The Arboretum in Farmingville marks opening of 292 rental units
A 292-unit housing development was official opened in Farmingville on Thursday. Credit: Rick Kopstein
Elected officials, community members and developers marked the opening of the 292-unit Arboretum in Farmingville on Thursday, which offers a mix of apartments, townhomes and detached single-family houses for rent.
The $150 million development, which is more than a decade in the making, is built on 62 acres off Horseblock Road that was formerly a farm and nursery. It includes 7-acre public park.
“This is a transformative development that's going to change Farmingville,” Michael Kelly, president of Stony Brook-based Kelly Development, said at the event on Thursday. Kelly is a former member of the Suffolk County Planning Commission and former board member of the Brookhaven IDA.
Kelly, as developer, first bought the property in 2010, he said. After an initial plan for condos was scrapped and Kelly's development partner Michael McHugh died in 2018, he sold the property to Manhattan-based BRP Companies.
Rents start at $3,650 a month for a 1,400-square-foot, two-bedroom, two-bath apartment and rise to $5,400 for a 2,300-square-foot, three-bedroom single-family detached house, according to the Arboretum's website. Some of the units include bonus space that could be used as an office.
The development will appeal to downsizers and people faced with few options for larger rental homes on Long Island, said Zach Schwanbeck, director at BRP.
“If people are moving to the area, they may not want to buy right away,” he said. “This is a good opportunity because you can lease a townhouse or an entire single-family house.”
Asked about the pricing, Schwanbeck acknowledged the limited supply of housing on Long Island.
“We work with experts and the latest market data, and we understand that's where the market is at right now.”
At this point, about 130 units are ready for occupancy, and around 40 are occupied. The first tenants arrived in February. Amenities include a pool, fitness center and coworking area as well as plans for tennis and pickleball courts and a putting green. The development is pet-friendly.
Kelly continues to develop 24,000 square feet of commercial space at the entrance of the site, which will include a restaurant and office space, he said.
Brookhaven Town Supervisor Dan Panico commended the design of the community, which has houses with backyards along its perimeter, bordering single-family neighborhoods, and multifamily housing in the middle.
“It shows that you can build housing in communities that conforms with the character of the existing community and make it work,” he said.
Panico told Newsday that while other towns around Long Island talk about building housing, it is actually happening in Brookhaven.
Marisa Pizza, board member of the Farmingville Historical Society, praised the developers for preserving Hanrahan Firehouse, a historic building on the property, which the group feared would be leveled in the process.
Brookhaven Town Clerk Kevin LaValle, who previously represented the area in the Brookhaven Town Council, called the project “the jewel” in a plan the community put forward to redevelop Farmingville when there are “so many projects nowadays that communities are coming out against with housing and 'not in my backyard,' " LaValle said at the event Thursday.
Investors in the project included Blackrock, the largest global asset manager, and Basis Investment Group. Lenders to the developer included Santander Bank and City National Bank.
The developer agreed to a 15-year Payment in Lieu of Taxes agreement with the Brookhaven IDA, revised in 2020 to reflect the change in ownership, that includes about $10 million in foregone property tax revenue, a $5 million sales tax exemption and a $658,000 exemption from mortgage recording taxes, according to IDA documents.
BRP was required to rent 10% of units at affordable rents based on federal guidelines. It worked with Long Island Housing Partnership to hold a housing lottery for 30 units — a mix of two-bedrooms and three-bedrooms.
LIHP said it received 781 applications through its October deadline for the lottery and is working through its waitlist to find eligible tenants.
Rents for those units ranged from around $2,600 for a two-bedroom townhouse to $2,900 for a three-bedroom townhouse or detached home.
At the time of the lottery, a couple needed to earn between $66,480 and $98,500 to qualify to rent the two-bedroom units. Income criteria depends on the size of the household.
Hunter Gross, vice president of the Huntington Township Housing Coalition, who supports increasing housing opportunities on Long Island, says the Arboretum provides a great opportunity for families who can't afford to buy homes after recent increases in prices and mortgage rates. Ideally the developer could have set aside 20% of units as affordable rentals, said Gross, who is not involved in the project.
Given opposition to housing in other Suffolk communities, including Southampton Town's recent rejection of a 50-unit affordable housing complex with half the units set aside for veterans, any new housing on Long Island is a win, Gross said.
“Until we start having more affordable ownership opportunities, people need housing, and developments like this can create some type of relief for people,” Gross said.
After more than a decade, the development will anchor a revitalization for Farmingville, said Michael Wentz, president of the Farmingville Hills Chamber of Commerce, which is leasing space in the development.
"This is now the core of Farmingville," said Wentz.
Elected officials, community members and developers marked the opening of the 292-unit Arboretum in Farmingville on Thursday, which offers a mix of apartments, townhomes and detached single-family houses for rent.
The $150 million development, which is more than a decade in the making, is built on 62 acres off Horseblock Road that was formerly a farm and nursery. It includes 7-acre public park.
“This is a transformative development that's going to change Farmingville,” Michael Kelly, president of Stony Brook-based Kelly Development, said at the event on Thursday. Kelly is a former member of the Suffolk County Planning Commission and former board member of the Brookhaven IDA.
Michael Kelly, president of Stony Brook-based Kelly Development, is a former member of the Suffolk County Planning Commission and former board member of the Brookhaven IDA. Credit: Rick Kopstein
Kelly, as developer, first bought the property in 2010, he said. After an initial plan for condos was scrapped and Kelly's development partner Michael McHugh died in 2018, he sold the property to Manhattan-based BRP Companies.
WHAT TO KNOW
- Elected officials marked the opening this week of the 292-unit Arboretum housing development in Farmingville.
- Officials praised the complex as part of a revitalization of the area.
- Rents at the Arboretum start at $3,650 for two-bedroom units and rise to $5,400 for three-bedroom houses.
Rents start at $3,650 a month for a 1,400-square-foot, two-bedroom, two-bath apartment and rise to $5,400 for a 2,300-square-foot, three-bedroom single-family detached house, according to the Arboretum's website. Some of the units include bonus space that could be used as an office.
Housing supply limited
The development will appeal to downsizers and people faced with few options for larger rental homes on Long Island, said Zach Schwanbeck, director at BRP.
“If people are moving to the area, they may not want to buy right away,” he said. “This is a good opportunity because you can lease a townhouse or an entire single-family house.”
Asked about the pricing, Schwanbeck acknowledged the limited supply of housing on Long Island.
“We work with experts and the latest market data, and we understand that's where the market is at right now.”
At this point, about 130 units are ready for occupancy, and around 40 are occupied. The first tenants arrived in February. Amenities include a pool, fitness center and coworking area as well as plans for tennis and pickleball courts and a putting green. The development is pet-friendly.
Kelly continues to develop 24,000 square feet of commercial space at the entrance of the site, which will include a restaurant and office space, he said.
Brookhaven Town Supervisor Dan Panico commended the design of the community, which has houses with backyards along its perimeter, bordering single-family neighborhoods, and multifamily housing in the middle.
“It shows that you can build housing in communities that conforms with the character of the existing community and make it work,” he said.
Panico told Newsday that while other towns around Long Island talk about building housing, it is actually happening in Brookhaven.
Marisa Pizza, board member of the Farmingville Historical Society, praised the developers for preserving Hanrahan Firehouse, a historic building on the property, which the group feared would be leveled in the process.
Brookhaven Town Clerk Kevin LaValle, who previously represented the area in the Brookhaven Town Council, called the project “the jewel” in a plan the community put forward to redevelop Farmingville when there are “so many projects nowadays that communities are coming out against with housing and 'not in my backyard,' " LaValle said at the event Thursday.
Investors in the project included Blackrock, the largest global asset manager, and Basis Investment Group. Lenders to the developer included Santander Bank and City National Bank.
IDA tax break
The developer agreed to a 15-year Payment in Lieu of Taxes agreement with the Brookhaven IDA, revised in 2020 to reflect the change in ownership, that includes about $10 million in foregone property tax revenue, a $5 million sales tax exemption and a $658,000 exemption from mortgage recording taxes, according to IDA documents.
BRP was required to rent 10% of units at affordable rents based on federal guidelines. It worked with Long Island Housing Partnership to hold a housing lottery for 30 units — a mix of two-bedrooms and three-bedrooms.
LIHP said it received 781 applications through its October deadline for the lottery and is working through its waitlist to find eligible tenants.
Rents for those units ranged from around $2,600 for a two-bedroom townhouse to $2,900 for a three-bedroom townhouse or detached home.
At the time of the lottery, a couple needed to earn between $66,480 and $98,500 to qualify to rent the two-bedroom units. Income criteria depends on the size of the household.
Hunter Gross, vice president of the Huntington Township Housing Coalition, who supports increasing housing opportunities on Long Island, says the Arboretum provides a great opportunity for families who can't afford to buy homes after recent increases in prices and mortgage rates. Ideally the developer could have set aside 20% of units as affordable rentals, said Gross, who is not involved in the project.
Given opposition to housing in other Suffolk communities, including Southampton Town's recent rejection of a 50-unit affordable housing complex with half the units set aside for veterans, any new housing on Long Island is a win, Gross said.
“Until we start having more affordable ownership opportunities, people need housing, and developments like this can create some type of relief for people,” Gross said.
After more than a decade, the development will anchor a revitalization for Farmingville, said Michael Wentz, president of the Farmingville Hills Chamber of Commerce, which is leasing space in the development.
"This is now the core of Farmingville," said Wentz.
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.
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Newsday Live: A chat with Joan Baez Join Newsday Entertainment Writer Rafer Guzmán and Long Island LitFest for an in-depth discussion with Grammy-winning singer, songwriter and social activist Joan Baez about her new autobiographical poetry book, "When You See My Mother, Ask Her to Dance."