Long Island Senior Housing Project Lands $50M
Currently under construction, the property will also include affordable units.
The Northwind Group has obtained $50 million in construction financing for The Preserve at Smithtown, a 180-unit senior housing development in Nesconset, N.Y. Upon its completion, the age-restricted property—catering to adults 55 and older—will also include 27 affordable apartments.
Northmarq arranged the financing through a life insurance company. The package comprised an initial $35 million loan, $5 million for construction draws and an extra $10 million cash-out once the project stabilized.
Senior Director Chuck Cotsalas and Managing Director Ernest DesRochers secured the 10-year fixed-rate financing set 200 basis points above the 10-year U.S. Treasury rate, with 2 years of interest-only payments and a 30-year amortization plan. All funds, including the $10 million earn-out proceeds, were locked in at the time of closing.
The Preserve at Smithtown, up close
Northwind broke ground on the community in 2020. Maxim Capital Group provided a $39.5 million construction loan later on, in 2022, according to Yardi Matrix data. Currently under construction, the development is currently roughly 50 percent complete.
The garden-style multifamily development is set to incorporate 18 buildings with one- and two-bedroom floorplans ranging between 690 and 1,348 square feet. Amenities are set to include a fitness center, a swimming pool, a pickleball court, a clubhouse, lounge areas, a pet park, walking trails, controlled access and approximately 260 parking spaces. Units will feature washers and dryers, stainless steel appliances, walk-in closets and fireplaces.
Located at 297 Smithtown Blvd., the 23-acre development site is within Long Island’s Smithtown submarket. The property is near Interstate 495, which allows easy access to the New York City metropolitan area.
