East Hampton firm buys Water Mill shopping center

The Mill is officially under new ownership.

Vault Development Partners purchased the Water Mill shopping center on Route 27 East for $13.1 million, the Hamptons Commercial Real Estate Team at Compass announced. The property in the Southampton hamlet has visibility on Montauk Highway, giving it some added appeal. There’s also a condo development underway next door.

A limited liability company sold the six-building shopping center, which spans 29,500 square feet, to Vault. Hal Zwick and Jeff Sztorc of Compass held the listing.

The 3.6-acre shopping center has 154 parking spots, including Tesla charging stations in the rear parking lot. Tenants at the complex include Provisions Natural Food Market, Tight Medical Spa, Water Mill Wine & Spirits and Hamptons Float. SoulCycle has also occupied space in the complex. 

All of the buildings are considered “turnkey” properties and there’s a mix of wet-use and dry retail tenants in place. Robert Zecher, chief executive officer of East Hampton-based Vault, said his team was “eager to enhance its offerings.”

The final asking price on the shopping center was $15.9 million, according to Behind the Hedges. In 2021, it sold for $8.7 million.

Vault also owns a mixed-use property at 105-107 Newtown Lane in East Hampton Village. It purchased the property in 2021 for $7.2 million and is already looking to sell it for nearly double.

The Hamptons retail market has been busy in recent weeks. LVMH CEO Bernard Arnault earlier this month paid $22 million for the property at 1 Main Street in East Hampton, the East End’s largest commercial transaction this year.

Plans for the building weren’t disclosed, but Arnault’s conglomeration has plenty of brands that can take space there. A sampling of LVMH’s holdings includes Louis Vuitton, Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Sephora and Tiffany & Co.