Topic: Real Estate

You know times are tough when real estate agents are taking waitress jobs, albeit on Shelter Island so they don’t run into their clients while offering them the short ribs. The figures are out to prove that the Gucci belt is tightening as sales slow down. Suffolk Research Service Inc. released the first quarter figures for 2008 and present some statistics that, while sobering, are certainly not doom and gloom

Even in the Hamptons a $41.3 million sales price for a home is worthy of tongue wagging. That's a big number—at least for the common folk. But how much is it for Old Trees' most recent purchaser? We ran the numbers...

You may have heard yesterday's news about Alpha magaizine's hedge fund managers' earnings in 2007. The top fifty managers split $29 billion in personal compensation amongst themselves. It was enough to provoke Senator Obama into suggesting that we may need to raise the capital gains taxes during his debate with Senator Clinton last night. (Don't worry, as dyed-in-the-wool Hamptonites, we would never suggest something so outrageous.)

The man standing atop the Alpha list (appropriate title, no?) was John Paulson, founder of Paulson & Co., who reportedly brought home about $3.7 billion last year. This would be the same John Paulson who recently purchased Old Trees estate in Southampton for $41.3 million from real estate developer Rodney Propp, who himself had bought the property from Donald Burns for $39.25 million a few weeks ago. We're trying to keep up too.

So how much is $41.3 million for John Paulson? Here's a little math:

Annual Earnings: $3.7 billion
Earnings per Hour: $422,000 (every hour, of every day, all year)
Daily Total: $10,137,000
Number of Days of Work to Pay for Old Trees: 4

That's right, Paulson only had to work four days to make enough money to buy Old Trees in cash. Which is important, because unless you can afford three day weekends in the Hamptons, you're doing something wrong.

Southampton's Old Trees Reportedly Sold The Flipped [Newsday]
Paulson's $3.7 Billion Tops Hedge Fund Pay, Says Alpha [Bloomberg]
Old Trees Estate Official Site

The longterm effects of the groins that were installed at Georgica Pond have been debated for years now. A civil suit is currently being heard in federal court—and it could cost Suffolk County millions.

At issue: which way is the sand going? Convential wisdom has always held that the sands of Long Island are making a slow and steady drift west. (A few hundred thousand years from now, the drive out to Southampton from the city may be a lot shorter than it is today.) But in testimony heard before federal court today, an expert witness for Suffolk County said that, "a more complex analysis of sand movement along the shore shows that sand moves both east and west. Man-made structures are insignificant compared to the actual shape of the beach and the angle with which waves strike it."

Hmm. We're gonna have to scratch our heads over that one for a minute. Gary Ireland, who brought the suit and is claiming that the Georgica Groins are responsible for the erosion in front of his Southampton home, may not be satisfied with this answer, and we're betting he has an expert that will back up the east-to-west theory.

Check out the video below for Ireland's take on the situation, and stay tuned, because if Suffolk County loses this case, they're going to have to pay millions to pump sand back onto the beaches.

Expert says that rock walls did not cause erosion [Newsday]

OOPS! It looks as if we were too hasty jumping on the New York Post's report that Tiger Woods bought a $65 million, six-acre estate on Gin Lane in Southampton, labeled the "By the Sea" mansion.

We were making plans to get cameras ready on the Shinnecock Canal to spot the icon's 155-foot-long yacht and were planning to stick to Southampton Village roads in anticipation of a potential Tiger-spotting route between his alleged house and Shinnecock Hills.

But a new report from Newsday has us stopping the blitz:

Beate Moore of Sotheby's International Realty continued to cite a strict confidentiality agreement in not revealing the parties involved, but says she is "stunned" at the rumor that Woods was the purchaser of the property. "It is hilarious...I don't know where this comes from," she said, adding, "there's not an ounce of truth to it."

Sigh

Back to the office.

Tiger Woods' $65M Sand Bunker [NY Post]

Broker Says Tiger Woods Isn't Buyer of $65 Million Home [Newsday]

A new listing in Westhampton Beach is making the upper echelon stand up, take notice and even consider crossing the Shinnecock canal -- a $39 million historic estate. “Where else can you find 10 acres on the water in a Stanford White era home with 16,000 square feet?” asks exclusive agent Marcia Altman with Brown Harris Stevens. At a recent open house for a few select brokers there was one word whispered about, “Gatsby.” West Egg has clearly arrived.

A proposed subdivision in Bridgehampton to be called “Vintage Vines,” near Channing Daughters Vineyards, has set competing interests against one another. In one corner are former Southampton Town Councilman Dennis Suskind and his partner who are looking to develop the land as a business venture. In another corner we have the environmental interests of this aquifer protection district including the endangered tiger salamander. But also tossed into the ring is the Hamptons working class which is hoping for affordable housing.

The current proposal is to subdivide the 48.6 acres into 37 possible building lots. Some advocates hope the Town of Southampton will come up with an acceptable offer to purchase the land for preservation. For locals looking for a place to live, the possibility of including affordable housing may come at the price of higher density housing, up to 57 homesteads. In the middle is the current proposal of 37 lots with 19.5 acres preserved which would include the trail system.

So who will win in this contest -- the salamander, the local plumber, or the developers who hope to create a future for themselves and their children? Indicative of the challenges on the East End, this case brings up the questions of free enterprise, preservation, and intervention to try to allow local residents in on the increasingly expensive American dream of owning a home. Stay tuned.

Our real estate columnist Heather Buchanan lives in Sag Harbor. Email her with comments and tips and see more of her writing at HamptonsHeather.com

First Ira Rennert, the billionaire industrialist, created the Hummer, which is now one of the largest civilian vehicles on the road today. Then he built Fairfield off of Daniel's Lane is Sagaponack, which, as we all know, is one of the biggest houses in the country, complete with 29 bedrooms, two bowling alleys, a 120-seat theater, parking for 200 and 39 bathrooms.

Now he has turned his attention to loftier matters—namely, the compilation of all of the 613 commandments in the Torah. These will not be compiled in one book, however—not Ira's style. Instead, they will be compiled in a 20 volume set. Each volume will cost about $30, so for about $1 per commandment and a bonus 13 commandments for free, redemption is yours.

Billionaire Turns Attention to Commandments [NY Sun]

We're sure that last week's article in the Times has gotten you nervous about your summer rental. Considerate folks that we are, we've come across one option for your consideration. As the blog, Down by the Hipster, writes: 

"For a small fee, you the get the house, the sun, the pool, the people, and the fun. Standard stuff. The real kicker? The party tent. That's right, this share includes a permanent party tent. It's the summer share that you never have to leave, skipping the club life for the house club life."

We kind of have mixed emotions about that last line. We can't imagine the neighbors loving this house, but as long as the renters are staying there and not actually going out... it means we won't have to see them. Stay tuned for other very appealing Summer Rentals in the weeks ahead.

Down by the Hipster recommends you click thru to seem some pictures from last year—and we have to say, you should definitely click thru to see what you're missing out on.

Hamptons Hamptons Hamptons [Down by the Hipster]