JS Squared Lands Funding for Watermill Townhouses

James Stanton of World Wide Group, Jeffrey Suchman of Suchman Group and rendering of 66 Nowedonah Avenue at Water Mill NY (World Wide Group, Getty Images, The Water Mill Crossing)

A townhouse development spearheaded by two real estate veterans is set to proceed after securing construction financing.

JS Squared, led by World Wide Group’s James Stanton and Suchman Group’s Jeffrey Suchman, has landed $43 million from Madison Realty Capital, the Commercial Observer reported. The loan is for a 38-house project in Water Mill, a hamlet in Southampton.

The development will have approximately 103,000 salable square feet. Homes at 66 Nowedonah Avenue will feature attached garages, with community amenities including a swimming pool and clubhouse.

Named Watermill Crossing, it was announced earlier this year. According to its website, the resort is expected to open next spring. The website says the homes will be 2,500 to 2,800 square feet in size and include three to four bedrooms and four bathrooms.

They will cost between $2.1 and $2.9 million.

Madison Realty Capital, led by Josh Zegen, has been one of the fastest growing commercial real estate lenders with $20 billion in debt and equity. Earlier this year, the company closed a debt fund of more than $2 billion, giving it ammunition to take on some of the biggest lenders in the industry.

Townhouses will add desperately needed inventory to the East End. In the Hamptons, inventory was down 42% year over year in the first quarter and 16% from the prior quarter, according to a Douglas Elliman report from Miller Samuel. There was only 5.1 months of supply of homes on the market at the end of the quarter.

Meanwhile, sales have declined every year for each of the past three quarters, including 22% in the first quarter. The median sale price rose 8% year-on-year to $1.4 million.

[CO] — HoldenWalter Warner