Hempstead IDA authorizes benefits for B2K purchase, renovation of The Bristal Assisted Living at Lynbrook
Lynbrook, NY Fred Parola, CEO of the town of Hempstead Industrial Development Agency (IDA), said the agency has granted a package of economic development incentives that will aid a developer’s purchase and renovation of an assisted living facility that will include 20% affordable residences.
The incentive package for the $34.9 million project proposed by Jericho-based B2K Development (formerly Engel Burman Group) was authorized by the IDA at its Oct. 21st meeting. Preliminary approval was granted on Sept. 16th for the project at Bristal Assisted Living at Lynbrook, 8 Freer St.
B2K will spend $26.21 million to buy out the majority partner in the project, Harrison Street Real Estate Investments of Chicago, and another $6.25 million on interior and exterior renovations. Harrison and B2K disputed the need for the renovation, according to B2K.
The 122-unit Bristal Assisted Living at Lynbrook has not recovered from a drop in occupancy that resulted from the COVID-19 Pandemic, the company noted.
B2K currently holds a minority share in the property, which operated under an IDA benefits agreement that expired on Dec. 1, 2023. Engel Burman, which built the facility, partnered in 2013 with Harrison Street to buy out the then owners, Toronto-based Chartwell Senior Housing Real Estate Investment Trust and ING Australia.
Moreover, B2K agreed to set aside 20% of the 122 units at rents that are affordable to residents earning 80% of the area’s AMI.
“This project will keep jobs in the town of Hempstead and will continue to provide aging residents of Lynbrook and neighboring communities with the ability to remain in the area at affordable rents,” Parola said.
The town of Hempstead Industrial Development Agency is a public benefit agency empowered to help qualified businesses relocate, expand, and grow in the town. The town of Hempstead Industrial Development Agency is authorized by New York State to promote economic development with financial assistance and tax relief. The town is committed to responsible development, emphasizing its stable tax base, highly educated workforce, and access to major airports, New York City, and world markets.
IDA assistance has resulted in more than $2 billion in project financing and has led to the creation or retention of 11,000 permanent jobs to benefit the town’s economy.