The Sands Motel in Montauk Lists for $28 Million

The Sands Motel in downtown Montauk hit the market last week for $28 million. Hal Zwick and Jeff Sztorc, at Compass Commercial in the Hamptons, have the exclusive.

With more than 250 feet of frontage on Montauk Highway, the property offers 360-degree water views of the Atlantic Ocean and Fort Pond and is located just across the street from the ocean beach. There is also a pool on the property facing Fort Pond.

“The Sands Motel has been a cherished part of the Montauk community for generations,” says Zwick. “This property presents a rare opportunity to shape the downtown district with a hotel that mixes Montauk’s charm with modern accommodations.”

The Sands Motel complex, long under family ownership, is comprised of 71 S. Emerson Avenue, 79 S. Emerson Avenue, 3 S. Emery Street and 666 Montauk Highway, totaling 1.16 acres.

Richard J. Hausman, who owned and ran the motel that his parents first built in 1951, died in early 2022 at the age of 97, according to an obituary in The East Hampton Star.

While currently closed, the accommodations include a 19,000-square-foot hotel complex with three guest room buildings (both one and two stories) with a total of 43 keys. There is also one small building being used as a rental.

The motel rooms offer a mix of one- and two-bedroom units, each with one bathroom. Fourteen of those units also feature small to medium-sized kitchens. They range from 150 to 360 square feet in size.

On the 666 Montauk Highway property, there is also a two-bedroom cottage with a living room, a kitchen and a bathroom on the ground floor.

“It is extremely rare to have an asset like this hit the market with such long-term family ownership,” Sztorc says. “What makes it unique is the convenient location in downtown Montauk while still capitalizing on panoramic water views. The size of this hotel, along with the pool and location, put it on a very short list for full-service Hamptons hospitality.”

Two of the buildings contain basement spaces that are utilized for mechanical and storage space, as well as laundry services.

The building at 71 S. Emerson Avenue is L-shaped with an overall length of 250 feet and a width between 30 and 35 feet. Approximately 10 of the units in this building have been renovated over the past decade. Each offers a balcony or deck.

The 79 S. Emerson Avenue building is rectangular in shape shaped and measures 85 feet in length and 42 feet in width. There is also a small office/reception building.

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