The Real Deal New York

Surf Lodge sells, reduces code violations by half

April 30, 2012 01:00PM
By Guelda Voien

From left: Steven Kamali, a former owner of the Surf Lodge, and the Surf Lodge at 183 Edgemere Street

The Surf Lodge, the Montauk resort and restaurant besot by difficulties with the city of East Hampton, has been sold to a technology entrepreneur for an undisclosed amount. Michael Walrath, the purchaser, also recently bought another Montauk landmark, Lenny’s restaurant. 

The property, at 183 Edgemere Street in Montuak, was sold by hospitality consultant Steven Kamali in partnership with Jamie Mulholland, Jayma Cardoso and Robert McKinley. The deal closed today, Kamali said.

“The buyer’s offer surpassed our expectations,” Kamali said. “With our investors pleased, the sale just made financial sense.” He declined to specify how much Walrath is paying for the property, which includes a private beach.

Last month, a lawyer for the hotel and restaurant told a judge in the protracted dispute over the Surf Lodge’s nearly 700 pending code violations, that the hotel was for sale. Earlier this month, the Surf Lodge made a motion to dismiss the violations, and Thomas Horn, the attorney for the then-owners, indicated to the East Hampton Star that the city was still considering settling for a fine of as little as $100,000.

But a source said that the violations had nothing to do with the sale. “The town attorney’s office has looked at the motion to dismiss and, without argument, reduced the violations from 686 to below 280,” the source said, adding that “[they] would probably go down to 130 or less after more discussion.”

  • Northside

    good luck

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