$25M Sag Harbor home sells to investor Michael Hirtenstein in shell condition

Sag Harbor Village’s waterfront moratorium was just extended, the East Hampton Star reported, but that didn’t stop developer Jay Bialsky from inking a deal there recently.

Real estate and nightlife mogul Michael Hirtenstein went into contract late last month on a waterfront home at 2 West Water Street asking $24.95 million. Bespoke Real Estate had the listing.

The 11,058-square-foot home is in shell condition, Bialsky said, with the buyer hiring his own general contractor to finish the project. Construction began nearly two years ago but faced delays during the pandemic.

“If it wasn’t for Covid, I would’ve been further along; it slowed me down about five months,” Bialsky said.

The project wasn’t affected by the town’s new development moratorium since it was approved before the ban was enacted.

Last fall, the Sag Harbor Board of Trustees approved a six-month ban on major developments as consultants discuss zoning revisions to preserve the waterfront area. The board voted on Tuesday to extend the ban to Feb. 1.

The zoning changes will strictly limit the size of new buildings in the town’s office and business districts. Bialsky’s three West Water Street projects are all technically in Sag Harbor’s office district, so no other new homes nearby can be anywhere near as large as the ones he built.

“In essence, they’re making these more valuable,” Bialsky said.

The West Water Street home purchased by Hirtenstein is a modern glass box with six bedrooms and six bathrooms across four stories. It features rooftop pools and two yacht slips that can accommodate 70-foot boats.