To Further His Vision, Developer Has Purchased An Array Of Downtown Hampton Bays Parcels

Community members have spoken, for years now, of reports that a developer was buying up property in downtown Hampton Bays.

It appears that a dozen parcels, in fact, have been purchased by developers who say they have a plan for the revitalization of the hamlet — and have spent nearly $10 million quietly acquiring land on the north side of Montauk Highway, near Good Ground Park, with potentially much more spending to come, some say as much as $100 million.

Last year, Alfred Caiola, a part-time resident of the hamlet, appeared before the Southampton Town Board sharing his vision of a new downtown: a walkable space creating a new Main Street-type business district, replete with shops, cafes and residential units, along the southern edge of Good Ground Park, just off the busy current Main Street, Montauk Highway.

Caiola is the principal and chief executive officer of the Caiola Real Estate Group. His bio on the company website notes that he’s “overseen the development of more than 25 major residential and commercial development projects in the New York City market.”

Responding to a request for comment, he declined to be interviewed but sent the following statement:

“My family has been living in and supporting Hampton Bays for over 40 years. My uncle and his family are the ones who have the animal farm on Lynn Avenue for many years. Surrounded by water, Hampton Bays, with its beautiful beaches, has the most waterfront restaurants in all the Hamptons. It is also the largest year-round community in the Hamptons — and one that should not have a downtown that is so highly distressed, and in such dire disrepair.

“My vision for Hampton Bays is to create a charming, thriving, pedestrian-friendly downtown. It’s unfortunate that we have wasted so much time due to misinformation and false narratives by a few.

“This is a labor of love for me,” he continued. “We are here to create something beautiful, and I am happy to hear that there is so much positive energy and interest.”

“I think what Mr. Caiola is trying to do is develop Montauk Highway to Good Ground Park as a pedestrian-friendly downtown,” Supervisor Jay Schneiderman confirmed.

Schneiderman speculated that the developer is “looking at an over $100 million investment in the downtown.

“We’re fortunate one individual or group is willing to make such a substantial investment,” Schneiderman continued. “I don’t think this is an attempt to make a quick buck. I think he cares a lot.”

The Hampton Bays Downtown Overlay District legislation, which would guide development and allow for the vision’s fruition, is currently the subject of litigation and stalled.

The overlay district would be key, Schneiderman said, because the current zoning “fosters development more like Jericho Turnpike.”

Despite the stalled overlay district proposal, Caiola’s team is slated to make a presentation at the August 29 meeting of the Hampton Bays Civic Association focusing on the planning measure.

Early discussions of the overlay district predate the land acquisitions, but a push for its creation ensued as the land buys commenced, with consultants hired by the town in 2016.

According to Southampton Town and Suffolk County property records, nine parcels along Montauk Highway between Cemetery Road to the west and Squiretown Road to the east, as well as parcels abutting Good Ground Park, are owned by LLCs with addresses tracing to Caiola Real Estate Group.

Another three pieces belong to Good Ground Commons Inc. Its CEO, Gregory Small, partners with Alfred Caiola — he receives email through the realty group’s address.

Small likewise declined to offer comment for the record.

It appears the purchases began in 2015.

That year, an entity called 30STP LLC bought a 2.24-acre property at 30 Cemetery Road for $750,000. The Caiola Real Estate Group in Manhattan is listed as the address of the LLC. It was registered in October 2015; the purchase was listed by the town in December of that year.

Moving south to Main Street, lot number 132, purchased in 2016, is owned by an entity tabbed 132 W Montauk LLC. Owners paid $1.4 million for the 1.3-acre lot.

The database Open Corporates lists Caiola Real Estate Group as the registering agent for the LLC, giving a Manhattan address of East 63rd Street. The LLC incorporated in February 2016; the purchase is listed on the town website as of March 2016.

Moving east, 126 West Montauk Highway was picked up for $400,000. Just a quarter acre, it, too, was acquired in March 2016 by an entity called 126W Montauk LLC, incorporated in February of that year. The website Open Government, New York, lists the realty group’s address as its contact.

Next door to that parcel is 120 West Montauk Highway, a 0.68-acre piece owned by 120 W Montauk LLC. Its primary mailing address is listed as B&L Management Company-Alfred Caiola. The developer paid $800,000 for the land in October 2015, the LLC formed that September. That sliver of land fronts on both Main Street and Good Ground Park.

The next property, owned by 114 W. Montauk LLC, abuts 120 to the north with frontage on the park. It was, likewise, purchased in 2015, with B&L Management listed as the contact address in town records. The developer paid $975,000 in October 2015, with the LLC incorporated the month prior.

An entity known as Good Ground Commons Inc. is the listed owner for the next three properties adjacent to the south end of the park and stretching to Main Street, according to county records.

The first piece, adjacent to the park, 100 West Montauk Highway, was purchased in 2016. Just about a half acre, it went for $650,000. Next door, heading east, is another Good Ground Commons parcel, 92 West Montauk Highway, which measures 0.7 acre and went for $250,000 in 2016.

Next to that, heading east, is a parcel labeled 84 West Montauk Highway. In 2016, the Hampton Bays Fire District sought public consent for its sale for $1.3 million.

The proposition for the sale lists Alfred Caiola as a principal of B&L Management and Good Ground Commons as the purchasers. But the town’s website notes a caveat, stating the property is part of a subdivision not yet approved and states the deed is not yet recognized.

The next two parcels on Montauk Highway, numbers 76 and 74, are owned by similarly self-titled LLCs and also list Caiola Real Estate Group as the corporate contacts. The LLC 74 W Montauk was formed in February 2016, with the land purchased for $975,000 from Good Ground Commons Inc, that March. Good Ground Commons had bought the land in 2015.

Next door, an identical deal occurred, with the LLC acquiring the land from Good Ground Commons for the same price and during the same time frame as its neighbor.

The next parcel, 68 West Montauk Highway, fronts both the park and Main Street. It’s owned by an LLC with the eponymous title 68 W Montauk LLC, which traces to the realty group. A 1.72-acre piece, it went for $1.3 million. The purchaser was Good Ground Commons Inc, in March 2016. The LLC formed the previous month.

In all, 13 separate parcels abut the south side of Good Ground Park. LLCs tracing to the Caiola Real Estate Group own three of them, plus the Cemetery Road piece to the western edge of the park. Good Ground Commons Inc. is the listed owner of three on the county map, including the fire district land purchased with a Caiola LLC.

The Town of Southampton also owns two properties adjacent to the park.

Entities with ties to the realty group own seven of the 28 parcels along the north side of Main Street. No other entity owns as many parcels on the north side of Montauk Highway stretching to the park. In all, the investment adds up to nearly $10 million.

That’s just the property purchase, even before any development occurs, Southampton Town Councilwoman Cynthia McNamara pointed out.

She said she could see how people could be wary of one developer buying so much land, but, on the other hand, she said, “It could be a good thing for continuity.”

“I could see it either way,” the lawmaker said, emphasizing that she’s never met Caiola.

The ability to sit down with just one person, rather than an array of property owners, could make it easier for community members to share concerns and ideas for their hamlet, McNamara observed.

“I think it’s great somebody wants to invest in Hampton Bays,” she said, noting that it’s in the developer’s best interest to craft a development plan that the community wants to embrace. “Nobody wants their name on something that’s awful.”

The Caiola name is not overtly attached to all the purchases. Rather, the developer is the agent listed for the LLCs. According to Richard Whalen, an Amagansett-based attorney whose acknowledged expertise is land use, purchasing land, especially commercial property, using an LLC is a common practice, providing several benefits.

The owner is not personally liable for any injuries that may occur on a property. “Most people protect themselves with property insurance — an LLC is really belt-and-suspenders,” he explained, meaning adding even more protection.

Using an LLC also benefits owners who have adjacent parcels, Whalen explained. “As a basic principle, you never want to put adjoining property in the same name,” he said. To ensure lands aren’t merged by zoning changes, he said, “You keep them separate.”

Finally, using an LLC provides privacy. “You don’t necessarily know who the owner is,” Whalen said.

While New York State requires the actual owners, the individual people behind an LLC, be identified “in some form,” Whalen said, tracking them can be require effort.

“The idea is that one can find out who the actual owners are,” he said, “but it’s a hassle.”

The principals of an LLC are called members. In an LLC, members may have different interests in a property, as opposed to shares of stock in a corporation, which has officers and stockholders.

Responding to the list of LLCs that carry the same name as the property addresses in Hampton Bays, he said of people who form the companies, “They’re usually not very creative with the names.”