A townhome development led by two real estate veterans is ready to press on after securing construction financing.
JS Squared, helmed by World Wide Group’s James Stanton and Suchman Group’s Jeffrey Suchman, landed $43 million from Madison Realty Capital, the Commercial Observer reported. The loan is for a 38-house project in Water Mill, a Southampton hamlet.
The development will have roughly 103,000 sellable square feet. The homes at 66 Nowedonah Avenue will include attached garages, with community amenities including a pool and a clubhouse.
Dubbed Watermill Crossing, it was announced earlier this year. According to its website, the complex is expected to open next spring. The website says homes will range from 2,500 to 2,800 square feet and include three to four bedrooms and four bathrooms.
They will be priced from $2.1 million to $2.9 million.
Madison Realty Capital, led by Josh Zegen, has been one of the fastest-growing lenders in commercial real estate with $20 billion in debt and equity deals. At the start of this year, the firm closed on a $2 billion-plus debt fund, giving it ammunition to go toe-to-toe with some of the biggest lenders in the industry.
The townhomes will add desperately needed inventory to the East End. In the Hamptons, inventory was down 42 percent year-over-year in the first quarter and 16 percent from the previous quarter, according to a Douglas Elliman report by Miller Samuel. There was only a 5.1-month supply of homes on the market at the end of the quarter.
Meanwhile, sales declined annually for each of the past three quarters, including by 22 percent in the first quarter. The median sale price rose 8 percent year-over-year to $1.4 million.
[CO] — Holden Walter-Warner