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.
Mid‑Market Construction Financing Platform Launched; First Loan Funds Quogue Industrial and Storage Project
A new financing platform aimed at middle‑market construction projects was announced this week through a partnership between two institutional real estate firms. The collaboration will channel insurance capital into construction loans and begins with a $47.8 million loan for a ground‑up project in Quogue, New York.
Partnership and first deal at the top
The joint effort pairs one firm’s construction lending network with another’s flexible capital and advisory capabilities to offer mid‑market first mortgage financing. The first transaction under the platform finances a 217,000‑square‑foot Class A industrial and self‑storage property in Quogue, signaling an early focus on commercial sectors that remain in demand, specifically multifamily, industrial and self‑storage.
Funding for loans made by the platform will come through an insurance capital channel controlled by one partner, with the other partner supplying loan sourcing and construction lending infrastructure built over many years. The partners say they intend to scale the platform to serve additional mid‑market development opportunities.
Local development and pushback: Quogue propane plan halted
In related Long Island news, a separate local development plan to bury three 30,000‑gallon propane tanks for retail distribution ran into village opposition and appears to be blocked by new local rules. The propane business owner had spent roughly $150,000 to prepare plans and approvals before the village board moved to amend its local law, expanding prohibitions on bulk fuel storage and adding new rules covering batteries, solar and legacy fuel sources such as propane and natural gas.
That change effectively prevents the proposed retail propane project. The business owner challenged part of the amendment in state court and succeeded in overturning a nuisance designation the board had applied to the business. After that ruling, the board removed the nuisance label but still passed the revised law, which contains other provisions that continue to bar the buried tanks. The business owner is preparing further legal action seeking damages and has indicated the planned land purchase may be canceled.
Southampton commercial lot listed for redevelopment
A major commercial property in the Southampton business district is now listed for $13 million. The three‑acre site at 729 County Road 39A includes a 7,900‑square‑foot two‑story building erected in 1965, more than 300 feet of highway frontage and multiple electric vehicle charging stations. The property, formerly home to a long‑running auto dealership, offers potential uses such as a car dealership, retail or a medical facility and includes a proposed plan for a medical building and a full basement for storage.
Quogue oceanfront home sale
A newly built oceanfront residence at 98 Dune Road in Quogue closed at $11.75 million. The 4,300‑square‑foot house on just over a half‑acre features five en‑suite bedrooms with ocean views, high‑end kitchen appliances, automated shades, smart‑home systems and indoor/outdoor entertainment spaces. The property was reported to have gone into contract within days of being listed and closed two months later.
Former nightclub site in East Quogue cleared
The vacant building that once housed a well‑known local nightclub at 331 Montauk Highway has been demolished, leaving a cleared lot that town officials expect will be subdivided into three smaller parcels. The property has a history of nightclub operations dating back decades and was previously subject to zoning and legal disputes. With the structure removed, planning officials said subdivision approvals are likely to move forward, potentially allowing three single‑family lots with access to a nearby avenue.
Why this matters
The new financing platform targets a frequently underserved slice of the construction market: mid‑sized projects that are often too large for small regional lenders and too small for major national banks or large institutional debt funds. By combining specialized loan sourcing with insurance capital, the new vehicle could increase available credit for projects such as industrial buildings, self‑storage facilities and multifamily developments.
At the same time, local land‑use fights show how municipal rules and community concerns can suddenly alter project viability. The Quogue propane dispute underscores how villages can adopt broad energy and safety policies that effectively prohibit certain types of fuel storage, while subdivision and demolition work in neighboring towns illustrate how aging commercial parcels can be reconfigured or sold when buildings are removed.
Bottom line
Expect to see more mid‑market construction loans moving into the market as the partnership pushes to scale. Local regulatory changes and community action will continue to shape which projects move forward, from large commercial redevelopment sites to small fuel distribution plans and single‑lot residential subdivisions.
Additional factual notes
- Media contacts were listed in the financing announcement for both firms.
- The inaugural loan under the new platform finances a combined industrial and self‑storage facility totaling 217,000 square feet in Quogue.
- Local planning boards and courts have been active in recent months on issues ranging from nuisance designations to subdivision approvals.
FAQ
Q: What does the new partnership do?
A: It combines loan sourcing and construction lending expertise with flexible insurance capital to provide first mortgage construction financing targeted at mid‑market projects.
Q: What was the first loan made under the partnership?
A: A $47.8 million loan for a 217,000‑square‑foot Class A industrial and self‑storage development in Quogue, New York.
Q: Why was the propane project in Quogue blocked?
A: The village updated its local law to expand prohibitions on bulk fuel storage and related energy storage rules, effectively preventing the proposed retail propane storage plan despite earlier permitting steps.
Q: What are the potential uses for the Southampton property at 729 County Road 39A?
A: The site could support a car dealership, retail operations, a medical facility, or redevelopment plans that include more than 300 feet of highway frontage and existing EV charging stations.
Q: What comes next for the former East Quogue nightclub site?
A: With the building razed, local officials expect a subdivision into three lots to move forward, creating opportunities for new single‑family construction.
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Key feature summary
| Topic | Key details |
|---|---|
| Financing platform | Mid‑market construction loans funded via insurance capital; inaugural $47.8M loan for industrial/self‑storage in Quogue. |
| Quogue propane dispute | Village amended laws to ban bulk fuel storage for retail; state court overturned nuisance label but other rules still block the project; further legal action expected. |
| Southampton listing | Three‑acre commercial parcel at 729 County Road 39A listed for $13M; adaptable for dealership, retail or medical use; includes EV charging. |
| Quogue home sale | New 4,300 sq ft oceanfront home at 98 Dune Road sold for $11.75M; high‑end finishes and smart‑home features. |
| East Quogue demolition | Former nightclub at 331 Montauk Highway razed; subdivision into three residential lots expected. |
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 TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
