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| Issue #39, December 22, 2006 |
Real Estates
by Diane Strecker
It has been another banner year for East End realtors and there seems to be no end in sight to the phenomenal sales and rentals drawing astronomical prices. During a year when the rest of the country droned on about the real estate bubble bursting, the real estate market here on the East End has remained a high-end entity. In fact, with Wall Street bonuses being awarded in the billions of dollars as the year closes, realtors in the Hamptons anticipate an even higher increase in high-end sales in the early part of 2007. Last January, this same trend took place and millions were spent in the first quarter of 2006 on Hamptons estates or on their rental. With record-setting windfalls such as these, area realtors are excited to see what the next few months will bring.
Specialty mortgage products are gaining popularity and may be attractive to big bonus earners. Trump Mortgage now is offering the latest trends in creative financing. One such mortgage product is the Negative Amortization loan, where the lender actually allows the borrower to make monthly payments that are less than the accruing interest. The power of this type of loan is that it allows the borrower to choose between the full loan payment, the minimum or any amount in between. If a borrower’s income varies throughout the year, due to commissions and bonuses, the borrower can make lower payments in leaner times and higher payments when funds are more readily available. New York City real estate is, of course, comparable with Hamptons standards and pricing, and it is a given that many of the big bonus bucks will be spent on that as well.
For $5.7 million, one can purchase the four-bedroom loft owned by the Grammy and Tony award-winning composers of Hairspray, Marc Shaiman and Scott Wittman. The 4000-square-foot space was once two separate lofts and was later combined to make one large one. It includes 550-square-foot, professional quality, soundproof recording studio that is large enough to fit a ten-piece music ensemble. The 20th street location is packed with amenities, including built-in plasma TVs throughout the apartment, an entertainment room and 10 to 15-foot remote shades. It also has private, key-only elevator access. It is listed with Fenwick Keats Goodstein in New York.
In 2006, multiple commercial listings flooded the East End market and many have already changed hands. Vineyards on the North Fork, marinas in both East Hampton and on Shelter Island, retail space in East Hampton, a night spot in Sag Harbor, and a ranch and six motels in Montauk all went on the market this year. Even Gosman’s Dock in Montauk went on the market recently at $55 million, making it appear as if the entire town had practically gone up for sale. Gosman’s consists of four restaurants, as well as the famous fish market and retail space. It is one of the best-known points in the area. The complex serves thousands of visitors each year. The Shepherds Neck Inn there is already under renovation to become luxury resort condominiums. The landmark Amagansett Farmers market was also listed earlier this year.
Most of these properties have either been family-owned or have had the same owner for decades. So, why the seemingly sudden exodus? Many say that the drastic increase in prices here (nearly tripling in just a three-year period) has encouraged owners to cash in at the height of their property’s value. Price increases like this may never be seen again. Many property owners, particularly those who own commercial property that started out quite modest, have virtually watched their equity explode. Most have holdings in the very high millions.
Three East End Estates owned by supermodel Christy Brinkley and her soon-to-be-former husband, well known Hamptons architect Peter Cook, totaling nearly $50 million, may soon enter the market. This includes their mansion in Bridgehampton, valued at $27 million. The famous couple also has a beach house in Water Mill and an $18 million estate in North Haven. These are just a few of the many prestigious, multi-million dollar estates that may be available to purchase this coming year.
Breaking News: It was reported this week that Eothen, the oceanfront compound and celebrity enclave in Montauk, has finally sold. Located on the beautiful Montauk Moorlands, it was once the highest priced estate on the East End, at $50 million when it listed five years ago. The buyer is said to be Mickey Drexler CEO of the retail empire J. Crew and he is said to have made an offer somewhere under the recently reduced listing price of $40 million. The property is just about as far east as one can get and is surrounded by hundreds of acres of preserve which include 600 feet of oceanfront offering unstoppable ocean vistas. The five-home compound is one of the most secluded spots on the East End with a driveway just about a mile from the main road.
You can reach Diane at eastendrealest@yahoo.com.
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