A 42-unit apartment building in downtown Farmingdale has gone into contract for $15.55 million, with the closing set for next month.
Melville-based Fairfield Properties has agreed to buy 40 Elizabeth St., known as The Cornerstone, the building’s developer, Anthony Bartone of Farmingdale-based Terwilliger & Bartone Properties, said Thursday. The purchase is scheduled to close in about three weeks, he said.
The Nassau County Industrial Development Agency signed off on the deal in a unanimous vote at its meeting on Tuesday, Richard Kessel, the agency's chairman, said Thursday. The IDA will require the new owners to adhere to the same conditions Bartone agreed to in 2015, when the IDA granted tax breaks worth at least $355,563, including a mortgage recording tax exemption and sales tax exemption.
The IDA also granted at the time a 20-year payment-in-lieu-of taxes agreement that kept the building’s annual property taxes unchanged at $40,631 for the first two years, then raised them to $105,000 and then increased them by 1.5 percent annually.
The 2-year-old Cornerstone’s market-rate rents range from almost $2,200 to nearly $3,400, and the building is fully occupied, with a waiting list, Bartone said. The market for rental buildings on Long Island is “extremely strong,” Bartone said. “There’s just tremendous demand and very little supply.”
The IDA will require the new owners to continue offering four units of “workforce housing” for people with low to moderate incomes, with rents ranging from about $900 to $1,700, Bartone said.
Fairfield owns nearly 10,000 apartments on Long Island and in Queens, including six rental buildings in Farmingdale, an executive with the company said.
In addition to The Cornerstone, Bartone has developed a 154-unit building called The Jefferson as well as 24 for-sale town houses in Farmingdale. His company aims to start construction next month on a 98-unit rental complex in Hauppauge for people 55 and older, and it has plans for more than 400 additional units of housing in Nassau and Suffolk counties, Bartone said.