Two major commercial properties in Water Mill traded recently for a combined $39 million — the largest transaction for a retail property in Hamptons history.
Water Mill Square at 670 Montauk Highway — home to a slew of small eateries and businesses as well as the United States Post Office in Water Mill — and The Mill at 760 Montauk Highway — a large commercial complex up the block — were sold as a package deal. The buyer is Runyon Group, a Los Angeles-based, full-service real estate company.
HCRE, the Hamptons Commercial Real Estate Team at Compass, led by Hal Zwick and Jeffrey Sztorc, announced the deal on Wednesday, explaining that the founders of Vault Development Partners, Robert Zecher, owner of The Mill, and Ben Rinzler, owner of Water Mill Square and a partner in The Mill, teamed up to sell the two complexes, which represent 84% of the Gross Leasing area in the hamlet.
“This transaction is a clear signal of the strength of the Hamptons retail market,” said Zwick. “Assets with this level of visibility, tenancy, and long-term upside are incredibly rare, and achieving a record-setting sale speaks to both the quality of the properties and the continued demand from investors,” said Zwick, adding, “This is one of the best assemblages I have ever seen created and sold.”
And he should know. Zwick and Sztorc bested their previous record, set just last year with the sale of the commercial properties along the Sag Harbor waterfront that traded for $30 million. In 2022, the commercial real estate duo put together the off-market deal for a 20,000-square-foot, multi-use building at 66 Newtown Lane in East Hampton Village for $28 million.
Zechner, the CEO of Vault Development Partners, a boutique real estate investment company with other investments in East Hampton, led the $13.1 million acquisition of The Mill in 2023.
“Vault is leaving Watermill, and Runyon will be announcing their overall strategy for the Hamlet in the near future,” Zwick explains.
Runyon’s co-founders, Joseph Miller and David Fishbein, have already given a preview of their plans when they appeared before the Southampton Town Planning Board in October. They are planning cosmetic changes, as well as making some of the spaces smaller, a formula that has worked elsewhere for the firm, which “owns and manages properties, develops retail and restaurant concepts and advises some of the most dynamic, independent brands today,” according to its website.
“This portfolio has been a cornerstone of the Water Mill community for years, and it’s been incredibly rewarding to see it evolve into such a vibrant retail destination,” Zecher in the statement. “I’m proud of what we built here and confident these properties are well-positioned for continued success under new ownership.”
Rinzler, a co-founder of Vault, was described as the longtime owner of the Water Mill Square. Property records indicate he has owned the property at least since 2008.
“When my father Milton and I bought Water Mill Square, we had a vision to shepherd a renaissance in Water Mill; making it a destination for experience and culture,” he said. “I look forward to seeing the new owners’ continuation of this shared vision.”
The highly visible properties, along the north side of the highway, are separated by several other commercial parcels and Station Road.
The Water Mill Square offers 20,500 square feet of retail and office space on 2.26 acres. Currently, there is a mix of food and lifestyle tenants, such as Aplina Bakery, Hampton Kitchen and No. 1 Chinese.
The Mill, with access off Station Road, features 29,314 square feet across six buildings in a village square setting. The 3.66-acre lot offers new food concepts, experiential retail, and curated outdoor elements. There is also a Tesla Supercharger station in the large parking lot.
Email tvecsey@danspapers.com with comments, questions, or tips. Follow Behind The Hedges on Facebook, X and Instagram.
