NEW YORK, NY — JLL Capital Markets announced today that it has arranged debt and equity financing for Arboretum, a to-be-built, 292-unit, garden-style rental community located in Farmingville, New York, one of the most supply constrained apartment markets on Long Island.
JLL worked on behalf of the borrower, a joint venture between BRP Companies and funds and accounts managed by BlackRock Alternative Investors, to secure a $91 million floating-rate construction loan through Santander Bank. In addition, JLL also advised on the equity investment portion of the capitalization stack.
Situated on a 62-acre former farm site at 510 Horseblock Rd., Arboretum at Farmingville will feature 292 two- and three-bedroom flat, loft, townhome and single-family home units. The luxury garden-style community will also have state-of-the-art amenities that will include a resort pool and cabana area, fitness center, yoga room and fitness on-demand room. The community will also contain a seven-acre park with walking trails and picnic areas for use by Arboretum and area residents. The development will consist of 262 fair-market residences and 30 workforce units.
Suffolk County is home to nearly 1.5-million people and a preponderance of single-family homes. With a dearth of Class A rental apartments and a 2.5 percent vacancy rate, Arboretum at Farmingville will appeal to families and working professionals, many of whom are employed by the multiple healthcare providers and facilities in the area. There are 26 hospitals and medical facilities in Long Island with over 50,000 employees.
Located less than seven miles from Stony Brook University and Hospital, the Arboretum at Farmingville site underwent an eight-year entitlement process as part of a wider community effort to revitalize the downtown with new housing as well as community spaces, recreational opportunities, attractive streetscapes and planned development.
The JLL debt and equity advisory team representing the sponsor was led by Senior Managing Director Rob Hinckley, Managing Director Geoff Goldstein, along with Senior Managing Directors Jeffrey Julien and Director Nicco Lupo.
“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,” said Hinckley. “The property provides much-needed apartments that will appeal to families and young professionals, with the rich amenities and large unit floor plans that include over 50 single-family rentals.”
Construction is scheduled to commence at Arboretum at Farmingville immediately and take just less than three years to complete, with the first units being delivered in about 12 months.
“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 amenity to the Town of Brookhaven and surrounding communities,” said Steven C. Smith, Partner at BRP Companies. “We look forward to continuing our work in bringing this project to fruition alongside all project partners involved as we look ahead to the commencement of construction.”
JLL Capital Markets previously arranged both the acquisition financing and equity for BRP Properties’ acquisition of the Farmingville site in April 2020.
