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 Capital and Axonic Capital launch partnership; first deal is a $47.8M construction loan for Quogue industrial and self‑storage project
Two investment firms have formed a new partnership to provide first‑mortgage construction financing for middle‑market development projects, with an initial loan of $47.8 million to fund an industrial and self‑storage development in Quogue, New York. The collaboration targets industrial, multi‑family and self‑storage assets and will use insurance capital to fund projects.
What happened
The newly announced relationship expands an existing working relationship between the two firms and pairs one firm’s advisory and investment capabilities with the other’s construction sourcing and lending infrastructure. The partners’ first deal under the arrangement is a construction loan for a mixed‑use business park in Quogue being developed by a private real estate developer and its partner investor.
Details of the Quogue financing and project
The construction loan is for $47.8 million and supports a mixed‑use facility described in public financing materials as a project of roughly 217,000–218,000 square feet on a 19.2‑acre site. The development plan calls for two shallow‑bay industrial buildings plus a self‑storage component, offering flexible industrial bays that can accommodate users as small as 5,000 square feet, individual loading docks and drive‑in doors, and a storage facility intended for both permanent and seasonal residents and small businesses.
The site is located near major east‑west routes on Long Island, providing access to multiple locations on the peninsula. Construction began in the second quarter of 2025, with expected completion slated for the third quarter of 2026.
How the financing is structured
All projects funded under this partnership will be supported through the insurance capital platform provided by one partner. A capital partner contributed the loan on an insurance balance sheet basis, while a capital markets advisor facilitated the transaction for the developer and its investment partner. The financing firm arranging the loan noted design features intended to boost tenant efficiency, access and parking for small business operations.
Who the parties are
The partnership pairs a San Antonio‑based investment firm founded in 1982 that now reports more than $62 billion in gross assets under management across Europe and North America, with a New York‑based commercial real estate investment firm founded in 2010 that reports more than $6.5 billion in assets under management. Leadership at each firm was identified by title as responsible for lending and investment strategy and said the combination of construction lending infrastructure, sourcing capability and flexible insurance capital will allow the firms to be active in the middle market.
Target market and activity outlook
The partnership will focus on middle‑market development loans in the industrial, multi‑family and self‑storage sectors. The firms described the approach as one that seeks to fill a market gap for construction financing at this scale by pairing local construction sourcing with flexible, insurance‑backed capital that allows for tailored lending structures for developers and sponsors.
Related local developments
Separately, a regional developer secured a $24 million construction loan for a 55‑and‑over rental community that will deliver 74 two‑bedroom townhomes on a 23.5‑acre site. That financing included a two‑year balance‑sheet construction loan at 70 percent LTC/LTV and included provisions for a small number of affordable and workforce units tied to area median income limits. That project is expected to take 18 to 22 months to complete.
Why this matters
The new partnership brings insurance balance‑sheet capital to the construction lending market for middle‑market projects, a segment that borrowers and lenders have viewed as underserved at times. The Quogue loan demonstrates the partnership’s ability to structure sizable construction financing for mixed‑use industrial and storage projects in suburban and resort‑adjacent markets.
FAQ
What is the partnership between the two firms?
The firms have formed a strategic partnership to provide first‑mortgage construction financing for middle‑market development projects in industrial, multi‑family and self‑storage sectors.
What was the first deal under the partnership?
The first announced deal is a $47.8 million construction loan for a mixed‑use industrial and self‑storage development in Quogue, New York.
How large is the Quogue project?
The project is reported at about 217,000 to 218,000 square feet on a 19.2‑acre site and includes two shallow‑bay industrial buildings plus a self‑storage facility.
Who is providing the money for deals under this partnership?
Funding for projects under the partnership is provided through an insurance capital platform affiliated with one partner.
When will the Quogue project be completed?
Construction began in the second quarter of 2025 and the project is expected to be completed in the third quarter of 2026.
What other recent regional construction financing was noted?
Another recent transaction closed a $24 million construction loan for a 55‑and‑over rental townhome community in the region, backed by a regional bank on a two‑year balance‑sheet loan at 70 percent LTC/LTV.
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Key features at a glance
| Feature | Details |
|---|---|
| Partnership focus | Middle‑market first‑mortgage construction loans for industrial, multi‑family and self‑storage |
| First deal | $47.8 million construction loan for Quogue industrial / self‑storage project |
| Project size | Approximately 217,000–218,000 sq ft on 19.2 acres |
| Funding source | Insurance capital platform |
| Construction timeline | Started Q2 2025; expected completion Q3 2026 |
| Developer / partners | Private developer and partner investor (developer based in the region; partner investor based in New York / Washington, D.C.) |
| Regional context | Project located near major east‑west routes; aims to serve local businesses and seasonal residents |
| Related financing noted | $24 million construction loan for an age‑restricted rental townhome community; 70% LTC/LTV two‑year balance‑sheet loan |
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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