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.
Regional construction finance deal announced as local property moves, bans and demolitions reshape the East End
Two investment firms announced a strategic partnership to provide mid-market construction financing, and the teams immediately deployed capital to an industrial and self-storage project in Quogue. Local land-use actions and property listings also moved forward this week: a proposed underground propane storage project appears blocked after village law changes and legal fights; a major Southampton commercial site was listed for sale; an oceanfront Quogue home closed; and an East Quogue nightclub property was demolished, opening the way to subdivision.
Topline: new financing platform and first loan
Two firms expanded a prior collaboration to create a platform focused on first mortgage financing for new developments in the middle market. The platform will combine one firm’s advisory and insurance funding capabilities with the other’s construction lending network and sourcing experience. The partners say the aim is to provide creative and flexible loans for sectors showing strong demand, notably multifamily, industrial and self-storage.
The partnership’s inaugural transaction is a $47.8 million loan that will fund ground-up development of a 217,000-square-foot Class A industrial and self-storage building in Quogue. The financing is structured to be funded through an insurance capital vehicle tied to one partner.
Quogue retail propane plan effectively barred by village action
A local propane distributor seeking to install three buried 30,000-gallon tanks on a parcel on Old Depot Road spent an estimated six figures on permitting and planning work before village trustees moved to amend local law to prohibit the type of retail bulk fuel storage the project required. The amended code expands an existing ban on wholesale gasoline, oil and coal storage to include retail storage and adds propane, natural gas and firewood to the list of prohibited bulk fuels.
The distributor challenged one element of the law in state court and successfully overturned a nuisance-industry classification applied to the proposed business. Despite that ruling, the board enacted other provisions that continue to functionally block the project. The distributor has filed further legal papers seeking damages for planning and permitting expenses and says the land purchase tied to the project may be abandoned if the prohibition remains.
Southampton dealership site listed for $13 million
A three-acre commercial parcel in Southampton’s business district, the former home of a long-standing auto dealership, hit the market with a list price of $13 million. The 132,015-square-foot lot includes a 7,900-square-foot two-story building constructed in 1965, multiple service bays, showroom and parts areas, more than 300 feet of highway frontage, and several electric vehicle charging stations.
The listing notes the property can support a range of uses including an auto dealership, retail or a medical facility, and a proposed plan already exists for a medical building of up to 15,000 square feet. The site carries annual taxes near seven thousand dollars and was purchased by the current owner in 2023 for approximately $7.4 million.
Quogue oceanfront new build closes at $11.75 million
A newly built oceanfront residence in Quogue closed at $11.75 million. The 4,300-square-foot house sits on roughly 0.61 acre and features five en-suite bedrooms with ocean views, luxury kitchen appliances, smart home systems, indoor and outdoor speakers, two outdoor kitchens and an oceanside gunite pool. The property reportedly went under contract within days of being listed and was completed in about seven months.
East Quogue nightclub razed; subdivision likely
A vacant building that once operated as a nightclub on Montauk Highway in East Quogue was demolished, leaving an open lot. The local planning board expects the removal of the decades-old structure to clear the way for approval of a subdivision that would split the parcel into three smaller lots, each under one acre and with frontage on a nearby street. The town chair described the former building as an eyesore and anticipates three new home sites to be marketed after approvals, with each lot estimated to sell in a modest price band.
Why it matters
The financing platform targets a lending gap in the middle market for construction loans, and the partners’ first loan signals active capital available for new industrial and storage projects in the region. The Quogue village law changes highlight growing local caution around legacy fuel storage and the friction that can arise between small businesses planning infrastructure projects and neighborhood safety concerns. The Southampton listing and local residential transactions show ongoing turnover of commercial and high-end residential property on the East End, while property clearance and subdivision activity demonstrate how demolition can quickly change development options and the local housing mix.
What to watch next
- Follow-up deployments from the new mid-market construction finance platform and whether similar loans appear across the region.
- Further legal action by the propane distributor and any municipal responses or ordinance revisions that could affect energy and fuel storage policy.
- Marketing progress and potential redevelopment plans for the Southampton dealership site and the subdivided East Quogue parcels.
- New construction and resale activity for oceanfront and coastal properties as builders and buyers respond to available finance and local land-use decisions.
Frequently Asked Questions
What is the focus of the new financing partnership?
The partnership targets mid-market first mortgage construction loans for new development projects, with emphasis on sectors like multifamily, industrial and self-storage.
What project received the first loan from the partnership?
The initial loan finances construction of a 217,000-square-foot Class A industrial and self-storage property in Quogue with a loan amount of $47.8 million.
Why was the Quogue underground propane project blocked?
Village trustees amended local law to prohibit retail and bulk storage of certain fuels, such as propane and natural gas, and enacted related restrictions that prevent the planned buried tanks. The proposer has pursued court action seeking damages and further review.
What can the Southampton dealership site be used for?
The three-acre site can accommodate auto dealership operations, retail, or potential medical facility development. A proposed medical building plan exists and the lot includes parking and EV charging stations.
What comes next for the razed East Quogue property?
With the structure removed, the owner is expected to seek subdivision approval to create three building lots that could be sold for residential development.
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Key Features at a Glance
| Item | Details |
|---|---|
| New financing platform | Mid-market first mortgage construction loans combining advisory/insurance capital with construction lending network |
| Inaugural loan | $47.8 million for a 217,000 sq ft Class A industrial and self-storage project in Quogue |
| Quogue propane plan | Underground 3×30,000-gallon tanks proposed; village law amendments now prohibit retail bulk fuel storage; legal challenges ongoing |
| Southampton listing | Former dealership site: 3 acres, 7,900 sq ft building, listed at $13 million; suitable for dealership, retail or medical use |
| Quogue home sale | New oceanfront home closed at $11.75 million; 4,300 sq ft, five en-suite bedrooms, pool, smart systems |
| East Quogue demolition | Former nightclub razed; subdivision to three residential lots expected pending approvals |
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 CA News
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