Dan's Papers - Issue #4 - April 20, 2007

The Yacht Club in Montauk goes for $34 million! This past year has been filled with commercial listings throughout the East End. Many of those properties have already changed hands. In Montauk, where many properties are for sale, there are more than a dozen commercial properties on the market. Motels such as the Panoramic View, which sits on the ocean bluffs of the Old Montauk Highway, was sold months ago and is already being renovated. Shepherds Neck Inn also sold and the new owners are in the process of transforming it into an upscale resort community. Deep Hollow Ranch, the oldest cattle ranch in America, also known for its "Back at the Ranch" concerts that featured the likes of James Taylor, Ray Charles and Billy Joel has decided to cash in, too. The 17-acre historic spread can now be purchased for $17 million.

Just months ago, the resort town was shocked when the famed Gosmans Dock announced it was going up for sale at $55 million. And just weeks ago, Eothen, the legendary celebrity enclave owned by the late artist Andy Warhol and his friend and film producer, Paul Morrissey, finally sold for $27 million. The famous estate compound on the Montauk Moorlands included five structures on the ocean set in the heart hundreds of acres of preserved land. It was listed at $50 million for five years and although there were many offers, no deals came to fruition.

Now, the big news is that another historic site has changed hands. The most recent sale is that of the landmark Montauk Yacht Club that was recently purchased for $34 million by a Florida based company. The original club was built by Carl Fisher in 1928, who also built the Montauk Manor as part of his plan to turn Montauk into the Miami Beach of the North. The 35-acre marine property on Star Island includes 232 boat slips large enough to accommodate yachts as large as 175 feet. There are also 107 guest rooms, a restaurant, spa and private beach. The new owner, Island Global Yachting, based in Fort Lauderdale specializes in yacht clubs and marina facilities all over the world with concerns such as the new Yacht Haven Grande on Saint Thomas in the US Virgin Islands. Their holdings also include Yacht Club Isle de Sol on St. Martin and Village Cay Marina on Tortola, just to name a few. The East Hampton Point Resort & Marina in East Hampton remains listed at $55 million.

Other properties on the market in Montauk include the Startop Ranch with 14 acres at $13.5 million. Also, the Oceanside Motel is priced at $7 million and is located right off the ocean and has 30 guest rooms as well as a two bedroom apartment. It is set on a little less than an acre with ocean views and a pool. It is listed with The Corcoran Group in Montauk.

Another well-known Montauk Motel also awaits a buyer. The Ronjo motel located right in the center of town is also for sale at $6.8 million. It consists of 33 units and an owner's apartment. It is also listed with Corcoran. At $4 million, there is Ruschmeyers on Fort Pond that includes a restaurant and 33 rental units. It is listed with the Tuma Agency in Montauk.

Montauk was one of the last East End towns to allow the larger real estate moguls to buy in. Just four years ago many local agencies told me it would never happen. At this point, many of those same agencies have become Corcoran or Prudential Douglas Elliman. Many of the high-end Montauk properties are now listed with the larger brokerages in East Hampton such as Sotheby's International Realty or Brown Harris Stevens.

Local agencies here have done a good job of hanging on in the tiny town where long time brokers such as Martha Greene, Popsil, John Keeshan and the Tuma Agency remain in the game. So what's the point to all this real estate activity? Inflated prices over the last five years have dramatically raised the value of properties and owners are cashing in at phenomenal prices and are leaving town multi-millionaires.