The Real Deal New York

Southampton’s Capri Hotel up for sale as part of trio

Steven Kamali, W South Beach owners look to unload recession-era portfolio

December 04, 2013 06:45PM
By Katherine Clarke

Capri-Hotel-For-Sale

Jackie Mansfield, David Edelstein, Steven Kamali and the Capri Hotel

A trio of hotel investors which snapped up Southampton’s famed Capri Hotel in 2011 is now looking to sell the property plus two other Hamptons hotels.

The partnership, which includes hotel investor Steven Kamali, the former owner of Montauk’s Surf Lodge, and W South Beach owners David Edelstein and Jackie Mansfield, has tapped commercial brokerage HFF to market the properties. HFF said it expects that the 143-key portfolio could fetch up to $20 million.

The brokers on the deal include Daniel Peek, a senior managing director at HFF, and Manny De Zarraga, executive managing director, as well as KC Patel, Elizabeth Schuster and Colin Oberg.

In addition to the 32-room Capri, which sits on 2.3 acres at 281 County Road, the portfolio also includes the Atlantic Hotel, a 62-room property on 4.6 acres at 1655 County Road, and the Bentley Hotel, a 40-room hotel on 2.6 acres at 161 Hills Station Road, all in Southampton.

It was not clear what the partnership paid for the properties in 2011. Kamali, speaking on behalf of the ownership, declined to comment.

“Our expectation is far less than the $500,000 per room trades that have occurred out in Montauk and in the Hamptons, albeit by the water,” said Patel of HFF’s pricing expectations.

For instance, he noted, the East Deck Motel at Ditch Plain in Montauk, a 30-key property, recently sold for $15 million in November.

“The opportunity is for someone to rebrand these assets. The potential is there to create a very end-user specific kind of destination,” he said, using examples like an Aveda Spa hotel or a destination wedding location for same-sex marriages.

While the owners invested “significant capital” into renovating the properties following their purchase in 2011, Patel said there’s still plenty of room for upside for prospective buyers.

  • irobot

    what’
    s wrong with DE’s lips

  • Hamptons Broker

    You cannot correlate Montauks demad on the hippest beach in the Hamptons to the commercialism and traffic of these three hotels 30 40 miles to the west on the highway. People come to the Hamptons to relax and have a vacation, a strip hotel isnt that no matter how much lipstick is put on it. Good luck with that as it will all come down to cash flow and how much risk a buyer is willing to take for the locations.

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