Montauk's Oceanside Beach Resort Sells For $10 Million

The Oceanside Beach Resort is one of the first things visitors see when they drive into Montauk. And the faded yellow building with the smiley-faces on one wall and a zig-zag roof is about to be under new management.

On Monday, October 17, the resort’s owner, Ken Walles, closed a deal to sell the motel to real estate developer Jon Krasner, along with partners Mr. Krasner declined to name, for $10 million. The deal to sell the 50-year-old Oceanside—which had not been on the market—was in the works for several months, he said.

Mr. Walles, president of the Long Island Hospitality and Leisure Association, has run the resort for the past 18 years after buying it for $1.4 million. Mr. Krasner also recently became the owner of two eateries in Montauk’s nearby business district: the Saltbox restaurant and bar, where O’Murphy’s stood for many years, and the venerable Shagwong Tavern.

“When you have an opportunity for real estate off of the beach, you have to take it because there are very few like it,” Mr. Krasner said of the Oceanside Beach Resort, which is on an oceanside piece of property just less than an acre. “I have a huge amount of respect for Ken Walles, and I think we’ve become good friends,” Mr. Krasner said. “I hope to continue the momentum that he built for the resort and create a better stay-over experience for the guests.”

Mr. Walles, who was out of town this week and could not be reached by phone, was represented in the sale by Jack Botero of BlackBrick LLC.

“I think we’re seeing a changing of the area,” Mr. Botero said of Montauk in general. “Kids who used to come here are now grown up and want to see the resort remain successful with more amenities, like better food and beverage and good decor.”

Mr. Krasner said he’s not sure if he will rename the resort, which is at the west end of Kirk Park Beach, but did say renovations will be done over the winter, with the Oceanside closing in the next couple of months and then reopening in the spring.

“I know the market of Montauk and I think, speaking long term, this is a very unique location and the town has a long way to grow,” Mr. Krasner said. “I hope that we provide a service that makes the beach and the property better,” he said, though he did not specify how.

“We want people to utilize these assets to bring Montauk to life,” Mr. Krasner said. “The location and the land is so beautiful and underutilized. Montauk is one of those special towns, and we want to continue moving Montauk forward.”

The two-story motel has a swimming pool and access to the Kirk Park ocean beach. Prices under the ownership of Mr. Walles started at $85 off-season, rising to as much as $475 in the high season for certain rooms.