Tritec Finances Long Island Development
- Sep 16, 2021
Bay Shore Residences, a Long Island, N.Y., multifamily development, is closer to completion after developer TRITEC Real Estate Co. secured a combined $173 million in capitalization.
Working on behalf of the borrower, JLL Capital Markets arranged $113 million in construction financing. The four-year, floating-rate loan was originated by Truist Financial Corp. and Santander Bank. In addition, JLL secured $55 million in joint venture equity from institutional investors advised by J.P. Morgan Asset Management.
Located in the town of Islip, on the south shore of Long Island, Bay Shore Residences will comprise 418 units. BHC Architects was tapped to design the Class A multifamily community.
According to the developer’s website, the construction project is estimated to create around 900 jobs with $55 million in earnings and $140 million in sales. TRITEC also estimates that future residents will spend around $13 million annually in Islip.
The town of Islip approved the rezoning of the Bay Shore project in September 2020, according to a Patch article. Furthermore, in March of this year, The Islip Bulletin reported that Suffolk County authorities approved $2.5 million in funds for the development’s affordable component.
JLL Capital Markets’ Andrew Scandalios, Rob Hinckley, Jeffrey Julien and Nicco Lupo arranged the joint equity financing on behalf of TRITEC, while the construction loan was sourced by Michael Gigliotti, Geoff Goldstein, Kelly Gaines and Jackie Ferrer.
Bay Shore Residences will be developed in two phases from the ground up, on a 10.3-acre site located at 1700 Union Blvd. The property will feature a mix of studio, one-, two- and three-bedroom units—334 of which will be market-rate, while 84 will be workforce housing. Plans also call for 1,650 square feet of food-service retail and 629 parking spaces.
In-unit features include stone countertops, wood cabinets, vinyl wood flooring in living spaces, washers and dryers, storage space, tile floors for bathrooms and 9-foot ceiling height. Residents will also have access to 17,500 square feet of interior amenities, including a fitness center, clubrooms, lounges, a dog wash station, game room, as well as a business center. Outdoor amenities, totaling some 30,000 square feet, will include a swimming pool, barbecue stations, rooftop deck and fire pits.
Bay Shore Residences is located less than a mile from various shopping and dining venues on Main Street and within 2 miles of several schools and State Route 27 (Sunrise Highway). The Bay Shore train station is within walking distance of the property, providing quick access to Manhattan’s Penn Station.
Growing in Long Island
TRITEC has several multifamily projects in various stages of development in Long Island. According to Yardi Matrix, the company’s pipeline will add 1,139 units in several markets such as Ronkonkoma, Hauppauge and Lindenhurst, N.Y.—where a 260-unit property named The Wel is scheduled to come online later this year. Several units at The Wel are already preleased, Yardi Matrix data shows.
Additionally, TRITEC owns properties totaling 892 units in various Long Island markets, comprising developments completed in 2014, 2018 and 2020.
Demand for Class A multifamily product in Long Island is driven in part by young professionals and new families seeking a transition to a more suburban lifestyle, Scandalios said in prepared remarks.
According to Yardi Matrix data, there are 19 multifamily properties currently under construction in Long Island, totaling 3,172 units. Of these, five are fully affordable communities, seven are market-rate and seven are partially affordable. Long Island rents have increased 10.2 percent year-over-year in August, on par with the national growth rate of 10.3 percent.