Page 62 July 30, 2021 DAN’S PAPERS danspapers.com
$50 Million Fable!
Vacant Oceanfront Land Traded at One-Third the Price
FOUR LOTS THAT MAKE UP A 9.4-ACRE OCEANFRONT PROPERTY SOLD FOR A FRACTION OF THE $50 MILLION NEST SEEKERS’ DYLAN ECKARDT, INSET, REPORTED EARLIER THIS
MONTH. PHOTO: COURTESY DYLAN ECKARDT/NEST SEEKERS
BY TAYLOR K. VECSEY
Four vacant oceanfront parcels in
Amagansett, totaling 9.4 acres,
wound up selling for $16.5 million earlier
this month—a far cry from what
we were initially told.
Nest Seekers International’s Dylan
Eckardt, the self-proclaimed Prince of
Montauk, had told Behind The Hedges
recently that he secured the asking
price after a so-called bidding war.
“The price reported was wildly inaccurate,”
says Adam Miller, an attorney and
founder of the Bridgehampton-based
Adam Miller Group, which handled the
deal for the purchaser. He was only willing
to set the record straight, but would
not confirm the name of the purchaser.
The deal closed as four separate lots
for a combined total of $16.5 million
on July 1, not the $50 million Eckardt
professed.
What’s $33.5 million?
The properties at 2012, 2016, 2020
and 2024 Montauk Highway each
BEHIND THE HEDGES REAL ESTATE
transacted separately at $4.125 million.
The same buyer, Steven Berkson,
purchased them under separate limited
liability corporations.
When reached on Thursday about the
discrepancy, Eckardt dug his heels in,
but did not provide a valid explanation.
The untouched properties, which
had been owned by a local family,
include 400 feet of ocean frontage.
There are two lots at 1.9 acres and two
that are 2.8 acres.
Eckardt claims that a day after the
closing, he had someone offer $2 million
more over the ask, and that he
presented the deal to Berkson, who
turned it down. That was refuted by
someone close to the deal, who also
said there was never a bidding war.
Since the properties traded for one
third of what the broker claimed, it
seems like it was more of a pillow fight.
So how does a property listed at $50
million trade at a 66% discount?
“This deal is a good example of the
negative impact of overpricing,” said
Adrianna Nava, founder of Hamptons
Market Data and real estate agent with
Compass. At the time the property was
listed, Hamptons Market Data valued
the offering at around $20 million, assuming
the lots upon being subdivided
could yield the size home with amenities
that today’s buyers would expect
at those numbers, she explained.
Hampton Market Data based the
valuation on recent comparable developed
trades, like 7 Beach Plum Court,
compared against the possible potential
of the offering, scarcity of inventory,
buyer demand and increase in
market pricing since September.
Clearly, the buyer here got a good
deal.
“Based on the exorbitantly high listing
price, the seller was the only one
who had an understanding of his/
her goals and what ultimately occurred
was the exclusion of potential
additional buyers working with other
brokers, who may have bid higher had
they known the seller was willing to be
realistic,” Nava said.
Listing the price high is one thing,
but mischaracterizing the sale price is
another.
“The listing has been updated with
a sold price of $50 million, providing
grossly inaccurate data to agents who
are working together 24/7 in the best
interest of their buyers and sellers,
regardless of brokerage, branding or
level of business,” Nava says.
“Lack of transparency on pricing and
bad data are precisely what Hamptons
Market Data is effectively working to
combat,” she continued. “It’s bad for
business and bad for sellers and buyers
alike. This seller may have been offered
more than the agreed price had
it been communicated, through the
listing offering, that they did actually
have an understanding of the current
market value. However, it is also a
good example that a deal can be obtained
in a Hamptons seller’s market
when a buyer is willing to submit their
best offer despite the listing price.”
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