A Long Island development firm received preliminary approval for economic incentives from the Town of Hempstead Industrial Development Agency to assist with the acquisition and renovation of an assisted living facility in Lynbrook.
D2K at Lynbrook LLC, an affiliate of Jericho-based B2K Development, currently has a minority ownership stake of the 90,388-square-foot, 122-unit property at 8 Freer St. called The Bristal at Lynbrook.The company is seeking to buy the majority stake in the facility owned by Chicago-based Harrison Street Real Estate Capital and perform extensive renovations, with the help of $24.5 million in tax-exempt bonds and $1 million in taxable bonds backed by the IDA, a payment-lieu-of-taxes program, and sales and mortgage recording tax exemptions.
The $35.6 million project will result in the retention of 68 permanent jobs and create five construction jobs during $5 million in interior renovations planned for the property, according to an IDA statement. None of the facility’s current residents will have to move during construction.
B2K, which originally developed the Lynbrook facility as Engel Burman Group,also agreed to set aside 20 percent of the 122 units at rents affordable to residents earning 50 percent of the area’s annual median income, according to the IDA. B2K and its predecessor company have managed the facility since its opening.
B2K principal Steven Krieger said occupancy at the facility, which was around 90 percent, fell to about 60 percent during the COVID pandemic. Occupancy is now about 70 to 80 percent. Krieger said 80 percent of The Bristal’s residents formerly lived within 2miles of the facility.
The facility operated under an IDA benefits agreement that expired on Dec. 1, 2023. The new benefits package is subject to further IDA review, a public hearing, and a final authorizing resolution.
“This proposed project, if it receives final approval, will enable the residents of Lynbrook and nearby communities to accommodate their elderly residents at affordable rents,” Fred Parola, Hempstead IDA CEO, said in the statement.
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