The Crest Group to Build Senior Townhomes on Long Island
The community makes use of a tax abatement that allows for some units to be designated as affordable.
The Crest Group has obtained a $24 million construction loan for The Villas at Oak Run, a 74-unit mixed-income townhome-style community intended for the 55+ demographic. The development is taking shape on 23.56 acres at the Northeast Corner of Birchwood Park Drive and Middle Country Road in Middle Island, NY.
Kearny Bank provided the 2-year balance sheet construction loan for The Villas at a 70 percent loan-to-cost ratio. It includes pari passu equity and a debt funding arrangement. Bryan Manz and Emil DePasquale of Black Bear Capital Partners advised the project, which will cost an estimated $35 million to build. The community is expected to open in 2027.
The Villas at Oak Run offer tax abatement incentives in support of Brookhaven’s broader affordable housing initiative. Twenty percent of its units are designated as either town or county affordable at $2,280 per month. The remaining 80 percent market-rate rent is $3,650/month.
At completion, The Villas will feature 37 duplex buildings with two-bedroom, two-bath units totaling 93,138 rentable square feet. All homes also include one-car garages. An indoor fitness center, pickleball courts, walking path as well and recreational area will be among the shared amenities.
Townhome trials
Townhomes are piquing the interest of many developers in the BTR space, as the designs combine elements of single-family homes and traditional apartments. According to data from Cotality, the attached single-family rental properties experienced a 2.6 percent growth in rents, the highest sector-wide.
READ ALSO: What Does the New Wave of BTR Homes Look Like? Here’s Crescent’s View
Last month, Toro Development Company announced that it would develop 133 luxury, full-brick townhomes at Medley, a 43-acre mixed-use site in Johns Creek, Ga., located roughly 29 miles northeast of downtown Atlanta.
In June, Wood Partners debuted Alta Wildhorse Ranch in Austin, a luxury townhouse community off US Highway 290 and Texas SH-130.
