An 86-unit luxury rental development in Commack has started welcoming tenants, providing an additional housing option for adults 55 and over who want to sell their homes but stay on Long Island.

Apartments in Sutton Landing at Commack range from about 1,200 to nearly 1,900 square feet and have private one-car garages. Asking rents for the two-bedroom units range from $4,500 to $5,700.

The $60 million development’s location is a selling point, said Steven Krieger, CEO of B2K Development. It is across from The Hamlet Golf & Country Club and near other senior housing and the Suffolk Y JCC, he said.

It's also down the block from the Gurwin Jewish Nursing and Rehabilitation Center. 

Sutton Landing has amenities including a clubhouse with a card room and a sports bar as well as a fitness center and an outdoor pool.

Krieger said Sutton Landing is almost 40% leased after a month. He said 55-and-older communities are attractive to local homeowners who no longer want to be responsible for keeping up with landscaping, snow removal and home repairs.

“The velocity of the leasing really proves out the fact that many people in the Town of Huntington that are 55 and better, who created the neighborhoods that we all live in, want to stay in those neighborhoods,” he said. “But they want to downsize and they want to be able to lock the door and leave and not worry about maintaining their homes.”

Rising land and construction costs have pushed up rents on Long Island, Krieger said.

Local builders recently told Newsday construction insurance is one fast-growing factor driving up rents. Krieger said the cost of insurance for the developer has increased 30% in the past year.

Affordable units

Twelve of the two-bedroom units were set aside as affordable with a rent of $1,787 as part of an agreement to receive tax benefits from the Suffolk County Industrial Development Agency. Town of Huntington Community Development Agency ran a housing lottery through Oct. 3 to award the units and gave first priority to volunteer firefighters and EMTs. Second priority was given to town residents, local workers and family members of town residents. 

B2K agreed to pay $400,000 into Huntington’s Affordable Housing Trust and Agency fund in lieu of offering several additional units at affordable rents.

Last year, the IDA granted the developer a 15-year payment in lieu of taxes agreement with $7.1 million in tax benefits. That included a $1.8 million sales-tax exemption on the purchase of construction materials and furnishings; up to $346,740 off mortgage recording taxes; and a $4.9 million property tax savings over 15 years.

“A variety of housing choices is really an economic development imperative in our region,” Kelly Murphy, executive director and CEO at the Suffolk IDA, said Tuesday. “We hear from our CEOs on a constant basis that the No. 1 challenge they have is retaining a highly skilled workforce due to the lack of a variety of housing choices.”

Murphy noted that the site will generate $7.1 million in payments in lieu of taxes, which is an increase of $4.8 million, compared with the projected taxes for the site without the project.

Hunter Gross, vice president of the Huntington Township Housing Coalition, said he is glad to see new housing in the area but was frustrated with the limited number of affordable units and the age restrictions.

“Young professionals and families of Huntington continue to leave in droves because there are no affordable units of housing and not enough market-rate options,” he said.

Krieger said that in some areas of Long Island, age-restricted housing is all that can get approved by local government officials. But the developer is interested in building housing for all ages.

“In some municipalities, certain locations, certain school districts, you get some pushback and that’s the only thing that can get approved,” he said. “We know there’s a need for both. There’s a huge need on Long Island for non-age-restricted rental housing.”

B2K Development is one of the area’s most prolific developers. It has built more than 5,000 homes over the past 20 years, according to the company. Other major projects include The Boardwalk condos and The Breeze apartments in Long Beach, and The Bristal assisted living facilities.

B2K operates other Sutton Landing over-55 communities, including a 194-unit complex in Uniondale, and is now leasing a 139-unit development under that brand in East Patchogue.

Last year, Fairfield Properties, the Island’s largest landlord, acquired two Sutton Landing-branded developments from B2K in Deer Park and Mount Sinai with 425 rental units for a combined $208 million. Those properties are now known as Fairfield Knolls. 

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.