| Issue #35, November 24, 2006 |
Real Estates by Diane Strecker
As the market levels, or even becomes a buyers’ market, in other parts of Long Island, New York, and the rest of the country, prices in the Hamptons are holding, where the real estate world is in a world all its own! I guess one could even call it an out of this world market, where numbers asked for and taken in continue to astound us. Buying and selling real estate here on the East End has become big business with high-stakes players. The prices that the area demands bring with them large corporations and mega-developers, many of whom have begun to, or plan to, build elaborate housing and resort sites.
In Bridgehampton, a developer has purchased the property on the corner of the Sag Harbor/Bridgehampton Turnpike and has already submitted plans to construct a resort complex that will include an inn, four guest cottages, a convention center and a health and beauty spa. The proposed project on the site of the old Bulls Head Inn, The Orchard, will be subject to approval, of course. Two multi-million-dollar Montauk resorts are under renovation to become high-end vacation retreats. The Panoramic, is directly on the ocean and is said to have gone for an unfathomable price, according to a local Montauk realtor. The price has not yet been disclosed. At Gurney’s Inn right next door, timeshares remain popular and are at an all-time high. The recent real estate boom of the past few years has drawn big money to the Hamptons from all corners of the country. Many of these larger commercial deals are made privately, long before they ever hit the market. Regulations here prevent new developers from simply building whatever it is they want to build, and restrictions along our shorelines are tight. Not much gets by the preservation groups on the East End, who work tirelessly to protect its natural beauty and integrity.
In many cases, new developers and realtors work in cooperation with preservation groups, making these transitions smoother than they may have gone otherwise. The Corcoran Group, for example, partnered with the Peconic Land Trust last year in order to help educate buyers in regards to the sensitivity of some of the East End’s most valuable assets and commodities – its land, waterfronts and wetlands.
While some worry about over-development on the East End, it is important to point out that many of these projects have brought improvement and beautification to the area. Some very large sales in the past few years have actually saved historical relics from being becoming rubble, or have improved the beauty, or brought more commerce to the area. The Bullova watchcase factory in Sag Harbor, purchased by a large development company last year, had been considered an eyesore for many years and was to be demolished. It was literally falling apart. It was purchased by a company called Cape Advisors for $16 million as-is, and is now in the process of being renovated into residential housing. The new building plans include 72 luxury condominiums and 13 town houses.
On the North Fork, however, the market has shifted and there is quite a bit for sale, and prices have definitely gone down. Again, the high-end remains in a class by itself. That rings true for the North Fork as well, but smaller properties have definitely gotten “real,” as many North Fork realtors put it. At this time last year, the market was firm on the North Fork and sellers there were getting close to, on, or above their asking prices, but now we are seeing more room for negotiation. This should not be confused with a drastic drop of any kind, however, and it goes without saying that the high-end properties on the North Fork have been elevated to a new plane.
 |
