From unique waterfront homes decades in the making to bidding wars over undeveloped lots, the Hamptons resi market is hotter than this summer’s record temps.
With over 20 years of experience in the Hamptons market, Douglas Elliman’s Atlantic Team of Justin Agnello, Hara Kang, and James Keogh is ready to face the heat and add value for their clients. Last time with spoke with the trio, we learned how they put their heads together to take over the Hamptons market; this time, TRD sat down with Agnello, Kang, and Keogh to get an inside look at how they’re helping sellers and developers leverage the unique value-add opportunities that are presenting themselves around the Hamptons and get an inside look at their latest crop of listings.
Long Term Thinking
The luxury resi market in the Hamptons has grown during the last 20 years, with no signs of slowing.
“These investments have never gone down over time,” explains Keogh, referencing a recent longitudinal market report about property value in the Hamptons.
That long term value helps explain why The Atlantic Team has seen such strong interest from developers in Hamptons land, with devs from around the country climbing over one another to, as Kang puts it, “scoop up whatever they can possibly get” at “a feverish pace.”
“If it’s priced well, it’ll sell in less than a week with multiple offers,” says Kang. “Our investors and developers from all over the globe want more skin in the game with new developments in the Hamptons. They want exposure to the Hamptons as it’s a tougher market to get into with its limited supply of inventory, and because it consistently attracts high-net-worth clientele.”
The team’s track record speaks for itself.
“We’ve sold close to $50 million in land so far this year,” says Keogh, who, along with Kang and Agnello, emphasize how they work with sellers to prepare their land so that they can realize the most value at market.
Take, for example, the 7.01 acre lot at 26 Jericho Rd. Since we last spoke with the Atlantic Team, the land, which had a last asking price of $16,995,000 and can be subdivided into three lots, has gone into contract. A similar story played out with 136 Trelawney Rd, last asking $6,700,000: the Atlantic Team “quarterbacked” the process for the seller, not only walking them through subdividing the land to maximize value, but also working to get approval from the town and get new wetlands surveys.
“You give the seller a lot more opportunity when you paint the picture of what can be done for developers,” explains Agnello. “We prep it so the seller can get the maximum amount of money.”
For developers, these deals are no-brainers; as Keogh emphasizes, each of the three new lots at Jericho will soon have houses on them that will go for as much as $20 million.
The Atlantic Team operates at both ends of the development process, working with landowners to sell undeveloped tracts to developers and then with developers to sell their finished homes to eager buyers. The recently-released 191 Montauk Hwy is a perfect example of the end stage of this development pipeline and is one of the finest new construction homes in the Hamptons currently on the market.
The Cream of the Crop
In addition to land and new construction, The Atlantic Team proudly offers an exceptional selection of the finest residential listings in The Hamptons.
33 Springwood Way, “the only newly built property currently for sale on the water,” is a 9,000 square foot new construction home on an acre lot in East Hampton. This custom-built residence features a top-of-the-line chef’s kitchen, home gym, media room, and even a doggy grooming station, all set against the backdrop of stunning Three Mile Harbor water views.
If you’re looking for Hamptons homes, you’d better act fast, as the recent bidding war over the well-appointed 4 bed/2 bath at 50 Saint Marys Lane proved.
The $44.5 million oceanfront home is a true one-of-a-kind property. First built in 1970, the property recently underwent approvals for a 1,500 square foot expansion, which took years of effort to clear permits and get approvals.
“We secured a deal with a purchase price that far surpasses the asking price, and the figure will leave you speechless,” says Kang of the home, which is now under contract after what he describes as “one of the most aggressive bidding wars we’ve seen since COVID.”
But the Team really came alive when telling us about 33 Lily Pond.
“You could never build a house as close to the ocean today,” explains Agnello. “They’re completely grandfathered in for what they have.”
The property comes complete with a guest house, tennis courts, jacuzzi, pool, and sauna, as well as a breathtaking expanse of oceanfront and white sand beach views.
“It’s a good example of preexisting, non-conforming aspects really unlocking value,” says Keogh of the two acre estate. “If you’re buying it for forty, it could easily be worth eighty one day.”
Adding Value
From 33 Lily Pond to 26 Jericho, The Atlantic Team sees nothing but value adds across the boards in the Hamptons today.
“The numbers very quickly scale up,” says Agnello. “We have the experience and can advise our clients on how to maximize the value for these developments and lots.”
Agnello, Kang, and Keogh have heard the same sentiment over and over from developers: over the long term, there’s just no losing when it comes to Hamptons development. Even in slow years, devs can hold or rent out their properties while waiting for the inevitable upswing.
“We’ve seen it over and over these last 20 years,” says Keogh. “Things that we thought no one would ever buy that new developers built get sold for a profit.” Whether it’s subdividing a piece of land like 26 Jericho or finding a generational opportunity at 33 Lily Pond, “the numbers quickly scale up.” After two decades in the Hamptons, The Atlantic Team has been on every side of the deals process, and they have the contacts and experience to prove it. Has any other team transacted more property sales in the Hamptons than the Atlantic Team?