Affinius and Axonic Form Middle‑Market Construction Lending Partnership

Quogue, New York, September 26, 2025

News Summary

Investment firms Affinius Capital LLC and Axonic Capital LLC announced a partnership to provide first‑mortgage construction financing for middle‑market development projects, beginning with a $47.8 million loan for Quogue Business Park. The mixed industrial and self‑storage project spans about 217,000–218,000 square feet on a 19.2‑acre site and is already under construction, with completion expected within roughly 12–18 months. The platform combines Affinius’ construction lending network and deal sourcing with Axonic’s insurance capital and flexible financing structures to target industrial, multi‑family and self‑storage projects across the middle market.

Affinius and Axonic form middle‑market construction lending partnership; first deal is $47.8M Quogue loan

Investment firms Affinius Capital LLC and Axonic Capital LLC announced a partnership to provide first‑mortgage construction financing for mid‑market development projects, starting with a $47.8 million loan to fund a mixed industrial and self‑storage project in Quogue, New York. The partnership will focus on the industrial, multi‑family and self‑storage sectors and aims to expand the firms’ existing collaboration to deliver more construction loans in the middle market.

What the new partnership will do

The relationship combines Axonic’s advisory and investment capabilities with Affinius’ construction industry network and deal sourcing. All projects under the collaboration are expected to be funded through Axonic’s insurance platform. Executives from both firms described the tie as a way to plug a perceived gap in middle‑market construction lending by combining a lender’s on‑the‑ground construction infrastructure with flexible insurance capital.

First deal: Quogue Business Park

The partnership’s inaugural transaction is a $47.8 million construction loan for Quogue Business Park, a mixed‑use project being developed on a 19.2‑acre site near Sunrise and Montauk highways. The facility is reported as roughly 217,000–218,000 square feet (sources list slightly different figures). The planned development at 8 Midhampton Avenue includes two shallow‑bay industrial buildings plus a self‑storage component designed to serve businesses and residents across the Hamptons.

The industrial buildings are designed for flexibility, with space configured to accommodate tenants as small as 5,000 square feet, plus individual loading docks and drive‑in doors for each tenant. The self‑storage portion is intended to provide storage for both permanent and seasonal residents as well as for small businesses. The project began construction in the second quarter of 2025 and is expected to reach completion in the third quarter of 2026.

Who arranged and who’s developing

A capital markets team arranged the construction loan on behalf of the developer, a private real estate investment and development firm based in Port Chester, together with a private investment partner with offices in New York and Washington, D.C. The firms arranging the financing identified the project as offering modern industrial product and storage solutions tailored to local needs, emphasizing access, parking and flexible configurations for small business operators.

Affinius and Axonic at a glance

Affinius Capital — founded in 1982 and based in San Antonio — provides credit and equity with a focus on value creation and income generation and reports roughly $62 billion in gross assets under management across Europe and North America. Axonic Capital — founded in 2010 and based in New York — specializes in commercial real estate debt and equity and reports more than $6.5 billion in assets under management, with a focus on multi‑family and other major U.S. asset classes.

Why the market matters

The partners said their complementary skills — Affinius’ construction lending infrastructure and sourcing plus Axonic’s insurance capital and flexible financing structures — position the platform to be active in the middle‑market construction lending space. The move reflects ongoing demand for construction financing that combines speed, flexible structures and borrower services tailored to mid‑sized projects.

Other regional financing notes

• The Crest Group secured a $24 million construction loan for The Villas at Oak Run, a 55‑and‑over rental development in Middle Island that will bring 74 two‑bedroom townhomes to a 23.5‑acre site. The loan was provided on a two‑year balance‑sheet basis at roughly 70% LTC/LTV. The project will include amenities such as a fitness center, walking path and pickleball courts and is expected to take about 18–22 months to complete.
• The Middle Island project received economic incentives from a local industrial development agency and includes a mix of market‑rate, workforce and affordable units as part of the financing package.

Local development snapshots

Other items of local development interest include a chef‑driven food hall opening in Westbury Plaza, a mixed‑use sale on an historic site in Huntington, a new non‑mall restaurant opening in Oceanside, and a major commercial parcel in Southampton listed for $13 million. These items reflect continuing activity across retail, residential and commercial property types in the region.

Outlook

The Affinius–Axonic platform is positioned to offer creative middle‑market construction financing backed by insurance capital. With the initial Quogue loan in place and a stated plan to expand activity into industrial, multi‑family and self‑storage projects, the partnership could accelerate several mid‑sized developments that need first‑mortgage construction capital over the next 12–24 months.

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Key features at a glance

Deeper Dive: News & Info About This Topic

Additional Resources

• Alternatives Watch: Affinius and Axonic form partnership
• Wikipedia: Construction loan
• Behind the Hedges: JLL facilitates $48M loan — Quogue Business Park
• Wikipedia: Quogue, New York
• Long Island Business News: Quogue industrial development loan
• Google News: Quogue industrial development loan
• Long Island Business News: Crest Group secures $24M loan
• Encyclopedia Britannica: senior housing (search)
• Behind the Hedges: Storms Motors lot offered for $13M
• Google Scholar: commercial real estate development

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