There was notable unrest in certain pockets of the local real estate community when hedge fund honcho Barry Rosenstein bought 60, 62 and 64 Further Lane in East Hampton for a reported $147 million—a record for a residential property in the U.S.—from the estates of Christopher H. Browne and Andrew Gordron, and it was reported that no broker was used in the deal. When the deal was reported in May 2014, it was the price that made headlines. Now a lawsuit is putting it back in the news.
According to an $8.8 million suit filed by The Corcoran Group against the buyer and the seller in State Supreme Court, Corcoran agent Tim Davis was awarded an exclusive listing for the property and structured the sale, and Corcoran came up with the plan to package the three properties for an asking price of $150 million. The complaint alleges that in April, Corcoran had an offer of $155 million from another qualified buyer, but that Rosenstein negotiated directly with the seller for the eventual $147 million sale price—and thus no commission fee was paid.
Along with Rosenstein, also named in the lawsuit are Scott Bessent and William H. Wright II, two trustees Browne’s estate, and Elizabeth Dellenbaugh, a trustee of Gordon’s estate. Representatives for Rosenstein have stated that the dispute is between the broker and the sellers, not Rosenstein, and that he should not be part of the complaint.