Transaction highlights, June 10 - 27 East

Real Estate News

Real Estate News / 1416750

Transaction highlights, June 10

author27east on Jun 7, 2010

465 Captain’s Neck Lane 
Village of Southampton $25,000,000 (Vacant)

This sale, the highest of 2010 to date, is comprised of two nearly identical adjoining vacant parcels. Each is approximately 4 acres, just south of the Southampton Village center and each fronts directly on Heady Creek and faces due west, providing for sunset views.

Because these are single and separate parcels, an owner could choose to construct two entirely separate homes or a large home on one and guest cottage on the other. There is a pre-existing dock on one parcel, which may effect valuation of the lots as it is extremely difficult to obtain permission to construct a dock today.

This sale presents an interesting case study in real estate flipping over the last 15 years. In 1994, this property was purchased for $3.1 million by an owner who sold five years later at the height of the dot-com bubble for $6.5 million, reaping a 15 percent compounded annual return. Two years later, it was sold for $8 Million for an 11 percent annual return. The next owner held it for five years and sold it at the height of the real estate bubble in 2007 for $21 million, reaping a gross profit of about $13 million, an enormous 22 percent annual return.

Today, this sale for $25 million, by the owner who paid approximately $21 million at the height of the market, represents a 5 percent return. While this may not seem like a good return, especially in comparison to previous owners, it is important to consider that during the same time period, many assets dropped in value by 30 percent or more.

Even in the worst of times, high quality vacant land in the Hamptons can be a safe investment. And in the best of times, it can offer very large returns.

3 Musket Lane
Unincorporated East Hampton $760,000

This house is located in the Settler’s Landing area of the Northwest Woods, far from the East Hampton Village center but an easy walk to the western shore of Three Mile Harbor.

The house is sited on .5 acre, and is 2,200 square feet with three bedrooms, a great room with fireplace, den, large deck, full-size pool and a sunny backyard. The seller purchased this house new in 1999 for approximately $340,000. This sale represents an annual return 7.6 percent, which is above the 6.5 percent national average.

This sale is a good example that well-priced houses, especially those under $1 million in good condition, are generating lots of interest and selling quickly.

43 Indian Run Road 
East Quogue, $802,500

This .7-acre lot is located directly on Tiana Bay and has about 100 feet of bay frontage with bulkhead in place.

Presently, this lot is improved with a small 1949 cottage with two bedrooms. The lot is surrounded by much newer and larger homes that have sold in recent years for approximately $2 million.

This is an important sale for valuation purposes in this neighborhood, since it was essentially a land sale and the expectation is that in the near future the existing cottage will either be replaced with a new home or significantly expanded.

You May Also Like:

Quail Ridge Residents Scramble After Apartments Are Purchased for Redevelopment | 27Speaks Podcast

The tenants of Quail Ridge — the two dozen studio and one-bedroom apartments spread over ... 3 Jul 2025 by 27Speaks

Water Mill Property Where Hal Buckner and Dorothy Lichtenstein Left Their Marks Is for Sale

A Water Mill property that hosts a former dairy barn turned artist’s studio and a ... 30 Jun 2025 by Brendan J. O’Reilly

Sundays on the Bay Hits the Market

Sundays on the Bay restaurant and marina on Dune Road in Hampton Bays has hit ... 29 Jun 2025 by Staff Writer

Hamptons Rental Market Remains Alive and Well

To paraphrase Mark Twain, reports of the demise of the Hamptons summer-rental market are greatly exaggerated. “Any hint that the Hamptons rental market is anything but robust is completely wrong,” said Corcoran associate broker Gary DePersia in East Hampton. An interesting dynamic is stirring in the Hamptons vacation-rental market. Although there has been an unprecedented rise in short-term rentals and the aftershocks of the COVID-19 pandemic linger, it has been a bumper crop year for Wall Street, interest rates have remained steady and a new breed of demanding customer is emerging. Despite it all, the Hamptons vacation-rental market remains as ... 19 Jun 2025 by Joseph Finora

Jon Vaccari Joins Noble Black & Partners at Douglas Elliman

Jon Vaccari, a longtime resident of Sag Harbor, has joined Noble Black & Partners at ... 18 Jun 2025 by Staff Writer

Appeals Court Sides With Landowner Over Southampton Village ZBA

Southampton Village has lost an appeal that sought to reinstate a Zoning Board of Appeals ... 12 Jun 2025 by Brendan J. O’Reilly

Last Parcel of Startop Ranch in Montauk Sells

The last plot of land at Startop Ranch in Montauk, 107 Startop Drive, has sold ... by Staff Writer

Hamptons Real Estate Roundtable, Memorial Day Weekend 2025 Edition

With Memorial Day weekend about to kick the Hamptons into high season, The Express News ... 22 May 2025 by Moderated by Brendan J. O’Reilly

Au-Delà Real Estate Vows To Go 'Beyond'

Au-Delà Real Estate, a new boutique real estate firm based in East Hampton, is now ... 20 May 2025 by Brendan J. O’Reilly

AI Helps Rental Seekers Find Homes That Match Their Aesthetic Preferences

Consumers increasingly have an expectation of superior, more personalized service based on their own particular ... by Steven Loeb