From stinging nettles to zoning violations, The Hamptons can be hazardous to newcomers who don’t have a local guide.
When they began looking at retail properties around the Hamptons, California-based developer Runyon Group and partner River Oak Properties asked colleagues in New York City, The Hamptons and Los Angeles to recommend a law firm with sophisticated transactional experience and local land use expertise. In our interview with Runyon group co-founder Joseph Miller, he stated that everyone pointed him to one firm: Adam Miller Group. TRD sat down with the Runyon Group cofounder and managing partner as well as attorney Adam Miller to get an inside look at how the firm’s local insights helped the California company successfully expand its portfolio to the East Coast.
From Montecito to Montauk Highway
Following the successful launch of The Post in Montecito, Runyon Group wanted to bring its model of revamping properties and showcasing independent retailers to a similar market on the East Coast: The Hamptons.
Runyon partnered with River Oaks Properties, a Texas-based real estate platform with deep retail roots, and Pegasus Investments Real Estate Advisory Inc. to bring the project to life.
“Four or five years ago, we made the decision to really bring our focus to the principal side of the business and concentrate on markets where we felt that there was not enough boutique retail, but certainly, a lot of demand,” says Joseph.
Runyon Group had been watching Hamptons two complexes, Water Mill Shoppes on Montauk Highway and an adjacent retail plaza, for nearly ten years. The buildings hadn’t been maintained over the years, and he saw plenty of potential upside.
“I have a partner who’s a fifth generation Southampton resident, and she can remember going to Penny Candy as a child, that was on that strip,” says Adam. “It used to be a very vibrant little area, and to see it go under-utilized when we all know that the East End has gotten more crowded and more year-round is somewhat surprising.”
It’s a reimagining that’s long overdue, especially considering the thriving real estate market and wealthy demographic.
“These are really special buildings,” says the developer. “We felt that our expertise across the country in developing and managing these kinds of best-in-class boutique retail centers in really special locations would be perfect to help these buildings achieve their potential.”
A complex deal
The deal was the largest retail transaction in Hamptons history, combining multiple buildings and multiple sellers with a host of complicated land-use issues. Due to the intricate nature of the deal, Runyon Group and River Oaks had confidence in its partnership with Adam Miller Group.
It was clear that Adam and his partners had the experience to work on a complex transaction and bring local expertise too which was a critical component of our needs,” says Joseph.
Adam notes that, thanks to his experience at a large New York City firm, the number of zeros in a deal is never intimidating. The real challenge comes from matching the client’s expectations with the nuanced nature of real estate transactions in the Hamptons.
Of course, Adam Miller Group was designed from the ground-up to provide clients with unparalleled access to local expertise. As we covered in our previous article, the firm’s partners include the current Sag Harbor Village Attorney and a former East Hampton Deputy Town Attorney.
That’s why the Runyon Group and River Oaks team trusted Adam and his partners Denise Schoen, Brian Locascio and Jameson McWilliams to guide the process and closing.
“Joseph and his partners come at this from the perspective of land stewards,” says Adam. “They’ve been really open to understanding that we are local experts. Instead of challenging us on each recommendation, they trusted our guidance.”
The Adam Miller Group’s knowledge of land use laws was essential to the success of the transaction. Not only was this project the only one in this zone classification in the Hamptons, but Runyon Group was also buying a second building on the highway, meaning that the firm had to understand the relationship between the two properties.
“That research included everything from parking to lighting to gross floor area to wet use versus dry use to requirements and septic flow,” says Adam.
The value of small town connections
Beyond the size of the deal, the transaction was exciting to Adam Miller Group because of Runyon Group and River Oaks” vision.
“Joseph came to us with the understanding that he really had to rely on local people,” says Adam. “It was a very exciting deal for us, because it allowed us to merge West Coast centric ideas with the East Coast realities.”
While some firms might stick to contracts, Adam Miller Group became a critical source of guidance for the California-based team. When it came to finding local talent, Runyon Group and River Oaks relied on Adam Miller Group for recommendations, including an introduction to the contractor and landscape designer chosen for the project.
“Our firm is so much more than attorneys marking up documents,” says Adam. “When Joseph asks us to help him put together a team, that is so exciting for me as someone who lives here, and someone who spent 23 years developing these relationships.”
Hiring Adam Miller Group turned out to be a critical move. The firm’s reputation was a major asset for the outsiders as they entered a new market and presented to the Southampton Town Planning Board.
“When someone trusts me enough to rely on my integrity, and then the integrity of the people I introduce them to,” says Adam, “that’s hugely meaningful.” It validates all of our hard work which often is done through community functions and deep local connections.
The Water Mill Shoppes deal is a fulfilment of Adam’s decades-long task of building the ultimately local Hamptons real estate law firm: more than just a font of knowledge, he and his partners open doors, solve problems and understand far more than local law.
“People all know Adam,” says Joseph. “Being involved with him and his firm gives us a huge amount of credibility.”
Learn more about Adam Miller Group at the firm’s website.