On Saturday we broke the news that the East Deck motel property in Ditch Plains, Montauk, has been put back on the market. To recap: the motel was sold in November 2013 for $14.75M. The new owners wanted to create a private surf club, as found in places like Hawaii, and they retained London-based architect David Adje to draw up plans for a two-story building. But there was considerable outcry from the community and from East Hampton Town, so the owners put on the brakes.
East Hampton explored purchasing the property using CPF funds. As we understand it, the process is as follows: the town has the property appraised, and then the town can offer up to 20% over that appraised value. The price offered by the town was only $8M, which would involve an almost $7M loss to the owners (leaving aside all the other fees). (Who on earth appraised five acres of Montauk oceanfront at such a low value? One acre of oceanfront in Montauk runs $7-8M these days.) So now the owners are listing the property for $25M.
Want to open your own boutique hotel? East Deck comprises five acres of oceanfront land with a 10,544sf building, including 30 single-story motel-style rental units, a coffee shop, decking, playground, parking, garage plus an oceanside swimming pool. The owners have also replenished the sand dunes in front of the beach.
According to Sotheby's broker Ed Bruehl, there has already been a lot of interest in the property from well-known players.
· East Deck [Sotheby's]
· All posts about the East Deck [CH]