Montauk Oceanfront Property Sells for Record-Breaking $9 Million
Highest-Priced One-Acre Oceanfront Lot Ever Sold in Montauk
A vacant oceanfront property, one of four that overlook the surfer’s haven of Ditch Plains Beach and once the site of the East Deck Motel, traded last week. Yielding $9 million, it’s the highest-priced one-acre oceanfront lot ever sold in Montauk.
The Sale
Erica Grossman at Douglas Elliman and Hedgerow Exclusive Properties represented the listing, part of the On the Break development at one of the East Coast’s most iconic surfing spots. Hedgerow, a Bridgehampton-based brokerage, brought the undisclosed buyer to the deal.
Market Insights
"This sale is testament to the fact the high-end market is heating up," Grossman tells Behind The Hedges. "In Montauk, this land sale, offering the chance to create a rare masterpiece on the ocean, shows that buyers with vision and those who are paying attention to opportunity in the market are getting serious."
Comparable Sales
In 2021, the vacant 1.2-acre parcel at 46 Deforest Road, another of these On the Break lots, sold for $8.1 million. Another comparable sale is that of 260 Old Montauk Highway, a 1.5-acre oceanfront parcel, which sold for $9.5 million in 2019, the equivalent to $6 million per acre.
The Development
Heath Freeman’s On the Break Development is the seller and also owns the adjacent lots at 42 and 40 Deforest Road. Freeman is the president and founding partner of New York-based Alden Global Capital, is also the force behind EHP Hospitality Group, which owns EHP Resort & Marina in East Hampton and Shagwong Boat Club, among other entities.
The Properties
Under the limited liability company, 40 Deforest Road LLC, the development firm purchased 44 Deforest Road in 2021 for $6.45 million. Though there were plans to develop a 5,400-square-foot, eight-bedroom home with panoramic ocean views, 92 feet of ocean frontage and a waterfront pool and spa, it remained vacant. The last ask for the property, known as Casa Encantada | On The Break, was $12.95 million, before it traded at $9 million on Thursday, Dec. 19.
Awards and Features
Award-winning architect Boris Baranovich designed the residences, two of them built by luxury Hamptons builder Hobbs Inc., which Grossman says "showcase exceptional build quality and thoughtful design. From spacious interiors to high-end finishes, each home includes features such as three-car garages, multiple bedrooms and bathrooms, expansive decks, fireplaces, hot tubs, and pools."
Rental Opportunity
While 2024 was a slow year for oceanfront sales throughout the South Fork, Grossman feels, "this oceanfront sale, and recent others, collectively signal an improvement in the high-end oceanfront market. This is an exciting sale for Montauk, and we’ve also seen recent listings on Meadow Lane in Southampton and on Surfside Drive in Bridgehampton go into contract, along with a flurry of activity on other oceanfront homes throughout the East End. We’re entering 2025 with great momentum in the oceanfront market."
Compound Rental Opportunity
On the heels of this sale, they are also announcing a unique, record-breaking rental offering in Montauk for summer 2025: 40 and 42 Deforest are available together as a compound for $1.5 million for Memorial Day through Labor Day.
Conclusion
The sale of this oceanfront property marks a significant milestone in the Montauk real estate market, signaling a shift towards a more active high-end market. With the introduction of this record-breaking rental opportunity, it’s clear that Montauk is poised for a strong 2025 season.
FAQs
Q: What is the highest-priced one-acre oceanfront lot ever sold in Montauk?
A: The vacant oceanfront property at 44 Deforest Road, which traded for $9 million.
Q: Who represented the listing for the sale of 44 Deforest Road?
A: Erica Grossman at Douglas Elliman and Hedgerow Exclusive Properties.
Q: What is the unique rental opportunity being offered in Montauk for summer 2025?
A: 40 and 42 Deforest are available together as a compound for $1.5 million for Memorial Day through Labor Day.
