Buyouts, Mergers And The Dearth Of Independents In Hamptons Real Estate

Death and taxes are commonly referred to as the two inevitable things in life. But constant change is another, and certainly when it comes to the world of real estate. Even here on the East End where the industry, though more protected than other less financially stable areas, has been in a state of flux for the last few years.

But even with the recent economic downturn, many agents and brokers predict that the local real estate marketplace is now on the upswing. Andrew Saunders, the owner of Saunders & Associates, is so certain that he has invested in a new luxury commercial space on Main Street in Southampton Village, which will officially open for business on Friday, May 27.

“The market has been firm since the fourth quarter 2010,” Mr. Saunders said during a telephone interview on Thursday. “Then we had an extraordinary first quarter and a very strong second quarter. It’s a great backdrop to expand your business.”

During a walkthrough of the newly renovated 3,300-square-foot commercial space (Mr. Saunders bought the entire building, though only the main floor will be open to clients) last Wednesday, Gary Nolan, the director of Brand & Technology Fulfillment for Saunders, showed off what he called a “brand-experience office.”

“This space is reflective of the homes our clients are purchasing,” he explained as he pointed to a luxurious sitting room area, complete with a large plasma television and client work stations for checking email, surfing the web and such. “It’s opulent, clients will definitely feel comfortable here.”

The Southampton Saunders office has high-tech workstations for 30 agents, Mr. Saunders said. He added that the company opened its doors in 2008 and now has approximately 70 agents, which he predicted will grow again when he expands by opening another office in East Hampton “in the near future.”

Mr. Nolan said that the creation of the Southampton office is good for the village economy and also makes a statement about the solidity of the local real estate market.

“We’re creating jobs,” he said. “Why would we do these things unless we believed in the Hamptons market.”

Another firm that has invested in East End real estate is Manhattan-based Heddings Property Group, which just opened its flagship Hamptons office on Windmill Lane in Southampton Village. Linda Perillo, a former top producer for Prudential Douglas Elliman, has joined the firm as senior vice president.

During a telephone interview last week, Ms. Perillo explained that Heddings boasts sophisticated technology, one-click navigation and a user-friendly website, which utilizes the Long Island Multiple Listings Service (MLS) and RealNet. She said that Heddings has the “meat” of a big company but the flexibility of a boutique firm.

The Heddings model is different from that of other east-of-the-canal firms in that there aren’t proprietary listings and all are shared on MLS, Ms. Perillo said.

“Our whole idea is not to just advertise our brand; it’s not what we’re about, it’s what clients hire us for. It’s an open playing field,” she said. “We’re the only boutique agency who has MLS out here. We don’t mind if someone takes our listing and puts it on their site. It’s a win-win situation.”

The Heddings office already has four dedicated agents, with a few more “on the verge,” Ms. Perillo reported. She said that in the middle of trying to get the office set up (there isn’t even a sign out front yet) in the last month, she’s already managed to “squeeze out six rentals” as she’s “hustling to get things together.”

Another big change, in the form of a buyout/Hamptons expansion, has occurred at the former Engel & Völkers firm, which was acquired by Nest Seekers International in April. Manhattan-based Nest Seekers, an affiliate of Lev Group, which already had a presence in Bridgehampton, purchased the Engel & Völkers offices in East Hampton and Southampton.

On Friday, Nest Seekers issued a release announcing the appointment of Joseph DeCristofaro, a former member of The Corcoran Group’s Multimillion-Dollar Club, as the executive vice president and managing partner of the Southampton office. Amadeus Ehrhardt, former manager of the Engel & Völkers Southampton office, has been named the managing director of the Nest Seekers Southampton office; Barbara Feldman is the managing director of the East Hampton office; and Eddie Shapiro, President and CEO of Nest Seekers International, will continue to run the Bridgehampton office. The company is also in talks to absorb Villasoftheworld.com, and has recently teamed up with that company’s founder and president, Alfredo Merat.

Approximately 20 agents from Engel & Völkers made the transition to Nest Seekers. The company is looking to hire another 30 agents, according to a previously issued release.

There have also been some big changes west of the canal, where mergers and the closings of a couple of mom-and-pop shops have left four empty storefronts on Main Street in Westhampton Beach.

Cosmo Ficara, who owns WHB Real Estate in Westhampton Beach, said during a telephone interview last week that he closed the physical location of his Main Street business but is still working remotely and virtually with a handful of agents.

“In April, my lease was up and I made the decision, I’m not going to renew my lease,” he said, adding that the downturn in the local real estate market strongly influenced his decision, though it was a tough one to make. “It’s just the economy,” he said, stressing that he and his staff of four in Westhampton Beach will continue to have an internet presence and “the phones are on 24-7.”

He likened the cost of operating a real estate business in Westhampton Beach to boat ownership.

“They always say that becoming a boat owner is like pouring money into a hole in the water. In the last two years, WHB became a hole on Main Street that I kept putting money into,” he said.

The operating address for WHB Real Estate is now attached to Mr. Ficara’s Westhampton Beach home, he reported. He also has a real estate business in Coral Gables, Florida.

As for the other real estate shops in Westhampton, First Hampton International Realty merged with Kerrigan Country Realty in March, and Town & Country Real Estate acquired Phillips Beach Realty this year as well. Sea & Surf Realty, also based in Westhampton Beach, went out of business a few months ago.