Trd hamptons market report by The Real Deal

Sag Harbor steps up

Modern barns woo hip buyers

Greenport gets Brooklyniﬁed

Starchitects of the East End

Crowdfunding deals on the rise

Hamptons celeb watch

HAMPTONS MARKET REPORT JULY 2015

RENTAL MARKET FALLS SHORT

TOP 10 HAMPTONS BROKERS

MCMANSION KING GOES BIG AGAIN

Season didn’t live up to early hype as many looked to buy instead P10

A ranking of the area’s biggest dealmakers in the luxury market P26

Can skyrocketing land prices slow down proliﬁc developer Joe Farrell? P16

NORTH X 4

HOUSE, POOL AND TENNIS - AMAZING SETTING Water Mill | Price Upon Request | Web# H29167

MODERN IN THE VILLAGE OF BRIDGEHAMPTON Bridgehampton | Price Upon Request | Web# H45151

GRASSY HOLLOW EXCLUSIVE TRADITIONAL East Hampton | Price Upon Request | Web# H43801

CHARMING AND TRANQUIL, SUPERB LIVING Wainscott | Price Upon Request | Web# H45296

THE MOST SPECTACULAR HOMES IN THE HAMPTONS ALL SHARE THE SAME ADDRESS. ASKELLIMAN.COM 2488 MAIN ST, P.O. BOX 1251, BRIDGEHAMPTON, NY 11932. 631.537.5900 | © 2015 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS ARE DEEMED RELIABLE, BUT SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.

SOUTH X 4

HISTORIC LIVING IN SAGAPONACK SOUTH Sagaponack | Price Upon Request | Web# H45300

OCEAN AND PONDFRONT - BEST OF BOTH WORLDS Wainscott | Price Upon Request | Web# H38310

OCEANFRONT BRIDGEHAMPTON Bridgehampton | Price Upon Request | Web# H0147231

2.8 ACRES WITH OCEAN VIEWS Sagaponack | Price Upon Request | Web# H26256

PAUL BRENNAN Lic. Assoc. R.E. Broker

O: 631.537.4144 pbrennan@elliman.com ASKELLIMAN.COM

THE HAMPTONS MARKET REPORT

J U LY 2 0 1 5

EDITOR ’S NOTE

10 RENTER WOES Million-dollar homes sit empty this season

MANSION MADNESS A look at the East End’s priciest sales over the past year

EAST END STARS Ranking the top luxury brokers in the Hamptons

16 MEGA DEVELOPER Joe Farrell’s return to building big

RETAIL SCENE On the North Fork, Greenport is beginning to look a lot like Brooklyn

t’s the Hamptons, so the sun is shining, the waves are beckoning — and the ceiling on home prices can often seem as limitless as those blue, blue skies. In the inaugural issue of our Hamptons Market Report, we feature a town-by-town breakdown of the area’s most expensive sales, which, despite a slightly slow start to this year’s luxury market, still boasted price tags in excess of $40 million (page 20). On the development front, check out how using crowdfunding to build homes is catching fire in the Hamptons (page 52) and how an increasing amount of land is trading hands as builders have grown more confident (page 48). It’s not all clear blue skies, though. We look at how the rental market didn’t quite live up to the early hype this season, when there was talk of Memorial Day through Labor Day rentals nearing the $2 million range (page 10). Meanwhile, we sit down with several scenemakers in East End real estate, including prolific developer Joe Farrell (page 16) — known for his “McMansion” style in the Hamptons — and architecture firm Bates + Masi, who’ve won some 95 awards in the past dozen years (page 42). On the design front, we also examine the latest trend: modern barns. See page 36. And our ranking of the area’s top luxury agents on page 26 will give you a comprehensive look at who’s grabbing the exclusives on the lush property offerings on the table. We also spend some time exploring the growth of Sag Harbor, where more upscale retail, resorts and condos are sprouting up. This being the Hamptons and not Midtown Manhattan, not everyone is so excited about the growth. See page 32. And on the North Fork, we survey the retail scene in Greenport, which retains its small town vibe with a series of new stores that some say emulate a certain popular New York City borough (hint: it’s Brooklyn). That’s on page 40. And check out our roundup of six other Long Island markets beyond the East End for a little less glitz and a little more affordability (page 44). Finally, don’t miss our coverage of all the celebrity real estate wheelings and dealings in the Hamptons (page 56). Among the properties on offer is a $140 million Georgica Pond estate that would rival the Hamptons all-time record of $147 million (which is still the priciest sum ever paid for a home in the U.S.). There’s plenty more valuable information on the East End real estate market inside. Enjoy!

SAG HARBOR GETS SWANKY High-end retail, condos and hotels move in

4 JULY 2015 WWW.THEREALDEAL.COM

Stuart Elliott, Editor-in-Chief

FOUR EXTRAORDINARY MODERN PROPERTIES IN MIAMI, FLORIDA 6 9 9 O C E A N B LV D. M I A M I , F L $36,000,000 ∙ Oceanfront ∙ 23,000 SF+/-

A R T F U L LY C R A F T E D B Y J A C O B A B R A M S O N , M I A M I G O L D E N P R O P E R T I E S ARCHITECTURAL DESIGN BY CHAD OPPENHEIM

4 8 0 O C E A N B LV D. M I A M I , F L

2 5 0 O C E A N B LV D. M I A M I , F L

2 4 0 O C E A N B LV D. M I A M I , F L

$7,700,000 ∙ 9,000 SF+/-

$5,900,000 ∙ 6,000 SF+/-

GENE DUBROVIN Lic. Real Estate Broker C: 917.604.2032 - O: 631.500.9030 gene@bespokerealestate.com

ZACHARY VICHINSKY Lic. Real Estate Broker C: 631.766.0945 - O: 631.500.9030 zachary@bespokerealestate.com

CODY VICHINSKY Lic. Real Estate Salesperson C: 631.926.3948 - O: 631.500.9030 cody@bespokerealestate.com

R E A L

E S T A T E

B E S P O K E R E A L E S TAT E . C O M / J AC O B A B R A M S O N C O L L E C T I O N All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. All rights to content, photographs and graphics reserved to broker. Equal Housing Opportunity Broker. Real estate agents affiliated with Bespoke Real Estate are independent contractor sales associates and are not employees of Bespoke Real Estate. Bespoke Real Estate LLC is a licensed Real Estate Broker. 903 Montauk Highway, Water Mill NY 11976

PUBLISHER AMIR KORANGY

LOOKING FOR LAND

42 Q&A WITH BATES + MASI The award-winning architects talk about their style and what’s happening in the Hamptons market

Developers scrounge for plots as tear down trend continues and pricing skyrockets

GROUP INVESTING

Other companies join Fundrise as crowdfunding’s East End popularity grows

EDITOR-IN-CHIEF STUART W. ELLIOTT EDITORIAL DEVELOPMENT DIRECTOR HEATHER GROSSMANN EDITOR MIRIAM KREININ SOUCCAR ART DIRECTOR ELIZABETH LEKAS CONTRIBUTORS THERESA AGOVINO, ANNE FIELD, C. J. HUGHES, JUDITH MESSINA, KERRY MURTHA, ELAINE POFELDT PRODUCTION MANAGER VICTORIA TUTURICE DIRECTOR OF MARKETING OPERATIONS YOAV BARILAN NATIONAL ADVERTISING DIRECTOR ROSS FOX

HAMPTONS ADVERTISING DIRECTOR JUNAID ZAHID ADVERTISING SALES NICKI CHADI, CHRIS CUOMO, ERAN EVRON, MARCUS GUEST, BARRY HOLLAND, SIGALIT LEVI, NICK MASCARO, JUSTIN O’GARROW, ERIC REYES, ROBERT STEARNS

GOING FARM-TO-LOFT More and more “modern barns” are being designed for the younger Hamptons crowd

MARKETING MANAGER JUDY LEVINE WEB DEVELOPER AMIR GHAHERI FINANCE DIRECTOR/HUMAN RESOURCES KENNETH CYRUS

ACCOUNTING ASSOCIATE KAREN FRANCIS OFFICE MANAGER VIRGINIA DURSO CIRCULATION PAUL DESTANKO DISTRIBUTION MITCHELL NEWMAN, PATRICIA HOFMANN, FORERO EXPRESS ATTORNEY BARRY J. FRIEDBERG TRACHTENBERG RODES & FRIEDBERG LLP

CELEB SCENE The sale of Renée Zellweger’s East Hampton home was one of many star deals on the East End over the past year 6 JULY 2015 WWW.THEREALDEAL.COM

OUTSIDE THE HAMPTONS A roundup of how the real estate markets are faring in other notable Long Island towns

ACCOUNTANTS WILLIAM T. MCCALLUM, CPA, P.C., CHRISTINE WANG

The Real Deal is a registered trademark of Korangy Publishing Inc. Copyright © 2015. Call 212-260-1332 or e-mail news@ therealdeal.com. Warning: It is illegal to photocopy or reproduce any part of The Real Deal without express written consent. For reprints and duplication rights, call 212-260-1332. Principal ofﬁce: 158 West 29th St., New York, NY 10001. The Real Deal is published monthly. Annual subscriptions cost $95. Send check or money order to 158 West 29th St., New York, NY 10001.

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L U X U RY H A M P TO N S

Bridgehampton | $14.995M | 2 Acres | 15,000 SF+/- | WEB#H30714 23westpondbridgehampton.com

Southampton Village | $11.9M | 1.91 Acres | 6,000 SF+/- | WEB#H41227 oxpastureroadsouthampton.com

Water Mill | $9.995M | 1.75 Acres | 6,100 SF+/- | WEB#H36026 wheatonwaywatermill.com

Water Mill | $9.995M | 2.7 Acres | Room for 10,000 SF+/- Home | WEB#H05296

Southampton | $6.995M | .50 Acres | 6,200 SF+/- | WEB#H21807 732hillstreetsouthampton.com

Wainscott | $6.995M | .50 Acres | 7,300 SF+/- | WEB#H13271 28wainscotthollow.com

MATTHEW BREITENBACH LIC. ASSOC. R.E. BROKER O: 631.537.6590 | C: 631.255.6221 matthew.breitenbach@elliman.com mattbreitenbach.com

R E A L E S TAT E

Southampton | $5.995M | 1 Acre | 5,000 SF+/- | WEB#H45939

Water Mill | $3.995M | 2 Acres | 6,000 SF+/- | WEB#H42513

Southampton | $1.895M | .26 Acres | 3,050 SF+/- | WEB#H30661

Southampton | $1.995M | $550K Per Lot | 5.7 Acre | 3 Single and Separate Building Lots

Sag Harbor | $2.995M for Land with building permits in place for 4500 sq. ft. house, Pool, and Pool House | $5.995M Pre-Construction for 4500 sq. ft House, Pool, and Pool House

Bridgehampton | $100K Short Term Rental | 1 Acre | 6,500 SF+/- | WEB#H97128

ASKELLIMAN.COM 575 MADISON AVENUE, NY, NY 10022. 212.891.7000 | © 2015 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HERIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS ARE DEEMED RELIABLE, BUT SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.

R E N TA L S N A P S H OT

Hamptons Market Report

Rental market didn’t meet the hype Million-dollar pads sit empty as more people choose to buy in the Hamptons BY ELAINE POFELDT

fter all the hype around record rental pricing in the Hamptons at the beginning of the season, some property owners who were hoping to bring in the big bucks for their mansions were disappointed. In fact, with a growing number of people choosing to purchase a summer home this year, several rentals hit the discount bin. “This year is what I would call the perfect storm in a bad way for rentals,” said Judy Desiderio, president and broker at Town & Country Real Estate on the East End. “Sales and rentals are always

The interior of the Sandcastle Estate.

“This year is what I would call the perfect storm in a bad way for rentals.” — Judy Desiderio, Town & Country Real Estate inversely related. Right now the sales are off the charts. We haven’t been this busy since before the crash,” she said. 10 JULY 2015 WWW.THEREALDEAL.COM

In a typical year, Desiderio usually handles more than 500 rentals. She said that number was down 23 percent this year. The bulk of the downward price pressure is affecting less expensive properties where the asking rental price ranges from $50,000 to $150,000 for July through Labor Day. In those cases, rental prices are being discounted by 20 to 25 percent. “If it hasn’t been updated and the furniture is the same as the last eight to 10 years, they are going to discount it,” Desiderio said. “Because there is so much inventory right now, the tenant knows instantly if the house is tired and reacts to that.” Desiderio estimates the average rental price of the 13,000 houses in her ﬁrm’s database is in the $70,000 to $100,000 price range for two months.

But many rentals are going for much lower. Among an estimated 8,000 rentals listed for Memorial Day through Labor Day, the median asking price was $45,000, according to a report released in late April by Convergex, a global brokerage. The cost of renting differs greatly if the house is north or south of Route 27. South of the highway, on the ocean side, prices start at $200,000 and go up to $1 million. On the north side, someone willing to spend $100,000 for two months would likely get a four- or ﬁve-bedroom house with a swimming pool. However, there is less price pressure for rentals that go for $500,000 and up. Brokers say that owners of more expensive properties will simply choose not to rent if they don’t get their asking price. “If you CONTINUED ON PAGE 12

BRIDGEHAMPTON, NY | $18,500,000 | Web ID: 0056274 Nearly 3 acres on Ocean Road is the site for this just-finished extraordinary residence, now a major estate in Bridgehampton South. The 9100+/- sq.ft. shingled traditional home features stunning gathering rooms, chef’s kitchen, 8 fireplaces, elevator, wine cellar, gym, plus tennis, salt water Gunite pool with spa, pool house, and generator.

Harald Grant Senior Global Real Estate Advisor I Associate Broker d: 631.227.4913 c: 516.527.7712 harald.grant@sothebyshomes.com SOUTHAMPTON Brokerage 50 Nugent St. I Southampton, NY 11968 I 631.283.0600

sothebyshomes.com/hamptons

Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc.

R E N TA L S N A P S H OT

Hamptons Market Report

379 Ocean Road has not been rented for July, but was recently booked for August.

are looking at that million-dollar listing, they are going to rent it at that number and not discount it,” said Desiderio. “How many homeowners are going to part with their beautiful oceanfront mansion?” Indeed, the Sandcastle Estate, on 11.5 acres in Bridgehampton at 612 Halsey Lane, was still listed for $1 million a month for July and August on Hamptons Real Estate Online, as of mid-June. And an

CONTINUED FROM PAGE 10

eight-bedroom oceanfront mansion on Two Mile Hollow Road in East Hampton was going for $1.6 million for the summer season; however, with no takers so far, its owners are willing to negotiate. Meanwhile, a brand new seven-bedroom manse built by prominent development company REEC, at 379 Ocean Road in Bridgehampton, is still available for the month of July for $300,000, according to Sotheby’s International Realty broker Harald Grant. Those properties may not find renters this summer, as more people rush to buy. Real estate executives say the flurry of sales stems from buyers who now feel confident that the economy will remain strong and are worried interest rates may creep up. The biggest growth in the sales market is in the $1 million to $5 million range, says Jonathan Miller, president and CEO of Miller Samuel Inc., whose real estate appraisal firm provides market reports for brokerage Douglas Elliman. A recent report done by the firm found that the average Hamptons sales price rose

The owners of this manse on Two Mile Hollow Road wanted $1.6 million for the season.

from $1.70 million in the first quarter of 2014 to $1.76 million in the first quarter of 2015. In some communities, the number of sales was already ticking up in the first quarter. A Town & Country report said East Hampton saw a 4 percent increase year over year, and East Hampton Village saw a 14 percent increase . “The rental market is weaker this year because the buyers that last year would have been on the fence this year are just buying,” said Miller. TRD

2488 MAIN ST, P.O. BOX 1251, BRIDGEHAMPTON, NY 11932. 631.537.5900 | © 2015 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS ARE DEEMED RELIABLE, BUT SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.

GREAT OPPORTUNITY FOR BUILDERS AND INVESTORS IN AMAGANSETT

MODERN BEACH HOUSE AND 3 LOTS | Lot 1: $4,745,000 | Lot 2: $4,745,000 | Lot 4 with Beach House: $6,700,000 | Lot 7: $5,250,000 Last opportunity to buy 3 of the last remaining oceanfront properties in Amagansett with all approvals. Enjoy sunrise views over the Atlantic Ocean and sunset views overlooking Napeague Bay to Gardiner’s Island. 5 minutes to the west is Amagansett town, Montauk 5 minutes to the east and 10 minutes to the west is East Hampton Village. Folio#s 84374, 84375, 79553 & 79634

WILLIAM WOLFF Lic. Assoc. R.E. Broker

O: 631.267.7345 | C: 917.549.0617 wwolff@elliman.com

12 JULY 2015 WWW.THEREALDEAL.COM

ASKELLIMAN.COM

MECOX BAY MODERN BRIDGEHAMPTON Co-Exclusive. Designed by a world-renowned architect, this new, brilliantly conceived and built Modern home presents crisp, clean lines, open spaces and expansive windows providing panoramic views of both the bay and the ocean. Five bedrooms, 5 baths, elevator, 3 ﬁreplaces. The 2.4± acre grounds feature over 300’ of frontage, and an inﬁnity-edge gunite pool. $24,995,000. WEB# 52008.

ANDREA L. ACKERMAN 631.537.4340 l aackerman@bhshamptons.com

MECOX FARM WATER

MILL SOUTH

Co-Exclusive. Exquisite, sophisticated top-level design defines this 12,000± sf mansion by James Michael Howard. With ultra-fine finishes and details, the home is sited on a vast 3± acre parcel 200± yards from the water and has it all. 74’ radiant heated saltwater infinity pool, spa, and pool house. The house is offered completely furnished and decorated. $24,950,000. WEB# 22729.

MARTHA P. GUNDERSEN 631.903.6131 I mgundersen@bhshamptons.com

STUNNING OCEANFRONT QUOGUE Co-Exclusive. This stunning home, renovated throughout, is perfectly situated with every room having a view of the ocean or bay. The 5,900± sf house is sited on 2.9± acres with an impressive 206± feet of oceanfront. 6 en suite bedrooms. Free form heated gunite pool. $9,900,000. WEB# 37907.

LAUREN A. BATTISTA 631.288.5534 l lbattista@bhshamptons.com

BROWNHARRISSTEVENS.COM

• THE HAMPTONS • NEW YORK CITY • PALM BEACH

All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. Equal Housing Opportunity Broker. Brown Harris Stevens of the Hamptons, LLC. 27 Main Street East Hampton, NY 11937 • 631.324.6400

INTRODUCING THE 2015 ISSUE OF

REAL ESTATE MARKET REPORT

The Evolution of South Florida’s Real Estate Market: How the Game has Changed The South Florida real estate market conversation now takes place

This year’s report was prepared in conjunction with Integra Realty

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Resources – Miami\Palm Beach, one of the nation’s leading real

2010 TRENDS market report, it is stated that the general mood at

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the time was a sense of cautious optimism. Fast-forward to 2015,

these markets without the typical hyperbole or marketing fanfare

its year-to-year improvement has made South Florida one of the

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most sought-after residential markets in the world.

dynamic housing markets in the United States today.

Miami | Single-Family Home Market

2010

2011

2012

2013

2014

$14,486,000

$15,184,000

$18,274,000

2014

$17,120,000

2013

N/A

2012

Avg. Home Price Trendline h

2011

$6,817,000

2010

$6,628,000

2014

$5,923,000

2013

$6,750,000

2012

Avg. Home Price Trendline h

2011

Avg. Home Price Trendline h

2010

$6,435,000

Average Home Price

$1,883,000

Average Home Price

$1,871,000

Average Home Price

$1,849,000

$10M+ Transactions

$1,878,000

$5M to $10M Transactions

$1,856,000

$1M to $5M Transactions

YOUR TOP RESOURCE FOR SOUTH FLORIDA REAL ESTATE. PLEASE VISIT ONESOTHEBYSREALT Y.COM/TRENDS TO ACCESS THE FULL REPORT. Statistics provided by Integra Realty Resources – Miami\Palm Beach. The information contained herein is deemed accurate but not guaranteed.

Spotlight: The Miami Real Estate Market Miami: Through a Global Lense

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Miami | Condominium Market

2011

2012

2013

2014 $10,975,000

2010

$12,050,000

2014

$27,000,000

2013

$11,500,000

2012

N/A

2011

Avg. Home Price Trendline h

2010

$6,371,000

2014

$6,080,000

2013

$6,042,000

2012

Avg. Home Price Trendline h

2011

Avg. Home Price Trendline h

$1,673,000

2010

$6,634,000

Average Home Price

$6,538,000

Average Home Price

$1,827,000

Average Home Price

$1,705,000

$10M+ Transactions

$1,699,000

$5M to $10M Transactions

$1,906,000

$1M to $5M Transactions

877.630.8155 INFO@ONESOTHEBYSREALT Y.COM AVENTURA

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IN PROFILE

HAMPTONS MARKET REPORT

McMansion king goes big again Hamptons developer Joe Farrell ramps up big-ticket homes after recession slowdown, but land shortage could crimp operations BY ANNE FIELD

oe Farrell is back — back, that is, to building the super-sized, deluxe Hamptons spec homes that were his trademark before the crash. Recently, in addition to the 4,000-squarefoot homes costing $3 to 5 million he largely built for a few years after the ﬁnancial meltdown, Farrell’s prices and square footage have crept up. Now, two of his properties on the market are selling in the $15 million and $20 million range, including an 8,600-square-foot manse on two acres in Bridgehampton across from a golf course. About 16 of his homes are priced in the $5 million to $15 million range. “We go where the buyers are,” said Farrell, president of the Bridgehampton-based Farrell Building Company. It’s no surprise that buyers are willing to spend again. Overall, average luxury residential prices for the Hamptons reached $7.67 million in 2014, up from $6.22 million in 2010, according to the Corcoran Group. But scarcity of land has led Farrell to satisfy demand for his enormous, newlyconstructed dwellings by building north of Route 27. “Very wealthy people who could live anywhere are moving north,” he said. “They want a big piece of land and that doesn’t exist south of the highway.” Even with the larger, pricier homes, Farrell has kept the vast scale of his operation the same, churning out large numbers of houses at a rapid pace. He has 32 spec homes in various stages of the sales process with about 25 in contract, all of them turned out by an inhouse staff of 50 architects, contractors and

16 JULY 2015 WWW.THEREALDEAL.COM

other employees. He also owns an excavator, a masonry and a carpentry company. He produces a newly minted mansion in six months to a year, many of which are sold before they’re ﬁnished. Last year, Farrell sold 39 houses for close to $200 million, making him the biggest residential developer on the East End. Since leaving his job on Wall Street as a commodities trader and setting up shop in 1996, Farrell’s company has built more than 400 homes worth over $1 billion. “He works on a big scale. He has his own team. And he really has changed

Developer Joe Farrell

THE COMPETITION The lucrative spec market is getting crowded Other spec builders in the Hamptons lack Farrell Building’s heft, but they are flooding the market. M&M Custom Houses has been building spec homes in the Hamptons for about 16 years, but in the last two years business has skyrocketed. In the past 12 months, the Westbury, New York-based company had about $35 million in sales, up from $15 million in 2010, according to partner Michael Axelrod. The houses sell for between $3 million to $11 million and range in size from 5,000 square feet to 9,000 square feet. M&M just sold three houses and recently bought five lots in Bridgehampton. James Michael Howard, a Jacksonville, Florida-based company, entered the Hamptons in 2007. Owner and interior designer James Howard produces a complete package, down to floor coverings, furniture and knickknacks. He’s sold three homes and has three in various stages of construction, including a $25 million, 12,000-squarefoot mansion in Water Mill designed to look like an English country house with a hip interior. Howard resists being called a spec builder however, preferring to call himself a “designer.” Michael Davis Design & Construction, a top-of-the-line custom builder in Wainscott, rarely does spec anymore. But it started out selling high-end spec houses more than 20 years ago. Now, Davis does about six custom homes a year. Its most notable current project is a 20-acre family compound with multiple houses in Bridgehampton, with an average home at 6,000 square feet, and with prices ranging from $10 million to $20 million. - Anne Field

CONTINUED ON PAGE 18

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HAMPTONS MARKET REPORT

the way things are done in the Hamptons,” said Gary DePersia, a broker with The Corcoran Group in East Hampton. Not everyone likes the change. His ubiquitous cookie-cutter design, with cedar shakes and gambrel roofs, among other features, has led detractors to dub Farrell the builder of Hamptons-style McMansions. “I wish there was more differentiation between the houses he builds,” said a Hamptons broker who didn’t want to be named. “It’s why people talk about the Farrellization of the Hamptons,” the broker said. For his part, Farrell dismisses such criticism as sour grapes. “When you’re on top, there are always people who are going to criticize you,” he said. “But the true test is what customers say.” In fact, according to Farrell, that sameness is an important part of his appeal. It’s especially important for selling homes on spec, often before construction has begun. “People know what to expect,” he said. “They know our brand.” Even Farrell’s competitors admit the mega-builder has been a positive force in the industry. “A lot of his houses look alike but that doesn’t make them bad,” said Michael Axelrod of M&M Custom Houses. “He does a very nice job building high-end homes.” Uber-developer Michael Davis said Farrell has “undoubtedly ﬁlled a niche in the market.” Bonny Aarons, a real estate agent with Douglas Elliman in East Hampton, said her clients ask for his houses. “He gives buyers a lot for their money,” Aarons said. Those buyers include a roster of such celebrities as Madonna, Kelsey Grammer and Rudy Giuliani. Farrell spent the years before the crash selling homes in the $7 million to $20 million range. But, according to Farrell, he saw the writing on the wall and, before the market imploded, he sold almost all his properties. During the recession, he built a $43 million, 17,000-square-foot mansion in Bridgehampton, which he and his family moved to. He said he built it mostly to keep his staff occupied. Now he usually rents it for two weeks every summer. In 2012, his tenants were Beyoncé and Jay Z, who leased the house for $400,000 a month during their stay. 18 JULY 2015 WWW.THEREALDEAL.COM

CONTINUED FROM PAGE 16

Joe Farrell’s signature interior at 280 Highland Terrace in Bridgehampton.

When he dove back into business in 2011, he decided to move to the lower end of the luxury market, churning out $3 million to $7 million homes and an occasional $10 million pad. It’s just in the last year or so that he A typical Farrell design at a house on Mecox Road in Water Mill. decided the demand was there for bigger, much pricier mansions. year, he made a big push in Amagansett, Many of those are being built north of the selling 15 houses in the $5 million to $9 highway. Since it’s farther from the ocean, the million range. This year, however, he has only area traditionally has been regarded as less two homes in that area. desirable. But a number of builders have been In the past few years, Farrell has started to turning northwards recently as land becomes face stepped-up competition from other spec increasingly difficult to find. About half of builders, but he insists he’s not concerned. “When the market is good, you’re doing a Farrell’s inventory is located in those areas — for example, several two to four-acre lots on a good job and giving people value, the other horse farm in Water Mill that is north of the companies don’t affect us,” he said. The recent highway are currently for sale. The 7,500- to trend for Wall Streeters to stay in New York 8,000-square-foot homes on them are selling City and, rather than move to the suburbs, for $8 million to $10 million. buy a house in the Hamptons also works in That shortage of, and fierce competition his favor, according to Farrell. for, land may be Farrell’s most intractable Still, Farrell’s love affair with the challenge for now. “I haven’t seen land Hamptons may be waning. He is branching this tight in my career,” he said. With out into new markets and is about to break opportunities to buy dwindling, Farrell is ground on an 800-unit storage facility in Port focusing on selling his inventory rather than Jefferson, New York, and a 160-unit multibuying more lots, at least until the fall. family building in Newburgh, about an hour Because of the scarcity of available land, and a half from New York City. And he plans Farrell’s focus also continues to be on Water to construct more such buildings. Mill, Bridgehampton and Sagaponack. Last “You’ve got to keep moving,” he said. TRD

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Hamptons Market Report

Hot in the Hamptons A look at the priciest home sales in five of the South Fork’s best-known towns BY KERRY MURTHA

s the summer kicks into full gear, the residential market on Long Island’s East End continues to enjoy relatively robust prices, thanks to both the economy and the continued low interest rates. The median first quarter sales price in the Hamptons rose 4.6 percent to $920,500 from the same period last year, according to a report by Douglas Elliman, and sales activity increased 2.5 percent. Luxury inventory in the Hamptons fell 42 percent, amid increased demand for highend homes. Without a significant new supply of homes entering the market and with land so scarce, this trend is expected to continue. The priciest deal of the past 12 months was the $55 million sale of 101 Lily Pond Lane in East Hampton. The 5,500-squarefoot property — which also includes a threebedroom guest house, tennis court, small spa and pond — was snatched up by frequent Hampton buyer Scott Bommer, founder of hedge fund SAB Capital, who is known for flipping properties. East Hampton’s highest profile deal was the sale of actress Renée Zellweger’s

beach house, which traded in November for a quarter of a million dollars more than the $4.45 million asking price. Zellweger bought the four-bedroom farmhouse at 30 Egypt Lane for $2.15 million in 2003 and sold it to Jeffrey Geller, an orthopedic surgeon, and Leigh Geller, a former Manhattan assistant district attorney. The listing broker was Douglas Elliman’s Linda Haugevik. But offerings on the East End aren’t limited to exorbitantly priced homes or celeb deals. “With properties at various price points, there is wide appeal,” said Beate Moore, a senior global advisor with Sotheby’s International who currently has 18 listings in the Hamptons ranging from $2 million to $35 million. She took ﬁfth place in The Real Deal’s ranking of top Hamptons luxury brokers on page 26. Moore helped broker Southampton’s most lucrative sale over the past year when she represented James Tisch, the hotel mogul and CEO of Loews Corporation, who shelled out $41 million for an 11-room oceanfront estate at 576 Meadow Lane.

The town of Southampton saw an 8 percent jump in sale prices this past year, according to a report from Saunders & Associates, thanks in part to Sag Harbor, which has become increasingly popular in recent years. Sag Harbor is home to two new luxury condominium complexes — Watchcase, where 64 lofts, townhouses and bungalows are being converted from an historic 1881 Bulova factory; and Harbor’s Edge, a project with 15 twoand three-bedroom units that will range in price from $2.5 to $6.5 million. Both offer swimming pools, ﬁtness centers and spectacular views. More than a third of the 64 units at Watchcase, which are priced between $1 and $10 million, have already gone into contract. Completion is scheduled for next winter. Brokers say the new condos appeal to Hampton homeowners looking to downsize, longtime renters looking to buy and Europeans who don’t want to be tied down by homeownership. In fact, homes in the $1- to $5-million range are the hottest properties on the

MOST EXPENSIVE SALES

East Hampton 2

420 Further Lane

$21.5 million

Ed Petrie and Julie Wolfe, Sotheby’s International

93 Lily Pond Lane

$18.9 million

Fred Butti, Sotheby’s International

4 1

101 Lily Pond Lane Ed Petrie, Sotheby’s International

20 JULY 2015 WWW.THEREALDEAL.COM

18 Lee Avenue

$14.75 million

Ed Petrie and Frank Newbold, Sotheby’s International

$55 MILLION

80 Further Lane

$12.36 million

N/A

CONTINUED ON PAGE 22

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Ocean Road Bridgehampton. Nearly 3 acres on iconic Ocean Road hosts a sensational new 7 bedroom manse, now exquisitely furnished, which is LM[\QVML \W JMKWUM WVM WN \PM [QOVQĂ&#x2026;KIV\ M[\I\M[ WN *ZQLOMPIUX\WV ;W]\P )V ITTMM WN [\I\MTa 4QVLMVÂź[ NWZU[ I KIVWXa IJW^M I OI\ML LZQ^M XI[\ \PM ITT _MI\PMZ Âź @ Âź \MVVQ[ KW]Z\ [M\ _Q\PQV \PM NZWV\ TI_V \W I ! ;. [PQVOTML \ZILQ\QWVIT _IZUML Ja Ă&#x2026;ZMXTIKM[ IVL PI^QVO ITT \PM Ă&#x2026;VQ[PM[ IVL IUMVQ\QM[ \PI\ PI^M JMKWUM \PM PITTUIZS WN I OZIVL 0IUX\WV[ M[\I\M ) OTI[[ML MV\ZIVKM ^M[\QJ]TM WXMV[ \W I Âź PQOP paneled foyer that sets the tone for this masterfully built and handsomely appointed residence beyond which lies a great room, living room, wood paneled library, dining room and an expansive state of the art kitchen with butlers pantry and adjacent morning room, all warmed by Ă&#x2026;ZMXTIKM[ ) JZMISNI[\ XI^QTQWV _ZIXXML QV OTI[[ IVL XW_LMZ ZWWU[ KWUXTM\M \PM [\ Ă&#x2020;WWZ =X[\IQZ[ \PM OZIVL UI[\MZ _QVO ZMQOV[ \W \PM [W]\P Wâ&#x20AC;ŤŮşâ&#x20AC;ŹMZQVO [Q\\QVO ZWWU _Q\P Ă&#x2026;ZMXTIKM I XZQ^I\M \MZZIKM TIZOM _ITS QV KTW[M\ IVL T]`]ZQW][ JI\P ) R]VQWZ UI[\MZ []Q\M \W \PM VWZ\P _Q\P Ă&#x2026;ZMXTIKM IVL KW^MZML \MZZIKM Q[ RWQVML Ja NW]Z ILLQ\QWVIT JMLZWWU[ _Q\P JI\P[ ITT MV[]Q\M )V MTM^I\WZ ZMIKPM[ IV ILLQ\QWVIT ;. Ă&#x2026;VQ[PML TW_MZ TM^MT _PQKP QVKT]LM[ [\Iâ&#x20AC;Ť Ůşâ&#x20AC;ŹY]IZ\MZ[ TQ^QVO ZWWU KWUNWZ\IJTM PWUM \PMI\ZM _QVM KMTTIZ IVL I \Z]M [XI M`XMZQMVKM _Q\P OaU [\MIU IVL [I]VI /MW\PMZUIT PMI\QVO X]JTQK _I\MZ IVL X]JTQK OI[ _PQKP XW_MZ[ I _PWTM PW][M OMVMZI\WZ ILL \W \PM XZWXMZ\aÂź[ uTIV ) ]VQY]M KIZ OIZIOM _Q\P XWZ\M KWKPMZM PW][M[ ITT \PM \Wa[ _Q\P WX\QWVIT PaLZI]TQK KIXIKQ\a NWZ ILLQ\QWVIT ^MPQKTM[ ) KW^MZML KW]Z\aIZL _Q\P W]\LWWZ SQ\KPMV IVL Ă&#x2026;ZMXTIKM RWQV[ _Q\P ;. WN [\WVM XI\QW[ \PI\ W^MZTWWS \PM Âź @ Âź [IT\ _I\MZ /]VQ\M XWWT _Q\P [XI XWWT PW][M IVL []UX\]W][ landscaping on an already private shy 3 acre lot. Inquire about various rental time frames. Co-Exclusive. $18.5M WEB# 27073

Southampton to Montauk...Sagaponack to Shelter Island The Hamptons for Buyers, Sellers, Renters & Investors

GARY R. DePERSIA Licensed Associate Real Estate Broker m:516.380.0538 | gdp@corcoran.com

LUXURY MARKET

Hamptons Market Report

market throughout the East End, accounting for 38 percent of sales in the ﬁrst quarter of 2015, up from 36 percent last year, according to a report from Corcoran. “Lower interest rates are prompting many people who have previously rented homes for the summer to make an investment,” said Joan Hegner, a broker with Corcoran in Montauk.

CONTINUED FROM PAGE 20

Hegner sold Montauk’s priciest property — at $7.8 million — in May. The four-bedroom house at 380 Old Montauk Highway was designed by Robert A.M. Stern. In January, Hegner sold a two-bedroom home at 66 Surfside Avenue for $7.5 million. But one- and two-bedroom ranch homes in Montauk can still be had for less than $1 million.

MOST EXPENSIVE SALES

“I don’t think Montauk has yet hit its stride,” said Paul Brennan of Douglas Elliman, who is handling Montauk’s priciest listing by far: Andy Warhol’s $85 million estate at 16 House Cliff Drive. “Montauk is today what Sag Harbor was 10 years ago,” Brennan said. “But changes are coming.” TRD

MOST EXPENSIVE SALES

Amagansett Southampton 1

32 Marine Boulevard Janette Goodstein and Bonny Aarons, Douglas Elliman

59 Meeting House Lane

$6.3 MILLION $6.28 million

Beate Moore, Sotheby’s International

Arlene Reckson, Corcoran

4 Old Station Place 3 Old Station Place

$5.7 milion

6 Old Station Place

$37.5 million

616 Ox Pasture Road

$37 million

Michaela Keszler, Douglas Elliman

$5.48 million

Gary DePersia, Corcoran

1116 Meadow Lane

$41 MILLION

Tim Davis, Corcoran

Gary DePersia, Corcoran

576 Meadow Lane

390 Fowler Street

$32.5 million

Harald Grant, Sotheby’s International

$5.45 million

Gary DePersia, Corcoran

1820 Meadow Lane

$25 million

Evan Kulman, Corcoran

MOST EXPENSIVE SALES

Montauk

Westhampton

380 Old Montauk Hwy Joan Hegner, Corcoran

66 Surfside Avenue

$7.8 MILLION $7.5 million

Enzo Morabito, Douglas Elliman

Joan Hegner, Corcoran

84 Surfside Avenue 139 Deforest Road

$7 million

22 Prospect Hill Lane Joan Hegner, Corcoran

5 Bay Meadow Lane

$5.04 million

$2.3 million

44 Apaucuck Point Lane $1.54 million Enzo Morabito, Douglas Elliman

$3.7 million

6 Plume Grass Way N/A

Source: TRD research and analysis of data from Property Shark and Zillow over the past 12-month period. Only listing brokers were included on the chart where that information was available.

22 JULY 2015 WWW.THEREALDEAL.COM

$2.93 million

N/A

6 Pine Tree Lane

$2.98 MILLION

N/A

Rylan Jacka, Sotheby’s International

27A Brushy Neck Lane

$1.45 million

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BROKER RANKINGS HAMPTONS MARKET REPORT

From left: Top broker Tim Davis with third-ranked Susan Breitenbach and Harald Grant, who has the number two spot.

The Hamptons’ top 10 luxury real estate agents A ranking of the area’s biggest dealmakers by volume of listings BY THERESA AGOVINO

ike the constant flicker emitted from the Montauk Point Lighthouse, there are some things one can always depend on in the East End. Among these articles of faith are that a handful of brokers usually wind up with the fanciest listings, the types of properties that boast multiple structures, spare-noexpense finishes and panoramic water views — and that come with at least sevenfigure price tags. Indeed, the top-10 residential brokers in The Real Deal’s roundup, which examined who had the biggest share of exclusives and

26 JULY 2015 WWW.THEREALDEAL.COM

co-exclusives of $5 million or more, turned up many familiar faces. The number-one slot, for instance, went to Tim Davis, of the Corcoran Group, a 30-plus year Hamptons veteran. But lately, some of these same faces might be a tad less cheerful. While overall the Hamptons housing market enjoyed robust conditions, the high-end market was soft in the ﬁrst quarter, and the sales statistics from the just-ended second quarter are expected to show more of the same, brokers say. In the ﬁrst quarter, the median sales price in the luxury segment — the top 10 percent of deals —was $5.5 million, according to

Douglas Elliman, which was down 21 percent from the fourth quarter of 2014, when the median was about $7 million. The price was also down slightly from the first quarter of 2014, when the median was $5.7 million. “We’re vulnerable to changes in the world economy,” said Diane Saatchi, an associate broker with Saunders & Associates, who came in at No. 8 with $171 million in listings. But if the luxury market is meh, sellers don’t seem to have gotten the message — the prices are still steep. Davis, the decisive first-place finisher with about $615 million in listings in early June,

B ROOSK EM R ORLAON R KE I NPG S Hamptons Market Report

81 Briar Patch, listed by Peter Turino

for example, has nine homes at $20 million or more, plus two others that were likely in that range but were listed at undisclosed prices on his website. Davis declined to comment on the rankings. Chief among these pricey listings is Villa Maria at 51 Halsey Lane in Southampton, a co-exclusive that Davis shares with other agents, including Sotheby’s Harald Grant (ranked #2). That 1919 home, which actually comes with a total of four-contiguous lots and could present development opportunities, brokers say, is listed at $85 million, which makes it the Hamptons second mostexpensive listing. Grant, meanwhile, had $419 million in properties for sale. Besides Villa Maria, his exclusives include a six-bedroom bluffside estate in North Haven called Angel View, at 6 Bay View Court. It’s at $49 million. Still, Grant noted that the market seemed slow. “No one has to buy a house in a secondhome market,” said Grant, who blamed the slowdown on a weak Euro. In third place was Susan Breitenbach of the Corcoran Group, who had $366 million in total listings. Topping her list is a 15,000-square-foot contemporary on Sagg Pond, in Sagaponack, at 207 and 217 Highland Terrace. A co-exclusive with Saatchi, of Saunders, the home, which is under construction and is unlikely to be ready before August, is listed at $43 million, but can be sold in two parcels. Next on the list is Gary DePersia, who has been involved with $1.5 billion in deals in the Hamptons since 1995, according to

207 and 217 Highland Terrace, listed by Susan Breitenbach

his official bio. In June he had nearly $277 million in listings. In terms of specific submarkets, East Hampton remains sluggish, DePersia said, echoing comments from other brokers. Some said a new traffic light in Wainscott has made summer traffic on Route 27 even slower than usual, making the trek out to East Hampton that much more arduous. But Montauk, which is even farther east, seems be faring okay, brokers say. DePersia says print advertising helps him nab so many properties — he has a hefty

“No one has to buy a house in a secondhome market.” — Harald Grant, Sotheby’s International Realty

three-dozen listings or so for $5 million and above. “It’s hard to miss me out there,” he said; repeat clients help, too. Beate Moore, an associate broker with Sotheby’s International Realty, had $235 million in listings, to earn a ﬁfth-place ﬁnish. Her priciest, an exclusive, is 321 Gin Lane in Southampton, an oceanfront four-bedroom on nearly three acres at $35.5 million. But since it came on at $39 million this spring, the house has been discounted twice. “I think the prices will continue to come

down, but that’s not necessarily negative,” Moore said. “Everybody thinks they can just slap a house deal together, and it doesn’t work that way.” In sixth place was Michaela Keszler, an associate broker with Douglas Elliman, who had $227 million in listings. Among them is an exclusive for the getaway belonging to actor Richard Gere, a six-acre estate at 26 North Colony Road in North Haven, which is listed at $47.5 million. Called Strongheart Manor, and built in 1902, the property, which has a 12-bedroom main house, hit the market initially at $65 million in 2013, when it was listed with Sotheby’s. Keszler did not return a call for comment. Next on the list is Peter Turino, an agent with Brown Harris Stevens, whose $207 million in properties netted him a seventhplace slot. Though with just nine qualifying listings, his largest exclusive is a doozy, an 11-acre spread on Georgica Pond, at 90 Briar Patch Road in East Hampton Village, going for $140 million. Called Briar Patch, the estate, which boasts 1,156 feet of pond frontage, has a renovated Depression-era home, as well as a 60-foot swimming pool and four-car garage, and is subdivided, so developers may ﬂock. Chris Whittle, who founded the Avenues private-school chain, put it on the market with Turino last November, and Briar Patch has not undergone any price cuts since. Turino could not be reached for comment. In eighth was Saatchi, of Saunders, with $171 million, which included another Briar WWW.THEREALDEAL.COM JULY 2015 27

BROKER RANKINGS

HAMPTONS MARKET REPORT

Patch property, at No. 81, which is listed at about $29 million. Also facing Georgica Pond, the property contains a 10,000-square-foot main house that incorporates the remnant of a Stanford White-designed balcony-lined studio that has been re-oriented to face the water. A 2,000-square-foot, two-bedroom guest house is also on the property, whose developer was Jeffrey Collé . The Briar Patch estate has been around, too. In 2010, Corcoran listed it for about $40 million; Saunders picked up the listing last fall. “East Hampton is like our Upper East Side,” Saatchi said. “It doesn’t have the vibe or hipness of Sagaponack or Montauk.”

Indeed, she added, the area, along with Amagansett, had the lowest absorption rate in the Hamptons in June. In the ninth spot is Erica Grossman, a saleswoman with Douglas Elliman. She had seven qualifying luxury listings, at $108 million. The biggest of the bunch: a 6,700-square-foot house designed by Francis Fleetwood in 2003, on Squabble Lane in Southampton, at $40 million. Davis, of Corcoran, is the co-lister. The house, with both pond and oceanfront frontage, was initially listed at almost $46 million a year ago and went into contract last summer, according to

news reports. But it’s unclear why that deal sputtered. Grossman declined to talk about it, saying only that “it’s one of the best properties on the ocean right now.” Last, in 10th place, was Enzo Morabito, an associate broker with Douglas Elliman who focuses on a slice of the market: Bridgehampton to Westhampton Beach. He had $99 million in listings, according to the TRD analysis, including 20 Dune Road in Quo gue, a 1988 home called Four Winds owned by soap star Susan Lucci with 150 feet of ocean frontage. It was at about $20 million, for Morabito’s priciest listing. TRD

TOP 10 LUXURY AGENTS IN THE HAMPTONS NAME

FIRM

LISTING $ VOLUME

Tim Davis

Corcoran Group

$614,995,000

Harald Grant

Sotheby’s International Realty

$419,378,000

Susan Breitenbach

Corcoran Group

$366,433,000

Gary DePersia

Corcoran Group

$276,515,000

Beate Moore

Sotheby’s International Realty

$235,288,000

Michaela Keszler

Douglas Elliman

$227,140,000

Peter M. Turino

Brown Harris Stevens

$207,250,000

Diane Saatchi

Saunders & Associates

$171,425,000

Erica Grossman

Douglas Elliman

$107,945,000

Enzo Morabito

Douglas Elliman

$99,228,999

Source: The Real Deal analysis of HREO.com data. Represents exclusive listings and co-listings as well as in-contract deals of $5 million and above as of June 9. For co-listings, each broker was awarded the full dollar amount of the deal. Covers from Montauk to Westhampton Beach.

28 JULY 2015 WWW.THEREALDEAL.COM

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VILLAGE ON THE MOVE

HAMPTONS MARKET REPORT

The rooftop pool at the new condominium Harbor’s Edge.

Sag Harbor’s star turn comes of age Luxury condos, restaurants and trendy new retail move into the once-sleepy village as some residents look to slow development BY ELAINE POFELDT

etting a room at the much-awaited Baron’s Cove luxury waterfront resort in Sag Harbor may not be easy this summer. The 67-room property, situated on the marina within walking distance of the village, was fully booked when it opened Memorial Day weekend. “There seems to be pent up demand and we’re ﬁlling a need,” said Curtis Bashaw, comanaging partner at the hotel’s developer, Cape Advisors. The resort’s opening is the result of nearly two years of work by Cape Advisors, known for breathing new life into Cape May, New Jersey, with properties such as the restored Congress Hall. Baron’s Cove is just one of a number of new developments — from condos to restaurants

32 JULY 2015 WWW.THEREALDEAL.COM

and upscale retail — moving into Sag Harbor and turning what was once a sleepy artists’ village into a true East End destination. Other recent arrivals include Harbor Books on Main Street, which opened last fall, and the gourmet take-out eatery Harbor Market & Kitchen, which debuted in April. And buyers are ﬂocking to two new highend condominium complexes, too. “There’s definitely a trend to more upscale,” said Lisa Fields, president of the Sag Harbor Chamber of Commerce and owner of the Sag Harbor Variety Store. But Fields notes that the new additions could bring with them some of their own issues. “Obviously, there’s more trafﬁc,” Fields said. “More people want to come here.”

The town is changing so quickly, in fact, that village ofﬁcials are considering implementing a three-month building moratorium to slow down new development in order to revamp the town’s building code. The moratorium would be imposed on new construction greater than 3,000 square feet and on renovations made to more than 50 percent of existing dwellings, in a bid to halt the large number of mansions being built in the area. The town’s gentriﬁcation is obvious. On the restaurant scene, Wölffer Estate Vineyard, a sustainable vineyard in the Hamptons, is opening Wölffer Kitchen at 29 Main Street this summer, serving up locally-sourced food by Deena Chafetz, who has been a chef at the Santa Fe School of CONTINUED ON PAGE 34

WATERFRONT DREAM SAG HARBOR Exclusive. Excellent waterfront house with waterside pool and deep water dock sits high above the bulk head. The main house offers 4 bedrooms, 2.5 baths, family room with ﬁreplace, luxe kitchen, and glass enclosed living room. Separate heated 2-car garage with 3 ﬁnished rooms above. $5,250,000. WEB# 22868.

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NEW CLASSIC SAG HARBOR VILLAGE Exclusive. Superior new 4 bedroom, 4.5 bath, 2 ﬁreplace home tastefully blends old-world elegance with a range of modern appointments including a spacious kitchen, formal dining, living room and front parlor. Heated gunite pool, pool house, detached 2-car garage. $4,250,000. WEB# 22914.

JANE BABCOOK 631.537.4346 l jbabcook@bhshamptons.com

NEW WATERFRONT HOME SAG HARBOR Co-Exclusive. This brilliant new dream home has been designed to maximize its beautiful location on Sag Harbor Cove. The bold interior offers 2,800± sf of sleek living space, 3 bedrooms and 3.5 baths. Large deck with heated gunite spa. Dock permits in place. May also be purchased with the neighboring new home with dock. $3,495,000. WEB# 44908.

CHRISTOPHER J. BURNSIDE 631.537.4320 | cburnside@bhshamptons.com

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• THE HAMPTONS • NEW YORK CITY • PALM BEACH

VILLAGE ON THE MOVE

HAMPTONS MARKET REPORT

Cooking. The eatery is co-owned by brother and sister Marc and Joey Wölffer. The restaurant will have interior seating for 60 and doors that open to outdoor seating on the sidewalk. Roman Roth, the winemaker from Wölffer Estate Vineyard, will curate the wine list, with about 60 percent of the wines from Long Island and many from the Wölffer vineyard. “Our goal is really to be part of the fabric of the community in Sag Harbor, a real neighborhood place for people who live here and consider Sag Harbor and the East End home,” said Donnell Brown, senior marketing manager for the Vineyard. Joey Wölffer also runs the Styleliner, a bohemian fashion boutique on wheels inside a renovated potato-chip delivery truck that travels back and forth to New York City. In May she opened a store in Sag Harbor at 25 Madison Street called Joey Wölffer: The Road We Travel, which sells items from Wölffer’s burgeoning global lifestyle and fashion brand. Another retailer new to Sag Harbor is Henry Lehr, an upscale women’s clothing store that has other outposts in the Hamptons. It is expected to start operating in the space that was once home to Ideal Stationery, a mom and pop on Main Street that closed this past spring when the owner retired. Meanwhile, the Watchcase Factory development, a project in Sag Harbor by Cape Advisors and Beyer Blinder Belle Architects, is ﬁlling up. It has 63 units including factory lofts, penthouses and townhouse residences inspired by the sea captains’ houses in the village. Eighty percent of the 46 factory units and 70 percent of the 17 residences are already under contract, said Cee Brown, an associate real estate broker at Corcoran Group Real Estate who is in charge of sales for the luxury development. “We’re going like gangbusters,” Brown said. “We’ve got people moving in and living there now.” The residences range from one to six bedrooms, from 700 to 5,000 square feet. Available homes listed on the development’s website on June 1 ranged from a twostory, three-bedroom garden loft with 1,991 square feet of interior space asking 34 JULY 2015 WWW.THEREALDEAL.COM

CONTINUED FROM PAGE 32

The main house at Baron’s Cove has a wood-burning ﬁreplace.

$2.85 million to a twostory, three-bedroom penthouse with 2,848 square feet of interior space for $10.2 million. The “village within a village” style development comes with access to amenities such as a heated outdoor pool, a ﬁtness studio, private spa treatment room and rooftop gardens. Watchcase’s arrival comes as high-end condo developments are springing up across the East End as a growing number of wealthy Hamptonites look for all-in-one vacation properties that include maintenance, concierge services and the like. In mid-May, Harbor’s Edge, a 15-unit condominium complex, opened at 21 West Water Street; it is a project of Water Street Development. The two- and three-bedroom units, which all face the harbor, range from 2,000 to 3,000 square feet, with prices going from $2.5 million to about $6 million for penthouse units, said Keith Green, a licensed salesperson at Halstead Property, who is living there himself. One unit, a penthouse, was sold in preview, and another unit had a full-price

The Styleliner, a boutique on wheels.

offer and acceptance. Residents have access to a 50-foot lap pool on a rooftop sun deck. A concierge will be available six months out of the year, Green said. For people who aren’t ready to invest in a home, Baron’s Cove will be open 12 months a year, with about 80 employees, both seasonal and year-round, Bashaw says. It offers amenities such as three wood burning ﬁreplaces in the main house of the property, a heated saltwater pool, restaurant and a lobby bar. Also on tap is a ﬁtness studio; boot-camp, yoga and hula hooping classes on the front lawn; tennis instruction and in-room massage. “I think what makes Sag Harbor a great place is it’s Sag Harbor,” says Bashaw. “It’s not trying to be too cool.” TRD

DESIGN TREND HAMPTONS MARKET REPORT

Exterior seating area at Zeff’s barn-style home.

The bathroom in one of Plum Builders’ Modern Farm houses.

Designer Mark Zeff’s barn-style home in East Hampton.

A barn raising East End builders are reinterpreting traditional forms in modern style BY THERESA AGOVINO

ark Zeff spent a long six months negotiating the purchase of a cottage for himself near Gardiners Bay in East Hampton before the deal fell apart in 2013. So the owner of what was then an eponymously named design ﬁrm working on everything from luxury yachts to global branding bought land near the bay and constructed his own dream home instead. It is not a typical Hampton’s getaway: The barn-like exterior is painted black, while the airy 6,200-square-foot interior resembles a Tribeca loft with modern conveniences.

36 JULY 2015 WWW.THEREALDEAL.COM

“There are a lot of barns in the Hamptons and that was my inspiration,” said Zeff. “The house fits into the landscape nicely. It looks natural.” Buyers apparently agree. A flood of inquiries inspired Zeff to open Black Barn, a home design and construction firm. He brought in two partners, Robert Dankner, a Manhattan real estate broker, and Jerry Lubliner, a Hamptons developer. The company builds spec homes in the style of modern barns ranging from $3.8 to $4.5 million. It is currently building two in Sag Harbor, two in Sagaponack

and is also planning a home for a client in Amagansett. Black Barn is one of several companies capitalizing on buyers’ newfound fascination with modern barns. Modern Green Home, a long-time local builder that typically constructs modern dwellings, is constructing three modern barns and plans to start another three this summer. Easthampton-based Plum Builders, a 33-year-old ﬁrm, built its ﬁrst modern barn in 2006. It has built three since then and is currently constructing two more that will cost $4.4 million apiece. CONTINUED ON PAGE 38

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DESIGN TREND

HAMPTONS MARKET REPORT

“We started seeing interest in 2006 but then the market crashed,” said Mary Giaquinto, chairwoman of Plum. “Now we are really concentrating on modern barns.” In fact, Plum is going so far as attempting to trademark the term “modern barn.” And with other builders and brokers jumping on the barn bandwagon, Plum is taking legal action to protect exclusive use of the name. Earlier this year, Plum filed a lawsuit in U.S. District Court for the Eastern District of New York against Sotheby’s International Realty and one of its brokers, Beate Moore, for using “modern barn” in marketing materials. The suit, which seeks unspecified damages, alleges trademark infringement and unfair competition. Sotheby’s responded to the ongoing litigation by saying the name was too generic to be trademarked. There’s no universally agreed upon definition of what specifically constitutes a modern barn. But a home in this category might have a pitched roof, simple lines and large windows along with concrete or wooden plank floors. Like their namesakes, the homes feature large, open interiors. Home experts say the design’s newfound popularity reflects buyers’ frustrations with the limited options available in the East End. The selection largely consists of shingled traditional homes or enormous McMansions. “My clients felt like if they’d seen one house they had seen them all,” said Jason Schommer, a broker at Corcoran’s Bridgehampton office who is working with a builder to construct and sell a modern barn in Water Mill. “People want something that is updated but isn’t a modern glass box.” Modern Green president Peter Sabbeth said such homes appeal to both the nostalgic and practical sides of the 30-to 40-somethings looking for a Hamptons retreat. The homes may invoke happy memories of childhoods spent in the country while accommodating a desire for creature comforts like steam showers and swimming pools. “We call it a transitional style,” said Sabbeth. “People want that comfortable style they grew up with but they also want something modern.” Sabbeth is selling three such homes in Amagansett, each about 4,500 square feet with a pool and pool house. Two have an 38 JULY 2015 WWW.THEREALDEAL.COM

CONTINUED FROM PAGE 36

A loft-like interior in one of Plum Builders’ Modern Barn abodes.

“People want that comfortable style they grew up with but they also want something modern.” — Developer Peter Sabbeth

asking price of $4.5 million while the other is $6 million. The latter is in the more coveted part of town, south of the highway. Sabbeth said that part of his homes’ appeal is the option to have it outﬁtted by ABC Carpets. “This is a generation who wants everything now,” he said. The process of designing and building a home can take several years — a time frame unacceptable for most buyers. Sabbeth can build and furnish a home in six to eight months. Architect Chris Coy specializes in custom, ultra-modern homes. Yet three

of the 20 homes his firm is designing are riffs on the barn style. The first one his firm designed was just last year. “Some people come in and they just want a pitched roof. They can’t explain it — it is an emotional thing,” said Coy. Coy said the style is particularly appropriate in locations such as Sagaponack, known for its farms. He doesn’t expect the trend to overrun the Hamptons, noting that modern homes with glass curtain walls are still favored by those with beachfront property. “People want to look at those views,” said Coy. TRD

R E TA I L

HAMPTONS MARKET REPORT

Greenport gets its groove on North Fork village attracts more trendy retailers, but most name-brand stores stay away BY ELAINE POFELDT

eidi Kelso, a TV producer from Manhattan, opened her boutique Lido as a side business in Greenport

in 2012. Selling a mix of resort wear, jewelry and home furnishings, Kelso, a first-time retailer, kept the store open during the tourist season for the past three years. But the shop has done so well that in May, she moved across the street to 132 Main Street, a larger, 1,500-square-foot space once occupied by the kitchen accessories shop Cookery Dock. “I live in the West Village,” Kelso said. “I can’t afford to experiment there.” Lido isn’t the only business that’s benefiting from the influx of visitors who appreciate the vibe of the seaport village on the North Fork of Long Island, located close to local wineries. A number of retail spots and restaurants are moving in or expanding. Greenport Harbor Brewing Co., which began serving craft beer in 2009 in the old Carpenter Street firehouse, expanded from that space to a second, much larger location last July. Brix & Rye, a year-round bar, opened last summer, followed by an adjoining restaurant called 1943 Pizza Bar. Meanwhile, Lucharitos, a popular Mexican restaurant and bar known for fish tacos, has just completed a $150,000 expansion, going from 800 square feet to 2,000 square feet. “We’ve been really busy — two-hour waits on weekends, serving up to 700 people a day,” said Marc LaMaina, owner of Lucharitos. In fact, some in town are starting to compare Greenport’s retail scene to that of New York City’s hippest borough. Though

40 JULY 2015 WWW.THEREALDEAL.COM

Clockwise: Downtown Greenport, drinks at Lucharitos, resort wear from Lido.

the trendy clothing shop Calypso has been an anchor in town since 2007, most of the stores are independent boutiques. “It’s a sleepy little town starting to hit its stride, “ said Sheri Winter Clarry, who works for Corcoran Group out of the Southold ofﬁce. “It is a lot like Brooklyn.” It’s not clear what effect the Brooklyniﬁcation is having on commercial real estate. There is no widely available data on commercial rent pricing as the town is so small, and many deals still take place between building owners and renters, neither of which was willing to disclose prices. “Everything gets negotiated,” Clarry said. Residential prices for single-family homes were up slightly in the second half of 2014, averaging $440,885, compared to $439,853 during the same period in 2013, according to

data from Brown Harris Stevens. The town’s growing cache is helping spur the success of local businesses. This year Greenport is hosting the high-proﬁle Tall Ships Challenge 2015 from July 4 to 7. Because of that, Robby and Shannon Beaver, owners of The Frisky Oyster, are expanding the hours of their restaurant. Beaver purchased the restaurant from the previous owners with his wife in 2010 and worked there prior to that, drawn by the community’s ambiance. “What drove me to Greenport was a very nostalgic feel that it has,” Beaver said. “It’s not dressed up like the Hamptons. It doesn’t have a J. Crew or a Pottery Barn on every corner, like Southampton has. It’s very small businesses, mom-and-pop kind of places.” TRD

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CLOSE-UP HAMPTONS MARKET REPORT

Starchitects of the East End Hamptons-based firm Bates + Masi rack up awards and say market is busier than ever BY KERRY MURTHA

ward-winning minimalist architects Harry Bates and Paul Masi have designed dozens of homes on the East End of Long Island, where they both live. Their work — which includes Quail Hill, a 4,400-square-foot house in Amagansett that just sold for $4.5 million — has been hailed as edgy and original, and the ﬁrm has won 95 design awards since 2003. Unlike the homes of some builders in the Hamptons, no two Bates + Masi houses look alike. The architects recently spoke to The Real Deal about their current projects, the latest in design trends and the state of the luxury market.

Clockwise: Elizabeth II, rendering of Sag Harbor United Methodist Church renovation, Paul Masi (left) and Harry Bates.

What projects are you working on? We are currently working on several projects including the transformation of a historic Sag Harbor church into a private residence, the creation of a new commercial (LEED certified) building that will house our offices in East Hampton, and a number of custom homes throughout the Eastern Seaboard. Can you give an example of a feature people are currently looking to have in their homes they may not have asked for a few years ago? Homes are more integrated with technology, especially the mechanical systems, and they are more efficient and able to be utilized only when they need to be. What are your most recent award winners? Pierson’s Way (a 7,400-square-foot home in East Hampton that incorporated existing barn-like buildings into a contemporary design) was named the regional winner of the Sub-Zero and Wolf Best of the Best Kitchen Design Awards. The five-bedroom home in Amagansett named Elizabeth II, which included 20-inch thick walls for both thermal and acoustic insulation, won a number of accolades including the Wood Design and 42 JULY 2015 WWW.THEREALDEAL.COM

Building Citation award. (Masi built that home for his family to live in in 2012.) Are there any other new bells and whistles clients want these days? Most clients want durability rather than a specific product or amenity. Clients are looking more long term in regards to sustainability and their investment. Properties are not being viewed as a disposable commodity. How would you characterize the market, including sales prices? The market is very busy. The sales prices are

probably the highest we’ve seen and they keep going up. We still think there are great investments in the community. Why do you think there is a surge in sales now? Many of our clients are in the ﬁnancial sector and are doing very well. From their ﬁnancial gains they are investing in second homes. Are there new areas that are becoming hot? I’d have to say Sag Harbor, Amagansett and Montauk. These areas have been hot, but relative to the surrounding communities, they are booming. TRD

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TownAndCountryHamptons.com

YOUR GATEWAY TO A RICHER LIFE

LONG ISLAND MARKET Hamptons Market Report

Around Long Island A look at the residential real estate markets in noteworthy towns outside the Hamptons BY ANNE FIELD

55 Longfellow Road

GREAT NECK

55 Oregon Street

LONG BEACH

160 Oxford Boulevard

GARDEN CITY

Perhaps best-known as the setting for Gatsby’s mansion in “The Great Gatsby,” Great Neck commonly refers to a bedroom community of nine villages and several unincorporated communities. But it can also specifically mean the venerable 1.4 -squaremile Village of Great Neck, sometimes called “the old village.” In both cases, it’s an affluent area with an easy commute, highly-rated schools and plenty of parks and restaurants. Recently, the biggest influx of new residents has been from Asia, according to Mona Kremin, associate broker and branch manager of the Douglas Elliman Great Neck office. “They used to move from Flushing and Bayside, “ she said. “Now they’re coming directly from overseas.” Average home prices are at about $1.4 million year to date, an increase of 6.5 percent over prices in 2013.

This beach community, hit hard by Hurricane Sandy, is now attracting more second home buyers than ever before, most of them from Manhattan and Brooklyn, according to Alex Rubin, an associate broker with Douglas Elliman in Long Beach. “The storm was a terrible tragedy, but a lot of people discovered the community because of all the media coverage,” Rubin said. He also sees a signiﬁcant number of homeowners knocking down their stormravaged bungalows and replacing them with larger homes. An obvious attraction of Long Beach is the easy commute to New York City — a 55-minute train ride — and prices that are considerably more affordable than the Hamptons. Average residential home prices have weathered the storm, although they haven’t reached pre-recession levels. Year to date, the average is $519,384 compared to $401,834 in 2013 and $568,608 in 2006, according to Rubin.

Just a 30-minute commute to New York City, the central Nassau County village of Garden City is a tidy, afﬂuent suburb that attracts a lot of professionals including money managers, attorneys and corporate executives, according to John Martin, branch manager of the Douglas Elliman Real Estate ofﬁce there. Right next door in East Garden City is Roosevelt Field, the second-largest full price shopping mall in the state. Average residential sales prices have been fairly consistent since before the meltdown, though they still haven’t quite hit pre-crash heights. For 2015, year to date, home prices averaged $967,163 compared to $955,197 in 2013 and $994,198 in 2006, according to Martin. “Over the last six months or so, Garden City, as well as other similar towns, are experiencing low inventory, which is keeping the numbers high and generating multiple offers on many properties,” he said.

Population: 40,000 Median household income: $134,401 Land area: 11.4 square miles

Population: 33,552 Median household income: $78,460 Land area: 2.14 square miles

Population: 22,352 Median household income: $135,658 Land area: 5.34 square miles

44 JULY 2015 WWW.THEREALDEAL.COM

CONTINUED ON PAGE 46

LONG ISLAND MARKET

HAMPTONS MARKET REPORT CONTINUED FROM PAGE 44

1 Carriage Drive

OLD WESTBURY

77 Pickwick Road

MANHASSET

51 Broadway

ROCKVILLE CENTRE

It’s been called the second richest town in America and New York’s most expensive suburb. Forbes recently found the average net worth of Old Westbury households to be $19.6 million. The area is also famous for being home to the likes of the Vanderbilts, Whitneys, Winthrops and Huttons, to name a few of the gilded families who settled there. Many of their original mansions still stand today. Another high-end feature of Old Westbury: Any property subdivided since 1987 must have a minimum of four acres, according to Andrea Spitalnick, a broker with Coldwell Banker Residential Brokerage in Roslyn Heights. Average residential sale prices indicate that Old Westbury’s cachet is more brilliant than ever. From June 2014 to June 2015, the average home price was $2.2 million. In 2013, it was $1.98 million, and in 2006, $1.93 million, according to Spitalnick.

Buyers come to this afﬂuent community in Nassau County because it has a “cosmopolitan feel,” according to Adele Kuczmarski, an associate broker with Coldwell Banker Residential Brokerage in Manhasset. That characteristic is especially attractive to many former residents of Manhattan and Brooklyn. “People have been cashing in on their apartments in NYC, but they don’t want the culture shock of moving to Long Island,” Kuczmarski said. Manhasset is a shoppers’ delight with the “Miracle Mile” shopping center, plus Macy’s, Lord & Taylor and other stores on Northern Boulevard. Average residential home prices are just above pre-recession levels: Year to date they are $1.55 million, compared to $1.3 million in 2013 and $1.52 million in 2006, according to Kuczmarski.

Another suburb featuring a quick commute to New York City and urban ﬂair, with plenty of public transportation, is Rockville Centre. “That’s a big draw for people coming from the city,” said Elizabeth Wallace, a realtor associate with Century 21. It’s also attracting young professional couples that want to rent. Fifty-two percent of residents in Avalon Rockville Centre, a 349-unit building of one- and two-bedroom apartments that opened in 2011, are under the age of 35, according to Christopher Capece, senior development director for AvalonBay Communities in Melville. From June 2014 to June 2015, the average sale price was $735,229 compared to $734,856 in 2013 and $759,865 in 2006, according to Wallace. The priciest sale so far this year was $2.2 million versus $1.7 million in 2006.

Population: 4,615 Median household income: $199,781 Land area: 8.56 square miles

Population: 8,080 Median household income: $104,213 Land area: 2.39 square miles

Population: 24,110 Median household income: $107,832 Land area: 3.28 square miles

46 JULY 2015 WWW.THEREALDEAL.COM

NEW YORK CITY

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Halstead Property, LLC; Halstead East Hampton, LLC; Halstead Hamptons LLC We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an afﬁrmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin. All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. No representation is made as to the accuracy of any description. All measurements and square footages are approximate and all information should be conﬁrmed by customer. All rights to content, photographs and graphics reserved to Broker.

LAND GRAB HAMPTONS MARKET REPORT

A 0.8-acre parcel located in East Hampton.

Skyrocketing land prices rock East End Dearth of available space makes for record demolitions as builders look for vacant property BY THERESA AGOVINO

here’s a new kind of home advertising in the Hamptons that doesn’t have sparkling adjectives and lush photos beckoning buyers. Instead the ads broadcast “land value,” which essentially tells potential buyers that while they may not want the house, they would want the plot it’s built on. Mary Giaquinto, chairperson of East Hampton-based Plum Builders, said that desirable land in the Hamptons has become so scarce — and so expensive — that it is easier to demolish an old house and construct a new one. “Tear downs are here for now and into the future,” said Giaquinto, noting that three of the last six houses the company built were

48 JULY 2015 WWW.THEREALDEAL.COM

constructed on sites where other homes once stood.

“People want no muss, no fuss. Everyone wants LQVWDQW JUDWL¿ FDWLRQ ´ — Paul Brennan, Douglas Elliman Last year a record 43 demolition permits were granted in Southampton, according to

Joan & Paul Robinson, a real estate firm. The firm said 99 percent of the town is already built out. There’s been a furious land grab in the Hamptons since the market hit bottom. Between 2009 and 2014, the number of plots sold has more than quadrupled, to 430, while the average price has soared 50 percent to $1.4 million, according to research compiled for The Real Deal by appraisal firm Miller Samuel. In contrast, the average number of home sales only doubled — still impressive — to 2,429, and the average price of a home increased just 14 percent to $1.7 million . Developers have been driving the cost of CONTINUED ON PAGE 50

LAND GRAB

HAMPTONS MARKET REPORT

CONTINUED FROM PAGE 48

land higher because in the last decade or so they have been building more spec houses, catering to the crowd that wants a Hamptons home but doesn’t want to wait the two years it can take to purchase a plot, design a home and then construct it. “People want no muss, no fuss,” said Paul Brennan, a broker at Douglas Elliman. “Everyone wants instant gratiﬁcation.” Cody Vichinsky, a broker at the real estate agency Bespoke, said in the last year he has sold three plots in Southampton to developer Jay Bialsky for $37 million and three plots in Sagaponack to him for $26 million. “The developers set the prices,” Vichinsky said. Average land prices dipped after hitting a high in 2010 as developers slowed down and made sure their homes would sell. Pricing has been rebounding since 2012, but some developers have only recently gotten back into the purchase market because they wanted to insure the recovery would stick. Peter Sabbeth, owner of Modern Green

Home in Bridgehampton, said he only started building spec houses again 18 months ago. “I wanted to make sure I’d be able to make money,” Sabbeth said. And despite the demand, developers are being very careful about how much they spend for the parcels because if they overpay, it cuts into their proﬁt margins. The developer Mark Zeff, for example, said he doesn’t buy land south of the highway

Building big means sticking north of Rt. 27. “If you cross the highway, that’s just not possible.” — Developer Mark Zeff

to construct homes for his new housing development company Black Barn. He said in order to keep the prices of his homes in the $4 million range and make a proﬁt, he

E N G I N E E R I N G P. C .

can only spend about $750,000 for the land. The plots he builds on are about two acres. “If you cross the highway, that’s just not possible,” said Zeff. TRD

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This $2.7 million house in West Hampton Dunes was built using crowdsourced funds.

Crowdfunding craze hits the Hamptons After initial success in Westhampton, investors appear ready for more BY JUDITH MESSINA

rowdfunding may have arrived in the Hamptons just a year ago, but its initial success has participants ready for more. After selling a $2.7 million bayfront house in West Hampton Dunes that was financed in part by crowdfunding, developer Chad Gessin of Chatham Development said the process was seamless. “We would do it again,” said Gessin, whose company is a large developer on Long Island. “[It’s] like eBay. You say, ‘This is what I got, do you want it?’ — as opposed to interviewing every lender and financial institution.” Courtesy of the platform Fundrise, the Westhampton project was the first

52 JULY 2015 WWW.THEREALDEAL.COM

crowdfunded house in the Hamptons, riding a wave of interest in this new, democratized form of ﬁnancing. And more are poised to enter the game in the exclusive enclave. Nationally, crowdfunding is taking off. More than 10 dedicated platforms are trying to lure investors for projects ranging from residential to ofﬁce space. According to Crowdnetic, a New York City-based company that aggregates and analyzes crowdfunding data, 13 percent of the funds that have gone to all types of crowdfunding since the September 2013 Jobs Act, which gave the go-ahead to equity crowdfunding, went into real estate projects. “Investors love the space,” said Eric Smith,

director of data analytics for Crowdnetic. “Long term, I think this is an area of crowdfunding that hasn’t come close to realizing its full potential.” Deals can be sold as either equity or debt, but the beauty of real estate crowdfunding, added Smith, is that investors can put in as little as $10,000 and handpick their deals. “You can construct a reasonably diversiﬁed portfolio yourself versus investing in a REIT or private equity fund,” he said. The deal that helped produce the West Hampton Dunes house was two years in the making, said Chatham’s Gessin, as he and the founders of the crowdfunding platform, Fundrise, came up with a CONTINUED ON PAGE 54

GROUP INVESTMENT

HAMPTONS MARKET REPORT

CONTINUED FROM PAGE 52

Gherardi, Realty Crowdfunding expects to open its portal, fundinghamptons.com, in a few weeks. The pair has also grabbed the URLs fundingmanhattan.com and fundingjerseyshore.com, two more sites they intend to launch by the end of the year. The intent of the sites are not only to fund their own developments, but to act as a platform

structure agreeable to both parties. The rate â&#x20AC;&#x201D; 10.5 percent plus fees â&#x20AC;&#x201D; was higher than Chatham might have gotten from a bank, but it came with more speed, greater ďŹ&#x201A;exibility and less red tape, he said. Open only to accredited investors, people with at least $200,000 in annual income and more than $1 million in assets, the project attracted about 70 participants mostly from New York, California and Washington, D.C., each investing an average of about $14,000. Crowdfunding raised $1.05 million, about half the cost of building the ďŹ ve-bedroom, four-bath house. For their trouble, investors got the ďŹ xed annualized return of 10.5 percent. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better than the stock market or bond funds,â&#x20AC;? said Dan Miller, co-founder and president of Washington, D.C.-based Fundrise, adding that heâ&#x20AC;&#x2122;s planning to do more in the Hamptons. If he does, heâ&#x20AC;&#x2122;ll be joined by another, soon-to-launch platform. Founded by developers Glenn Callahan and Richard

â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s like eBay. You say â&#x20AC;&#x2DC;This is what I got, do you want it?â&#x20AC;&#x2122;â&#x20AC;? â&#x20AC;&#x201D; Chad Gessin, Chatham Development for other developers to raise money. The Hamptons, predicted Callahan, is an opportune location for real estate crowdfunding, especially at a time when the so-called â&#x20AC;&#x153;one percentersâ&#x20AC;&#x153; are doing so well. â&#x20AC;&#x153;A place with that level of cache is going to attract investors,â&#x20AC;? he said. For all the enthusiasm, though, real estate

crowdfunding comes with its own set of precautions, including a young track record. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s still very early,â&#x20AC;? said Omri Barzilay, co-founder of Propcy, a new site now in testing that aims to help real estate investors make smart decisions. â&#x20AC;&#x153;People should stick with crowdfunding websites that can show deals and turnover in dollars.â&#x20AC;? TRD

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BOLDFACED DEAL S

Hamptons Market Report

East End celebrity moves Hollywood stars, business execs and the media elite are buying and unloading pricey property, including a $140 million Georgica Pond estate BY JUDITH MESSINA

he Hamptons real estate market heated up over the past year with a listing of one of the most expensive properties ever to come to market in the wealthy, star-studded enclave, touting a price tag of $140 million (in 2014, a Hamptons mansion sold for a record-setting $147 million). Along with that, there was the usual crop of A-listers, from business executives to reality television celebrities, who were buying, selling and renovating their pricey pads. Here is a look at some of the most notable such transactions of the past year.

Buying Skinny Girl moBethenny Frankel gul and star of “Real Housewives of New York” Bethenny Frankel picked up a five-bedroom house with a gunite pool and guest cottage in Bridgehampton at 346 Lumber Lane earlier this year. Back on the show after a three-season break, Frankel appears to be on a property-buying spree after her 2012 divorce from pharmaceutical salesman Jason Hoppy. Last year, she reportedly paid $4.2 million for a two-bedroom condo in Soho that she is now renovating.

LuAnn de Lesseps

On The Market In more “Real Housewives of New York” news, show regular LuAnn de Lesseps departed the South Fork, selling her Bridgehampton house last fall for a reported $8 million to local builder Joe Farrell of the Farrell Company. He promptly tore down the 6,500-square-foot residence to build a larger one. The asking price on the new home is reportedly $20 million. Edison Schools founder and executive Chris Whittle gets the prize for the priciest Hamptons property on the market so far this year. His 11-acre Georgica Pond estate, Briar Patch, went up for sale last November

for a jaw-dropping $140 million. Its pedigree includes a 10,000-square-foot main house, a 3,500-square-foot guest house, tennis court, pool and spa, not to mention a listing on the National Register of Historic Places. Brown Harris Stevens has the listing.

Ramona Singer

Still more RHONY drama in the Hamptons this year as Ramona Singer, in the middle of a divorce from husband Mario, is reportedly renting out her 7,000-square-foot Southampton manse at 39 Pheasant Close South. The six-bedroom, six-bath house was going for $300,000 from Memorial Day to Labor Day. The property is also available to rent for shorter time periods. Meanwhile, Susan Lucci soap opera diva Susan Lucci last summer put her 11,000-square-foot Dune Road home up for sale for $20 million. It’s still on the market. Lucci and her husband, Helmut Huber, built

Chris Whittle 56 JULY 2015 WWW.THEREALDEAL.COM

CONTINUED ON PAGE 58

DOUGLAS ELLIMAN REAL ESTATE IS PROUD TO WELCOME

YORGOS TSIBIRIDIS “I am excited to join Douglas Elliman's dynamic East Hampton office. I am looking forward to serving my customers and growing my business by leveraging Elliman's marketing platform and close ties to the NYC Market.” Yorgos has quickly become a top agent in the Hamptons market, with an expertise in the Amagansett, Montauk and East Hampton markets. His creative approach coupled with his impeccable customer service, hard work and marketing skills make him a true asset to his customers.

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A native Greek, Yorgos studied in Italy and speaks Greek, Italian, French and Spanish. Graduating from Columbia Business School, he had a successful career in ﬁnance before jumping into real estate and developing luxury real estate hospitality projects.

Licensed Real Estate Salesperson 20 Main Street, East Hampton, NY 11937 O: 631.267.7368 | C: 646.270.4544

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BOLDFACED DEAL S

Hamptons Market Report

CONTINUED FROM PAGE 56

Sold CNN star anchor Anderson Cooper has reportedly sold his two houses in Aspatuck Creek in Quiogue for $2.6 and $2.975 million, both of which went on the market last Sep-

Anderson Cooper

Susan Lucci and Helmut Huber’s house Four Winds

Renée Hampton house Zellweger on Egypt Lane, reportedly within a few weeks of its listing last November. The house went for $250,000 over the $4.45 million asking price. Zellweger bought the cozy 2,000-square-foot house for $2.3 million in 2003.

the house, known as Four Winds, in 1989. Douglas Elliman is the agent. Another pair of Dune Road inhabitants, Tina Brown and husband Harold Evans, are trying to sell their Quogue home, on

tember. The larger, four-bedroom house, which dates from 1928, sold in February. Jason Kidd , Milwaukee Bucks coach and retired NBA player, will take home $7.1 million for his six-bedroom, Jason Kidd six-bath house in Water Mill. Built in 2012, the house is set on two acres with a pool, tennis court, basketball court and putting green, making it a sports fanatic’s paradise. It reportedly went to contract in early May. Actress Renée Zellweger unloaded her four-bedroom, beachfront East

the market since last August. With three acres Tina Brown of land, nearly 6,000 square feet of house and 206 feet of oceanfront, the asking price for the shingled home is $9.9 million, chopped down from $12 million. Norma Reynolds of Sotheby’s International Realty has the listing. Hollywood heartthrob Richard Gere is still trying to sell his 6.3acre property in North Haven, known by the moniker Strong Heart Manor. Last August, he dropped the Richard Gere price tag to $47.5 million, reportedly down from $65 million two years ago. It boasts 19,000 square feet of living space and has 12 bedrooms, 12 baths, a basketball court and a 60-foot heated pool. Douglas Elliman has the listing. 58 JULY 2015 WWW.THEREALDEAL.COM

Renovating Actor Alec Baldwin is expanding his historic Amagansett house, adding more than 3,300 square feet to the ﬁrst and second ﬂoors. Baldwin is reportedly removing nonhistorical additions to the house, which dates Alec Baldwin from the 18th century, while improving it for 21st century living. TRD

Town Residential LLC (“Town”) is a licensed real estate broker and a partnership of Buttonwood Residential Brokerage LLC and Thor Equities, LLC. O: 212.398.9800. John P. Carapella is a licensed associate real estate broker with Town 79th Street, LLC. Town 79th Street, LLC is a licensed real estate broker and a subsidiary of Town. O: 212.929.1400

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