The Crest Group has landed a $24 million construction loan for its new 55-and-over rental development in Middle Island.
The new community called The Villas at Oak Run will bring 74 two-bedroom townhomes to a 23.5-acre site at the northeast corner of Birchwood Park Drive and Middle Country Road.
Basking Ridge, N.J.-based Black Bear Capital Partners (BBCP), a real estate financial advisory firm and subsidiary of Black Bear Asset Management (BBAM), arranged the financing. Kearny Bank provided a two-year balance sheet construction loan at 70 percent LTC/LTV to The Crest Group.
The Villas at Oak Run will have 37 duplex buildings with two-bedroom, two-bath units totaling 93,138 square feet. Each apartment at the new community will come with a one-car garage, with amenities that include an indoor fitness center, half-mile walking path and an outdoor recreational area with pickleball courts.
The $35 million Middle Island project received economic incentives from the Brookhaven Industrial Development Agency. Eight units will be designated as affordable and reserved for renters earning up to 80 percent of the area median income and seven units designated as workforce housing will be leased to renters earning up to 120 percent of the AMI. Monthly rents for the market-rate apartments are projected to be $3,648, with workforce units at $2,286, according to IDA documents.
Bryan Manz and Emil DePasquale of BBCP arranged the $24 million financing package.
“We’re proud to help bring this thoughtfully designed community to life and support the Town of Brookhaven’s mission to expand affordable housing options for seniors,” DePasquale said in a company statement.
BBAM/BBCP, which services transactions across all property types, reports it closed numerous refinance packages in excess of $1 billion in 2024 despite “challenging market conditions.” BBCP, which has offices in New York, New Jersey, Chicago and Tampa, Fla., also has another $750 million currently in the pipeline.
According to its statement, BBCP said The Crest Group “has demonstrated a strong track record of identifying and acquiring high-potential development sites,” consistently delivering well-executed projects across multiple asset classes. Its construction financing for the Middle Island project allows its latest development to move forward.
“BBCP secured favorable terms with Kearny Bank in today’s challenging capital markets, demonstrating the strength of our development plan and the growing demand for quality 55+ housing options in Suffolk County,” Daniel Scarda, director of Corporate Finance for The Crest Group, said in the statement. “It was a pleasure working with the BBAM team to get this transaction closed and we are eager to deliver additional high-quality development projects across our portfolio.”
The Middle Island development is expected to take from 18 to 22 months to complete.