Issue #48, March 9, 2007

Real Estates

by Diane Strecker

The recent sale of The Church Estate has caused quite a stir in Montauk. The former owner of the property, Paul Morrissey, who once jointly owned the Moorland oceanfront compound with Andy Warhol, his friend and business associate, is now nearly $30 million richer. The question of late has been, “will he reinvest in the East End?” Reportedly, Mr. Morrissey has been viewing some not so trashy trailers in Montauk. In the Montauk Shores Condominiums, a trailer can run you upward of $1 million, depending on its size and proximity to the ocean. “The Park,” as it was first known, originally operated as a campsite and trailer park where people brought travel trailers or tents each summer. On the west side of the park were actual train cabooses that served as rental cabins.

By the late 1960s, Ditch Plains Oceanside Park had evolved to housing mostly anchored-down mobile homes that had been there for many years. In 1975, the place turned condo and Montauk Shore Condominiums came to be. At that time, the area had already become the surfing Mecca of the East Coast. Today, the property consists of mostly doublewide trailers transformed to resemble beach cottages. There is a pool and spa is going in. Why would one pay upwards of $1 million for what is, for all intents and purposes, still a trailer? Because one of the most popular surfing beaches on the Eastern seaboard is just steps away. Estates such as Eothen, Cavett’s, Tick Hall and Paul Simon’s Enclave are all just down the beach.

The quiet seclusion and low-key lifestyle set the Montauk Shores Condominiums in a class by it self. The ocean is all around you. Summering at Montauk Shores is not about owning real estate, but about experiencing a way of life. Last season, singer Jimmy Buffet made an offer on one of the trailers, but it was sold to another buyer at a lower price. This is one close-knit community. This past summer, the New York Times featured the tiny, tastefully unique 1950s travel trailer of a retired New York designer named Vince Pacchiana, who has been living in “The Park” since 1975. Like many of these properties, his trailer exudes personality and looks more like a surf shack than a trailer.

In Montauk, hotels, restaurants, a ranch, marina, and even the entire Gosman’s Dock complex have gone on the market recently. Now, restaurants, inns, motels, vineyards, marinas and golf courses on the North Fork are all following suit. Large land parcels on the North Fork have been sporting “For Sale” signs as well, probably because of their potential to become restaurants, inns, motels, vineyards, marinas, and golf courses. Land can also easily be sold as prospective residential development, as much of the land on the North Fork has already been sold to become.

What most of these properties on both Forks have in common is that most have been family-owned for many years. The equity that has swelled over the years is more than these owners ever dreamed of, and has earned them many millions – in some cases the very high millions – encouraging many to cash in their chips. Many families have already become, or are on their way to becoming multi-millionaires by doing just that. Gosman’s is expected to sell for close to its $55 million price tag. The longstanding family-business-turned-local-empire is one of the most thriving businesses on the East End. Many realtors expected this property to list at a much higher price, and can now foresee the right buyer coming along quickly due to its relatively low price.

Because of tight regulations imposed on farm acreage, much of the land for sale on the North Fork can never be used commercially, as some regulations prevent businesses or muti-family housing units from being built on farmland. Many of these projects must commit to dedicating a good part of the land to open space. The East End has been a leader in bringing environmental concerns to the forefront and goes to great lengths to preserve the natural beauty that has been attracting nature-starved city folk to the Island for so many years. Groups such as the Peconic Land Trust and the many village conservation groups throughout the East End towns work tirelessly to maintain the delicate balance between progress and preservation. Most East End brokers realize the importance of working hand and hand with these groups, and their efforts have paid off. When visitors drive east, they can still view the same quaint little towns that have been the allure of this area for hundreds of years.

You can reach Diane at eastendrealest@yahoo.com.