125 Mid Ocean Drive Bridgehampton, $11,450,000 (Vacant)
This 2-acre lot is located due south of the center of Bridgehampton and is on the ocean, with 160 feet of frontage. It is vacant and uncleared, with the possibility of constructing a 6,000-square-foot house with pool and tennis, although numerous permits would be required to do so.
This sale follows on the heels of a similar lot with a teardown home that sold last week in Southampton for $20 million. In addition to the differences in location, the fact that there is no preexisting teardown house here might account for part of the difference in price.
While there should be no question that a house can be built on this lot, due to today’s environmental rules there are many hoops to jump through to build on a parcel such as this one. Buying a teardown gives a buyer some certainty as to what can be built upon it and it is generally much easier from a permit perspective to rebuild a teardown than to start from scratch.
The sellers purchased this lot in 1996 for $1,450,000. This sale represents a giant annual return of almost 15 percent. With very low taxes and insurance, and no maintenance, if one wants to make a pure investment in real estate in the Hamptons, it is probably impossible to beat buying high-quality land or a teardown in an excellent location.
370 Ferry Road North Haven, $36,000,000
This unique 55-acre property known as “Tyndal Point” is located on the northern tip of North Haven, just east of the South Ferry to Shelter Island.
The property is in the final stages of subdivision into six lots, which is reflected in the price, although published reports state that the owner intends to hold the property intact for his family. Even though this is essentially a vacant land sale, there are currently three homes and two carriage houses on the property, which are of limited value.
Much more important, there are two pre-existing deep-water docks on the property, and approvals in place for additional docks. Obtaining approval for a dock or for dredging in the Hamptons is very difficult today due to environmental restrictions, and there are very few private properties that can accommodate large vessels. Although the location of this property is somewhat remote, literally on the most northerly point of the Hamptons, it is spectacular—with a private dredged lagoon; large pond; orchards; miles of walking trails; sandy beaches; and views of the sunrise, sunset and the shoreline of Shelter Island’s preserved southern end and of Sag Harbor.
This is one of the most expensive sales of the year to date, along with an oceanfront home in Southampton that sold recently for $32.5 million. And it’s one of the most expensive sales ever north of the highway.