Bank OZK Lends $156M for Long Island Apartment Development

Multifamily developer Heatherwood has secured $156.3 million of construction financing to build a transit-oriented luxury apartment community on Long Island, Commercial Observer has learned.

Bank OZK (OZK) provided the nonrecourse construction loan for the planned 428-unit Heritage Westminster project in West Hempstead, N.Y. The development is slated for completion in 2026 steps from the West Hempstead Long Island Rail Road train station that connects Long Island to Manhattan. 

“This is the largest nonrecourse construction loan made by a single lender in suburban Long Island, N.Y., which opens up doors for more significant risk-sharing future developments in our towns and villages,” Russell Kadirov, chief financial officer at Heatherwood, said in a statement. “We thank Bank OZK for closing this deal in a record time, and we look forward to successful completion of this amazing transit-oriented development in West Hempstead.”

Walker & Dunlop arranged the transaction with a team led by Jonathan Schwartz, Aaron Appel, Keith Kurland, Adam Schwartz, Sean Reimer and Dustin Stolly.

Located at 111 Hempstead Turnpike, 25 miles from Midtown Manhattan, Heritage Westminster will consist of one-, two- and three-bedroom apartments along with townhome options. Community amenities will include a heated pool, a fitness center, multiple lounges, a craft room and a 2-acre courtyard.

“Bank OZK is excited to commence a relationship with Heatherwood, an outstanding developer with generations of experience and all the attributes that Bank OZK seeks in a sponsor,” Rich Smith, senior managing director of originations at Bank OZK, said in a statement. “We are grateful for the opportunity to participate in this remarkable transit-oriented project and look forward to further expanding our footprint in the region.” 

Andrew Coen can be reached at acoen@commercialobserver.com