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 Loan Platform Launched; Local Developments Shake Up South Fork Real Estate
Two New York investment firms announced a strategic partnership to provide mid‑market first mortgage construction financing, and they immediately put that plan into action with a near‑$48 million loan for a ground‑up industrial and self‑storage project in Quogue. At the same time on the South Fork, village officials moved to bar bulk retail propane storage, a decision that appears to have halted a local distributor’s plans and prompted legal action. Other local developments include a $13 million commercial listing in Southampton, an $11.75 million oceanfront home sale in Quogue, and the demolition of a long‑empty nightclub in East Quogue.
New Financing Platform and First Deal
The partnership pairs an institution with a long record in real estate investing and lending with an investment manager that supplies flexible insurance capital and advisory capabilities. The combined effort aims to fill a perceived gap in construction lending for middle‑market projects, targeting sectors where demand remains strong: multifamily, industrial and self‑storage. The partners plan to use insurance capital to fund loans and to leverage one firm’s sourcing network and the other’s experience in creating adaptive financing structures.
The partners announced an inaugural loan of $47.8 million to finance a 217,000‑square‑foot Class A industrial and self‑storage development in Quogue. The move signals an intent to be active in similar mid‑market development opportunities.
Quogue Bulk Propane Plan Ends, Legal Fight Begins
A local propane distributor had planned to buy land on Old Depot Road and install three buried 30,000‑gallon tanks to expand retail delivery on Long Island. The owner spent roughly $150,000 on approvals and paperwork before the village board adopted amendments to an existing local law that now prohibit bulk retail fuel storage, including propane, across the village.
The amendments expand earlier restrictions and add natural gas, propane and other bulk fuels to the list of prohibited materials for retail or wholesale storage. The revised code initially labeled such bulk fuel storage as a nuisance industry, a move that would have barred the proposed tanks. A court challenge overturned that nuisance designation in one respect, but the board enacted the amended law with other provisions that continue to block the project.
The distributor has filed a state court challenge seeking to recoup expenses and to contest the board’s actions as arbitrary and beyond the board’s lawful reach. The distributor says planning officials initially raised no objections to the project and that the village later altered its stance after public concern and safety discussions.
Southampton Commercial Property for Sale
A three‑acre commercial site in Southampton’s business district is listed for $13 million. The lot at 729 County Road 39A was the former home of a long‑running auto dealership and includes a 7,900‑square‑foot two‑story building with showroom, parts area and a large service area. The property offers more than 300 feet of highway frontage, existing electric vehicle chargers, abundant parking and a full basement.
Ownership records show the parcel sold in 2023 for $7.4 million. The site could suit a car dealer, retail use or a medical facility under the current listing materials, and a proposed medical building plan would allow up to 15,000 square feet across two floors.
Quogue Oceanfront Home Sale
A newly built oceanfront house at 98 Dune Road sold for $11.75 million. The 4,300‑square‑foot residence on a little more than half an acre was completed in seven months and reached contract within days of listing. The five‑bedroom home features high‑end kitchen appliances, smart home systems, indoor and outdoor sound, two outdoor kitchens, a gunite pool and ocean views from every main bedroom.
East Quogue Nightclub Site Razed
A vacant building that once housed a nightclub at 331 Montauk Highway was demolished, leaving an open parcel. Town planning officials say removing the derelict structure clears the way for an approved subdivision that would split the lot into three smaller parcels, each under an acre, with potential sales estimated between $150,000 and $180,000 per lot. The property is in an estate and had prior plans for subdivision that stalled before being conditionally approved after the site clearing was required.
Why These Moves Matter
The new financing platform could accelerate mid‑market development projects that typically struggle to secure construction loans. The Quogue ban on bulk retail fuels reflects growing local caution around legacy fuel storage and highlights tensions between local land use decisions and private investment plans. The Southampton listing and Quogue sale show continued activity in commercial and high‑end residential markets, while the East Quogue demolition signals movement toward parcel redevelopment.
FAQ
What companies formed the construction financing partnership?
The alliance brings together an integrated real estate investment firm with a 40‑year track record and an investment manager that uses a flexible insurance capital base to fund loans.
What is the first loan under the new partnership?
The first announced loan is for $47.8 million to fund construction of a 217,000‑square‑foot Class A industrial and self‑storage project in Quogue.
Why was the propane project in Quogue stopped?
The village passed amendments to local law that ban bulk retail fuel storage in the village, adding restrictions that make burying large propane tanks for retail distribution unlawful under the new code. The distributor has filed court papers challenging the actions.
What is for sale in Southampton?
A three‑acre commercial parcel formerly used as an auto dealership is listed for $13 million, with building space, service bays, EV chargers and highway frontage.
What happened to the East Quogue nightclub property?
The vacant structure was demolished. The cleared site is expected to be subdivided into three parcels for future home construction, subject to planning approvals.
How do these stories affect local development?
They indicate both new sources of construction capital and heightened local regulation. Together these trends will shape what kinds of projects move forward and how quickly they can be built.
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Key Features Table
| Item | Location | Key Facts | Status / Value |
|---|---|---|---|
| New Loan | Quogue | 217,000 sq ft Class A industrial + self‑storage; mid‑market construction financing | $47.8 million — funded |
| Construction Financing Platform | New York (partnership) | Mid‑market first mortgage loans; insurance capital backing; focus on multifamily, industrial, self‑storage | Launched |
| Bulk Propane Project | Quogue | Underground 3 × 30,000‑gallon tanks proposed for retail distribution; local law amended to prohibit bulk retail fuel storage | Blocked by village law; legal challenge filed |
| Commercial Listing | Southampton (729 County Road 39A) | Three acres; 7,900‑sq‑ft building; EV chargers; highway frontage; suitable for dealership, retail, medical | Listed at $13 million |
| Oceanfront Home Sale | Quogue (98 Dune Road) | 4,300 sq ft, five en‑suite bedrooms, gunite pool, smart home features | Sold at $11.75 million |
| Nightclub Site | East Quogue (331 Montauk Hwy) | Former nightclub demolished; subdivision into three lots possible | Structure razed; subdivision 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 NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York 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 New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
