. It will also include a 7-acre park with walking trails and picnic areas.
Suffolk County has a population of nearly 1.5 million, consisting mostly of single-family homes. JLL said the project will benefit from the dearth of Class A rental apartment options in the area, with a vacancy rate of just 2.6% and the property is located just 7 miles from Stony Brook University and Stony Brook Hospital.
“The Farmingville Arboretum will have powerful appeal given Long Island’s history as a largely suburban community with limited multi-unit apartment options for residents,” Hinckley said in a statement. “The property offers must-have apartments that will appeal to families and young professionals.”
JLL previously arranged both acquisition financing and equity for BRP Properties’ acquisition of the Farmingville site in April 2020.
Construction is expected to begin immediately at the Farmingville Arboretum and will take less than three years. The first units should be delivered in approximately 12 months.
Santander Bank officials did not immediately return a request for comment.
Andrew Coen can be reached at [email protected].