Lobster Inn Property Goes On The Market - 27 East

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Lobster Inn Property Goes On The Market

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author on Mar 3, 2017

Long-targeted for residential development, the 10-acre Lobster Inn property on both sides of Inlet Road in Southampton has hit the market for $11.5 million.

Condominiums were envisioned for the site, in a project dubbed “The Maritime.” Douglas Elliman Real Estate is now pitching the opportunity to build 13 luxury homes or 25 townhouses, with a 48-slip marina.

The highly visible property, which actually consists of three adjoining parcels, sits just north of the highway, where State Route 27 meets County Road 39. It includes waterfront, a dock with multiple boat slips, and access to Cold Spring Pond and Peconic Bay.

In 1969, George “Skip” Tollefsen opened The Lobster Inn there, and 40 years later he received Southampton Town Zoning Board of Appeals approval to build 25 beach-cottage-style condominium units on the land. He then sold the property to Peconic Bay Marina LLC in 2011. The Suffolk County Health Department would not allow 25 residential units to be built there without a sewage treatment system, but in 2014 a plan was submitted that included one, and the applicants also sought to change the use of the Lobster Inn from a restaurant to a clubhouse.

Randy Riess and Tim Burke had operated a restaurant there, called Lobster Grille Inn, for four years. They moved out in October 2016, saying the landlord, Eldad Levy, the president and CEO of Centrock Corporation in Manhattan, could not guarantee them the space through the summer of 2017, so it didn’t make sense to stay.

According to Douglas Elliman, the property can continue to be used as a restaurant, though a variance is in place to allow for townhouses. However, site plans are not yet approved.

“A buyer can bring his own imagination and amend or re-address what is approved by the town,” listing agent David Donohue said.

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