The Sweet Smell of Sagaponack

The Sweet Smell of Sagaponack

 

Joining other TV start who count a Hamptons home as a sign of success, former Saturday Night Live cast member and Late Night host Jimmy Fallon has bought an 1850s farmhouse on Parsonage Lane in Sagaponack. The six-bedroom, five-and-a-half-bath compound on 2.2 acres with pool, two cottages, two barns and an apple orchard was listed with Prudential Douglas Elliman. By SSOH (Sagaponack South of the Highway) standards, the purchase is a mere trifle. Although if Fallen has equestrian leanings, one of the barns includes horse stalls, and the property has easy access to the Bay to Ocean trail system. With properties on Parsonage Lane listed up to $26 million, the reported $5.7 million purchase price is a real deal.

 

Fallen is in good on-air and on-plain-air company. He’s not far from the oceanfront property in Bridgehampton bought by Donny Deutsch for a reported $20.5 million this spring, and Kelly Ripa and Joy Behar also live in the ‘hood. (Just Imagine the coffee klatch at the Sagg General Store.) Aside from the field views, ocean proximity and famous Pike’s Farm Stand tomatoes, one of the hidden benefits of buying in Sagaponack is the low annual real estate taxes, which can be one-third of a similarly priced property in East Hampton Village—approximately $10,000 versus $30,000 at this price point. That will buy you a pony or two.

 

The Global Jet Set

 

If you want proof of the strength of the high-end market, simply visit the East Hampton Airport on a Sunday night. John McHugh of Sotheby’s noted four Gulfstreams lined up on the tarmac, a number of seaplanes and about 30 people waiting for the helicopter—and that was in June. Yet even jet-setters with deep pockets want value. McHugh is seeing a lot of activity on his SSOH property on Daniels Lane, listed at $7.75 million (like Fallon’s new digs, it’s priced lower than many of its neighbors). With a rare deeded ocean access, the 2.1-acre property with a 2,200-square-foot home, pool and room for tennis also has generous space to add or rebuild, according to McHugh.

 

While the beginning of summer is usually slow, he has seen a lot of activity, “People are looking, but not just to look,” he says. “It’s not even on rainy days—they’re looking when they could easily be at the beach.” McHugh points out that high-end buyers not just those with direct ties to Wall Street. A new wave of buyers from Russia, China and South America (especially with horse-world connections) is emerging, according to McHugh. “They want to live a little bit of the life they didn’t have—the American dream and the house by the beach.” They also benefit from currencies trading strongly against the dollar.

 

McHugh notes that the high-end broker really has to do his/her homework in this competitive market, not only to price a property properly but also to represent its potential accurately, from waterfront building issues to tennis-court possibilities, so that surprises don’t suddenly appear at closing. “I’m a straight shooter,” he says. “It doesn’t pay to sugarcoat and tell buyers just what they want to hear. You have to know your product in and out.” He also points out the importance of ancillary closing costs. “Disclosure is huge under the new magnifying glass. It’s almost like looking at a cell phone bill at the end of the month, with all of the fees. Magnify that by a $20mililon transaction.”

 

Market Heats Up

 

Corcoran senior vice president Gary DePersia reports that some buyers are taking a stealthier approach, spending their summer days getting educated, whether they’re renting or just visiting. “After a busy spring, buyers are doing due diligence and laying the foundation so they can jump on the right house after the summer,” he says. Most recent transactions were concluded by June, so buyers could be in their houses for the 2011 summer season, and currently there is a traditional lull that lasts until Labor Day. DePersia says properties can suddenly “go into heat” after sitting on the market, then end up in bidding wars.

 

Although a standard clause in a rental agreement allows a property to be shown for sale during a tenant’s residence, most high-end rentals have a “no show” clause, which means the house cannot be shown during the rental term. For some buyers, the rental income potential on a property is exactly what makes it attractive. The famed “Sandcastle,” a 31,000-square-foot Bridgehampton mansion, has a reported repeat renter—a Florida divorcee who upped her rental from $500,000 for two weeks last summer to a rumored $1 million for a month this season. DePersia has the listing on the estate, which has a $49.5 million price tag, but he remains mum when it comes to confirming the rental cost.

 

Another rented property that will re-emerge for sale in September is a Water Mill listing for a mere $9.95 million. The 11,000-square-foot manor house on 2.5 south-of-the-highway acres has all the requisite high-end bells and whistles: pool, spa, sunken tennis and basketball courts, wine cellar, billiards room and complete spa facilities with sauna, steam and massage rooms. DePersia says, “It’s the most house on the most property SOH under $10 million, with an outdoor area that’s second to none.” For the buyer who requires privacy, there’s also a 16-camera security system in place.

 

Water Mill Wonder | SCH manor house is listed for $9.95 million with Corcoran's Gary DePersia, 631-899-0125.