Brokers Predict It's The Year Of The Deal

By Lona Rubenstein | 8 Comments

Southampton - I sent Valentine's Day greetings to my copious industry email list, mentioning that I would love to get some back. Replies (reported below) could be counted on both hands. Don't bother writing about what that means. I know.

From: Jackie Dunphy, The Corcoran Group: "Happy Valentine's Day! Yes, we all need a good virtual hug. Seems all brokers are busy this weekend - rentals and sales. I'm showing this listing twice today and once tomorrow for sale. Plus, I'm taking out buyers this afternoon. I think people with money are tired of not spending and see real estate as a good place to park their dollars. As always, so good to read your column!"

Property courtesy of Corcoran Group.

From: Bob Scribner, CEO Hamptons Realty - Westhampton Beach: "Just to report I have had three contracts in last three weeks, two oceanfronts, 5.1 mil, 3 mil, and one land side at 995k. None of these folks were Wall Street - one doctor, one business owner, one lawyer. April is going to be a joyous month [as to commercial transactions] our space is lagging in rentals, sales are non-existent." (Don't know if that one counts because Bob did not say he loved us).

From: Leslie Reingold Sotheby's International Realty East Hampton, New York, lovely beach view card.

From: Jude Lyons broker - Westhampton Beach: "You too, of course, but ever since I have been in real estate out here this weekend has taken on a new meaning - the beginning of the season! In New York City it meant a three-day weekend but nothing special. It's hard to tell about this season. I feel the weather has hurt us more than the economy. Phones are ringing. I'm booked solid for the weekend, more buyers than renters but who knows? It's a matter of seconds before Barak loosens the mortgage requirements and that is truly what we all need."

Just a question: wasn't it loosened mortgaged requirements part of the mess? Maybe Jude means reasonable mortgage requirements.

From: Lori Barbaria, Prudential Douglas Elliman: " I send you so much love back. You are good and kind and funny, so here's a ton of love. Here's what's going on in the market - not much. People looking and some great deals like not in a decade. It will happen in April - there will be rentals and sales. We'll get through it."

Georgica Pond front property courtesy of Sotheby's International Realty

From: Judi Desiderio, a Valentine thought, plus some interesting stuff. Town & Country Report of the Top 10 Most Expensive Sales in 2008 on the East End and the median comparisons for the top 10 sale writing, "the median sale price for the 2008 Top 10 is $23,625,000, a 26 percent drop from the $32,000,000 median sale price of 2007."

Desiderio adds, "2009 will be the Year of the Deal. Deals will be had on every level and in every market, making opportunities abundant for the savvy, well - capitalized investor. The fortunes of the future shall be made from these markets."

A Top 10 List Of Area Sales
1. 104 Gin Lane - Southampton Village, $60 million, 1776 Investments Corp. to South Lane Properties LLC.
2. 120 Meadow Lane - Southampton Village, $27 million, Lauren and John Veronis to James M. Nicholson.
3. 338 First Neck Lane - Southampton Village, $26,608,701, 338 First Neck LLC to Whitehampton LLC.
4. 29 West End Road - East Hampton Village, $26.5 million, KT Trust to West End Fun LLC.
5. 338 First Neck Lane - Southampton Village, $25,250,000 FNL Land Trust to 338 First Neck LLC.
6. 39 Fairfield Pond Lane - Sagaponack, $22 million, William Spier to Fairfield Pond Partners LLC.
7. 57 West End Avenue - East Hampton Village, $21,450,000, Peter Morton Lifetime Trust to West End Partners LLC.
8. 94 Apaquogue Road - East Hampton, $20 million, Suzanne J. and John G. Cartier to County Wexford LLC.
9. 2170 Meadow Lane - Southampton Village, $20 million, Van & Amy Adele Greenfield to Kandinsky Escape LLC.
10. 22 Crescent Avenue - Water Mill, $19.5 million, Michael Picozzi to Carol Hertling and Frank Nickell.

Yes, well, when I would try to diet, often I would watch food shows and read recipes with calories I couldn't afford for some vicarious comfort. Maybe reading about those big bucks can give some solace to the rest of us that have more immediate needs.

In any case, if they have the money to buy out here, doesn't it follow that they have that money to spend out here? Because one way or another East End real estate is a very strange business.

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Comments

Guest (Tom D) from Westhampton Beach says:
North Fork realtor has it right. Sellers are still delusional. I've looked at about 10 homes in the past 2 weeks. Prices are still where they were 12 months or more ago. While you brokers constantly harp on properties selling if they are "priced right," you sure don't seem to be able to influence your sellers to do that. And I guess because the crooked Wall Street bankers continued to get their bonuses for their great work of 2008, North Fork realtor is right again - 2009 will be a thinning out and 2010 will be the real deals. The air is slowly coming out of the bubble just as it has in the rest of the country where things inflated beyond all reason.

Guest (hamptons surfer) from hamptons says:
tom d is funny. wall street bankers are crooked, sellers are delusional. the real crooks here are the unscrupulous real estate agents, spec. builders and mortgage firms that made sure their clients who couldn't afford the house in the first place... got the home with the no doc. loan. secondly the appraisers who artificially inflated house values so second mortgages would go through and general real estate values were over-inflated.

Guest (not quite right) from Southampton says:
Of the 10 on "Judi's" list, she got two wrong. Her third house, 120 Meadow Lane - had a record date of 1/2/09 (contract date 9/25/09) Since Record Date was in 2009, it did not belong on the 2008 list. Her 10th house, she got the address wrong. It is 122 Crescent Ave, not 22 Crescent Ave. Because 120 Meadow Lane doesn't belong, she missed 757 Daniels Lane, Sagaponack which was the 10th house @ $19,250,000.

Guest (eastender) from hamptons says:
didn't you all know....Hampton Bays doesn't count

Guest (north fork realtor) from southold says:
2010 might - just MIGHT - be "the year of the deal". 2009 will be the year of the thinning out. To anticipate otherwise is a delusional view, as much as it would be nice to pretend otherwise. There seems to be a misconception that "normal" will return - it's a new normal, with much lower pricing (bubble, anyone?)- so if you lose sleep over brokers going broke, you might have some restless nights, HS!

Guest (hamptons surfer) from southampton says:
Now I can sleep at night knowing that the real estate agents are making money.

Guest (Curious) from East Hampton says:
What/where is Red Cedar Point? Is it a project or did it sell for 35 million?

Guest (Don James) from Red Cedar Point says:
Who creates these top ten lists ? The 35 million plus project in Red Cedar Point I think ranks # 2. Get your facts together................