Quogue, New York, September 25, 2025
News Summary
Two investment firms launched a mid-market construction lending platform that began with a $47.8 million loan to finance a 217,000-square-foot Class A industrial and self-storage project in Quogue. The partnership pairs one firm’s construction lending platform and sourcing with the other’s flexible insurance capital to deliver first mortgage financing for projects too large for local lenders but too small for major banks. The report also covers a village ban on bulk retail propane that halted a developer’s plan, a Southampton commercial site listed for $13 million, an $11.75 million Quogue oceanfront sale, and a nightclub demolition in East Quogue.
New mid‑market construction lending platform launches with a $47.8 million industrial and self‑storage deal
Two investment firms announced a strategic partnership to expand construction lending in the middle market, and the new effort kicked off with a $47.8 million loan that will finance the ground‑up construction of a 217,000‑square‑foot Class A industrial and self‑storage property in Quogue, New York. The arrangement ties one firm’s advisory and investment abilities to the other’s construction lending network, with financing provided through an insurance capital vehicle.
What the partnership aims to do
The partnership is built to deliver mid‑market first mortgage financing for new development projects. It combines an established construction lending platform with flexible insurance capital to serve projects that are often too large for small local lenders but too small for major banks and institutional debt markets. Appetite for these mid‑market loans is reported to be strong, especially in the multifamily, industrial and self‑storage sectors.
First deal details
The inaugural transaction under the platform is the $47.8 million loan for the Quogue industrial and self‑storage project. That deal demonstrates the platform’s focus on ground‑up development and on asset types that have shown resilience in recent years. The loan will be funded using the partnership’s insurance capital source.
Background on the firms
One partner is described as an institutional real estate investment firm with decades of experience and a large portfolio that spans North America and Europe. The other partner is an investment manager with experience across commercial real estate debt and equity and a flexible capital base made up of private partnerships, separate accounts, insurance mandates and listed funds. Together the partners aim to scale a construction finance platform targeted at the middle of the market.
Quogue bans bulk retail propane after developer plans prompt action
A proposed plan to bury three 30,000‑gallon underground propane tanks in Quogue has been effectively blocked by changes to village law, and the local developer who spent time and money preparing the project is preparing legal action. The developer had planned to buy a parcel on Old Depot Road to expand retail propane distribution, and invested roughly $150,000 on planning and paperwork before the village amended its rules.
What the law change does
The village updated its energy storage rules to add limits and prohibitions for battery systems, solar arrays and legacy fuels such as propane, natural gas, oil and coal. A retail ban on bulk fuel storage was extended so that retail distribution would also be prohibited, and a nuisance industry classification was proposed to bar businesses that store more than 2,000 gallons of fuel except for on‑site heating needs.
Legal fight and timeline
The developer challenged the village’s classification of his planned tanks as a nuisance industry in state court and won on that specific point. After the court decision, the village removed the nuisance label but still adopted the amended law with other provisions that continue to prevent the underground tank plan. The developer says the board’s action was arbitrary and plans to sue to recover expenses and damages, while stopping short of pursuing a full reversal due to the time such a fight would take.
Southampton dealership site listed for $13 million
A three‑acre commercial site in Southampton’s business district, previously home to a long‑running car dealership, is listed for $13 million. The property includes a 7,900‑square‑foot two‑story building built in 1965, more than 300 feet of highway frontage, existing electric vehicle charging stations and a large service area with multiple overhead doors.
Potential uses and features
The listing notes the site could accommodate another car dealership, retail uses or a medical facility. A proposed plan envisions a two‑floor medical building of about 7,900 square feet with a potential maximum of 15,000 square feet and a full basement for additional storage. Annual property taxes are listed at about $7,038.
Quogue oceanfront home sells for $11.75 million
A newly built oceanfront house at 98 Dune Road in Quogue closed at $11.75 million. The home, completed in roughly seven months, sits on just over half an acre and offers five en‑suite bedrooms, an oceanside gunite pool, two outdoor kitchens, smart home systems, and high‑end kitchen appliances. The property was reported to have gone into contract within days of being listed.
Former East Quogue nightclub razed; subdivision likely
A vacant building that once operated as a popular nightclub and live music venue at 331 Montauk Highway has been demolished, leaving a large excavation. The removal clears a condition required for a subdivision plan that, if approved, would split the land into three lots suitable for single‑family homes. Town planning officials expect the subdivision approval to move forward now that the structure is gone.
Site prospects
The cleared site is in an estate currently under local administration. Historic use of the site as a club ended decades ago after zoning and legal challenges; the recent demolition responds to long‑standing calls to remove the eyesore and enable new residential lots that are expected to sell in a modest price range for the area.
FAQ
What is the new construction finance platform?
It is a joint effort between two investment firms to provide first mortgage construction loans for mid‑market projects. The platform pairs one firm’s construction lending experience and sourcing with the other’s flexible insurance capital to fund projects that fall between small local loans and large institutional financings.
What was the first loan made under the partnership?
The first loan is a $47.8 million mortgage to fund the development of a 217,000‑square‑foot Class A industrial and self‑storage building in Quogue, New York.
Why did Quogue change its energy storage rules?
The village revised its laws to set clearer limits on energy storage and bulk fuel holdings, extending a ban on wholesale storage to include retail fuel distribution and adding other restrictions. Officials cited safety concerns and potential impacts on emergency services in adopting the changes.
What is the developer’s response to the Quogue law change?
The developer who planned underground propane tanks spent time and money preparing the project and has filed a court action to recover costs and challenge the village’s actions. A state court removed a specific nuisance classification the village had applied, but other provisions in the amended law still prevent the project.
What are the details of the Southampton listing?
The three‑acre site includes a 7,900‑square‑foot building, ample parking, EV chargers, and more than 300 feet of frontage. It is listed for $13 million and is offered for uses including auto, retail or medical development.
What happened to the former nightclub site in East Quogue?
The building was demolished, creating a cleared parcel that meets a condition for a three‑lot subdivision. Town officials expect the subdivision review to proceed now that the structure has been removed.
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Key features summary
| Topic | Key points |
|---|---|
| Construction finance platform | Partnership to deliver mid‑market first mortgage loans; inaugural $47.8M loan for 217,000 sq ft project; insurance capital used for funding. |
| Quogue fuel law changes | Village amended energy storage rules to ban bulk retail fuel storage and add limits on various fuels; legal challenge filed by developer. |
| Southampton commercial listing | Three‑acre former dealership site listed at $13M; 7,900 sq ft building; EV chargers; potential for auto, retail or medical use. |
| Quogue oceanfront sale | New oceanfront home sold for $11.75M; five en‑suite bedrooms, pool, smart home features; rapid contract after listing. |
| East Quogue demolition | Former nightclub razed; land cleared for likely subdivision into three residential lots; planning approval anticipated. |
Deeper Dive: News & Info About This Topic
Additional Resources
- Behind the Hedges: JLL Facilitates $48M Loan — Quogue Business Park
- Wikipedia: Commercial real estate
- Long Island Business News: Quogue industrial development loan
- Google Search: Quogue industrial self-storage loan
- Behind the Hedges: Quogue bans bulk retail propane after developer plans prompt action
- Wikipedia: Energy storage
- Behind the Hedges: Southampton dealership site listed for $13 million
- Google Scholar: auto dealership redevelopment site valuation
- 27east: New build on Dune Road in Quogue gets $11.75 million
- Encyclopedia Britannica: Quogue, New York
Author: Construction FL News
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