Santander Bank Lends $91M on Long Island Multifamily Project
A joint venture between BRP Companies and funds managed by BlackRock Alternative Investors have sealed $91 million of construction financing to build a new luxury multifamily asset on Long Island, Commercial Observer has learned.
Santander Bank supplied the floating-rate loan on the JV’s planned 292-unit, garden-style apartment community called Arboretum at Farmingville in Farmingville, N.Y. in Suffolk County, which is considered one of the most supply-constrained rental markets in the New York City region.
When completed, the development will comprise 262 market-value residences and 30 workforce units.
“We’re thrilled to be in the process of delivering the Arboretum at Farmingville, which will provide a mix of beautifully appointed two- and three-bedroom residences for households choosing to rent, as well as a park to the town of Brookhaven and surrounding communities,” Steven Smith, partner at BRP Companies, said in a statement.
Located on a 62-acre former farm site at 510 Horseblock Road, Arboretum at Farmingville will consist of both townhomes and single-family units. The property’s amenities will include pool, cabana area, fitness center, yoga room and fitness center. It will also feature a 7-acre park with walking trails and picnic areas.
Suffolk County has a population of nearly 1.5 million comprising mainly single-family homes. JLL said the project will benefit from the area having a dearth of Class A rental apartment options with just a 2.6 percent vacancy rate coupled with the property being located just 7 miles from Stony Brook University and Stony Brook Hospital.
“Arboretum at Farmingville will have powerful appeal given Long Island’s history as a largely suburban community with limited multi-housing apartment options for residents,” Hinckley said in a statement. “The property provides much-needed apartments that will appeal to families and young professionals.”
JLL previously arranged both the acquisition financing and equity for BRP Properties’ acquisition of the Farmingville site in April 2020.
Construction is scheduled to commence at the Arboretum at Farmingville immediately and will take less than three years to complete. The first units are slated to be delivered in about 12 months.
Santander Bank declined to comment.
Andrew Coen can be reached at email@example.com.