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 deliver middle‑market first‑mortgage construction financing; first deal funds Quogue industrial/self‑storage project
Two investment firms have launched a dedicated partnership to provide first‑mortgage construction financing for middle‑market development projects, starting with a $47.8 million construction loan for a mixed industrial and self‑storage campus in Quogue, New York.
What the partnership is and its first deal
The new collaboration pairs a San Antonio‑based credit and equity firm with a New York‑based commercial real estate investment manager to target construction lending in the industrial, multi‑family and self‑storage sectors. The partners announced their first joint transaction is a $47.8 million construction loan to finance development of a business park in Quogue. The project has been variously reported as roughly 217,000 to 218,000 square feet, reflecting a small discrepancy in public descriptions of the planned size.
How the financing will be provided
All projects under the partnership will be funded through the investment manager’s insurance capital platform. The arrangement combines the investment manager’s advisory and capital capabilities with the other firm’s construction lending infrastructure, sourcing relationships and network across the construction industry. The partners have indicated the tie‑up expands on an existing working relationship and is designed to fill a perceived gap in middle‑market construction lending.
Details of the Quogue project
The Quogue development is a mixed‑use business park planned on a 19.2‑acre site near Sunrise and Montauk highways, positioned to serve businesses and residents across the Hamptons’ North and South forks. The project address is listed at 8 Midhampton Avenue and is being developed by a private real estate investment and development firm in partnership with a private investment partner.
The planned complex includes two shallow‑bay industrial buildings plus a self‑storage facility. Design features highlight flexible, small‑user industrial bays, with units capable of accommodating tenants as small as 5,000 square feet, and the ability to provide each industrial user with an individual loading dock and a drive‑in door. The self‑storage portion is described as serving both permanent and seasonal residents as well as small businesses. Construction began in the second quarter of 2025 and the project is expected to reach completion in the third quarter of 2026.
Partnership leadership and strategy
The lead lending executive for the construction lender is the senior managing director and head of lending, who said the firm had been seeking the right partner to address a middle‑market construction lending need. The investment manager’s co‑chief investment officer framed the relationship as a match between agile insurance capital and a strong construction lending platform, aimed at delivering creative, flexible solutions and scaling activity in the space.
Firm profiles and scale
The San Antonio firm was founded in 1982 and focuses on credit and equity with an emphasis on value creation and income generation. It reports global gross assets under management of about $62 billion across Europe and North America. The New York investment manager was founded in 2010, specializes in commercial real estate debt and equity across major U.S. asset classes (with particular focus on multi‑family), and reports more than $6.5 billion in assets under management.
Related regional construction financing news
Separately, a developer secured a $24 million construction loan for a 55‑and‑over rental community in Middle Island. That project will deliver 74 two‑bedroom townhomes across 37 duplex buildings on a roughly 23.5‑acre site. The financing package included a two‑year balance‑sheet construction loan at roughly 70 percent LTC/LTV and carries terms that the developer said allow the project to move forward. The Middle Island development is expected to take 18 to 22 months to complete and includes a small number of units reserved for affordable and workforce households.
Why this matters
The partnership signals renewed attention to middle‑market construction lending at a time when larger institutional capital has been more selective. By pairing an insurer‑backed capital source with a firm that has established lending and sourcing capabilities in construction, the collaboration aims to accelerate financing availability for mid‑sized projects that may not fit the risk or scale profiles of larger lenders.
Next steps and activity to watch
The partners plan to pursue additional development loans in the industrial, multi‑family and self‑storage sectors, deploying capital through the insurance platform and leveraging construction lending experience to structure flexible first‑mortgage solutions. Market observers will watch for announcements of new commitments, the pace of lending, and how terms compare with other sources of construction capital for middle‑market borrowers.
FAQ
Q: Who are the partners and what will they fund?
A: The collaboration pairs a San Antonio‑based credit and equity firm with a New York‑based commercial real estate investment manager to provide first‑mortgage construction financing for middle‑market industrial, multi‑family and self‑storage projects.
Q: What is the size and scope of the first deal?
A: The first joint transaction is a $47.8 million construction loan for a mixed industrial and self‑storage campus in Quogue, roughly 217,000–218,000 square feet on a 19.2‑acre site. Construction began in Q2 2025 with expected completion in Q3 2026.
Q: How will projects be funded?
A: Projects under the partnership will be funded through the investment manager’s insurance platform, combining insurance capital with the construction lender’s sourcing and lending infrastructure.
Q: What types of buildings will the Quogue project include?
A: The Quogue project includes two shallow‑bay industrial buildings designed for flexibility and small users, plus a self‑storage facility serving local residents and small businesses.
Q: Are there other related construction financings mentioned?
A: Yes. A separate 55‑and‑over rental community in Middle Island secured a $24 million construction loan to build 74 townhomes, with some affordable and workforce units included in the plan.
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Key features at a glance
| Feature | Details |
|---|---|
| Partnership focus | Middle‑market first‑mortgage construction financing for industrial, multi‑family and self‑storage |
| First deal | $47.8 million construction loan for Quogue mixed industrial/self‑storage project |
| Project size | Reported 217,000–218,000 sq ft on 19.2 acres |
| Funding source | Investment manager’s insurance capital platform |
| Timeline | Construction began Q2 2025; expected completion Q3 2026 |
| Design highlights | Two shallow‑bay industrial buildings with small‑user bays and individual loading docks; self‑storage for seasonal and permanent needs |
| Firm scale | San Antonio firm reports ~ $62B AUM; New York manager reports > $6.5B AUM |
| Related financing | $24M construction loan for 55+ rental community in Middle Island (74 townhomes) |
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 CA News
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