Seven has always been a lucky number. As luck would have it we have a 7 lot subdivision worth analyzing at the end of Handy Lane, South of the Highway in Amagansett.
The newly minted sub-division is comprised of seven lots between .49+/- to .8+/- acres in size and can accommodate homes between 4,144+/- square feet to 5,939+/- square feet. The basic review is flat topography, good drainage, great southern exposure, and as far as layouts go it’s a smart one that offers privacy. Also, the lots are close to town and beaches.
The good news: Did we mention the lots offer privacy?
The bad news: no direct access to the beach route and owners would have to drive around the block to get out and over to Cross Hwy and Further Lane.
Is that a deal killer at the current price point or an opportunity to get a bargain off the discount rack?
At the current price point(s) we’ve examined, Amagansett building lots average well over $2 million. The South of the Highway mean number is well over $2.65m.
But given the on-again-off-again interest in the “3 Sisters” project on Montauk Highway (the project offers big homes with more land for privacy and a short walk to town), the best and most current guesstimate puts these smaller lots in under a $1.5m valuation.
However the play on these lots is all or nothing. Safety in numbers!
For an interested development group here’s the dirt on the numerology.
If all 7 lots were priced a tad under $1.5m (or anything less) and the developer broke from the traditional mold, and tried a Bates & Masi, or another uber contemporary design (example below), Say 3,200 to 3,800 sq. ft with a finished basement, plenty of outdoor living, and wow-type entertainment space, the numbers might surprise you.
(Cover Hollow Rd East Hampton, built by Edgehill Homes)
Say you took a $1.5m land cost; $2m for construction cost; and rolled the dice on an end value of $4,250m … the math works.. but tight.
However, your luck improves with the numbers. Once the 1st and 2nd homes are up, landscaped and staged, the neighborhood image and character is re-defined.
If designed with the right user product in mind you could turn an outlier from a risk-taking move to an enclave of vision.
More importantly you’ve just added intrinsic value to the 5 remaining lots.
The developers could continue to build more contemporary homes or maybe just hold their cards and bank the land for future sale or development.
Our thoughts, ask the seller to hold enough paper for a period of 3 years, ask for a good rate, and save your cash for the 1st and or 2nd uber contemporary house.