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 form partnership to provide middle‑market first‑mortgage construction financing; first deal finances Quogue industrial/self‑storage project
Key point: Two investment firms have launched a strategic partnership to deliver first‑mortgage construction financing for mid‑market development projects, and their initial loan is a $47.8 million construction facility backing a mixed industrial and self‑storage development in Quogue, New York.
Deal and project overview
The partners provided a $47.8 million loan to support the development of Quogue Business Park, a mixed‑use project on a 19.2‑acre site at 8 Midhampton Avenue. Reports list the new facility at either 217,000 or 218,000 square feet, reflecting a minor discrepancy among statements about the project size. The development is planned as two shallow‑bay industrial buildings plus a self‑storage component. Construction began in the second quarter of 2025, with an expected completion in the third quarter of 2026.
The project is designed to serve local businesses and residents in the Hamptons area. The industrial buildings are intended to maximize tenant flexibility, with spaces that can accommodate users as small as 5,000 square feet and the option to supply individual loading docks and drive‑in doors. The self‑storage portion is planned to provide solutions for both permanent and seasonal residents as well as small businesses. The site is positioned near major local highways to improve access to both forks of the region.
How the partnership will operate
The alliance will focus on the industrial, multi‑family and self‑storage sectors and aims to expand an existing working relationship between the firms. One partner brings construction lending infrastructure and sourcing relationships in the development community, while the other contributes advisory, investment experience and access to flexible insurance capital. All partnership projects are to be funded through the insurance capital platform offered by the investment partner.
Who is involved
On the lending side, the construction group is led by a senior managing director who heads lending for the construction lender. The investment partner is co‑chief investment officer and focuses on structuring agile debt and equity solutions across major U.S. asset classes, with an emphasis on multi‑family. The Quogue loan facility was arranged through a capital markets team acting for the developer and its partner investor. The developer on the Quogue project is a private real estate investment and development firm based in Port Chester, working with a co‑investor based in New York and Washington, D.C.
Financial scale and background
The construction lender has roots stretching back several decades and manages a large portfolio of assets across Europe and North America. The investment partner was founded in 2010 and manages several billion dollars in assets, specializing in commercial real estate debt and equity solutions. The combined platform aims to fill a perceived gap in the mid‑market construction lending space by marrying a local sourcing and lending presence with flexible insurance capital.
Related financing activity on Long Island
Separately, a regional developer secured a $24 million construction loan to build a 55‑and‑over rental community in Middle Island. That financing was arranged by a real estate financial advisory firm and provided by a regional bank as a two‑year balance‑sheet construction facility at 70 percent LTC/LTV. The Middle Island project will deliver 74 two‑bedroom townhomes across 37 duplex buildings, include on‑site amenities and reserve a small number of units for affordable and workforce housing under local development incentives.
Why this matters
The new partnership aims to increase the availability of tailored construction capital for mid‑market projects that may not fit the risk profile or size thresholds of larger institutional lenders. By combining construction sourcing and local market know‑how with an insurance‑backed capital base, the teams expect to provide flexible lending structures for developers in sectors that remain active regionally.
Caption
L‑R: Axonic Capital Co‑CIO Matt Weinstein and Affinius Capital Senior Managing Director and Head of Lending Michael Lavipour (identified individuals; no image provided).
FAQ
Q1: What is the new partnership?
A strategic collaboration between two investment firms to offer first‑mortgage construction financing focused on middle‑market industrial, multi‑family and self‑storage development projects.
Q2: What is the first project financed under the partnership?
The initial deal is a $47.8 million construction loan for a mixed industrial and self‑storage development in Quogue on a 19.2‑acre site, scheduled from Q2 2025 to Q3 2026.
Q3: How are projects funded?
Projects under this collaboration are funded through the investment partner’s insurance capital platform to provide long‑duration and flexible construction financing.
Q4: Who arranged the Quogue loan?
A capital markets advisory team facilitated the construction financing on behalf of the developer and its institutional partner. The development is led by a private real estate investment and development firm working with a co‑investor.
Q5: What other financing activity is noted?
A regional 55‑and‑over rental development in Middle Island closed a separate $24 million construction loan arranged by a real estate finance advisor and provided by a regional bank, enabling that project to proceed.
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Key features at a glance
| Feature | Detail |
|---|---|
| Partnership | Construction lending platform combining construction sourcing and insurance capital |
| Partners | Construction lender with long operating history and an investment firm with an insurance capital platform |
| Target sectors | Industrial, multi‑family, self‑storage |
| First deal | $47.8 million construction loan for Quogue Business Park |
| Project size | Reported at 217,000–218,000 sq ft on a 19.2‑acre site |
| Location | Quogue, New York — near Sunrise and Montauk highways |
| Construction timeline | Started Q2 2025; expected completion Q3 2026 |
| Funding source | Insurance platform capital |
| Other regional deal | $24 million construction loan for a 55+ rental community in Middle Island |
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
Author: Construction NY News
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