The noted Hamptons luxury real estate developer Joe Farrell has some new digs of his own. He confirmed on Thursday that he bought an oceanfront house at Ditch Plains Beach in Montauk in a deal that Behind The Hedges reported last month sets a new record for the neighborhood that boasts the best surfing in the Hamptons.
Multiple sources close to the deal — which was made after a chance meeting surfside in front of the house just after Labor Day — will record at $17 million. Hedgerow Exclusive Properties and Douglas Elliman’s Erica Grossman and Kyle Rosko had the co-exclusive for the 5,100-square-foot home, which had a last ask of $19,950,000. The eight-bedroom, eight-bath house sits on a one-acre property, one house removed from the beach parking lot, and boasts 90 feet of direct oceanfront.
“I see unbelievable value in what I just bought,” Farrell says of his new home at 42 Deforest Road, which sits on a one-acre parcel and boasts 90 feet of direct oceanfront. “It’s so cheap,” he says when considering how expensive real estate is along the ocean further west between the Shinnecock Canal and Amagansett.
And he would know. The founder of Farrell Building Company, one of the most influential homebuilders on the East End, built himself a flat-roof modern house along the Atlantic in 2023, listing it for a time for $125 million. He says now he doesn’t intend to sell that one — “I’m going out with my toes up,” he says with a laugh. It’s rented a fair amount and so he will spend that time out in Montauk.
“My kids love Ditch. They love to surf,” he says of what will be a second home of sorts.
A Big Sale Is About to Close
However, Farrell is parting ways with one Bridgehampton oceanfront residence, a Farrell Custom Home project at 165 Surfside Drive. Farrell exclusively confirmed Thursday evening that the deal is due to close on Friday, November 14, for a whopping $58 million. It will be at the top of the 2025 priciest sales list in the Hamptons.
That transaction, he says, will be another record breaker, in more ways than one. The 8,600-square-foot house, with 125 feet of direct ocean frontage, sits on just 1.5-acre. By comparison, a 2.2-acre estate on nearby Mid Ocean Drive, sold a few weeks ago for $57 million.
New York City agent Richard Steinberg of Compass brought the buyer to Farrell’s open listing, which was last asking just under $70 million.
A Deal Made in the Sand
Back in Montauk, Farrell is focused on the deal he feels he obtained, in an area where there has been a surge in activity, but the purchase at “On the Break” came about unexpectedly.
“I’ve had a house in Ditch Plains for probably 12 years,” says Farrell. “I bought a house one day when we were at the beach. My wife went for a walk and I went and bought a house,” he remembers with a laugh.
More recently, he ended up buying a couple of smaller beach cottages on Deforest Road, and just finished building a new house on one site, just down the block from his newly acquired home and on the opposite side of the street. He says he thought that might be his “for life house.”
On September 3, he went to Ditch Plains to watch the sun rise with family members and they were sitting in front of the “On the Break” homes, when he saw Rosko, a good friend who often surfs at Ditch Plains. The conversation turned to the house quite literally right behind them. “I said, ‘Would you show me that house?’ He had the keys. So me, Kyle and my son Joey walked over the dune and I just had a feeling I was going to buy it.”
“I got on the deck, and I could see all the surfers. I look up the coast, I can see the cliffs,” Farrell says. “Who has that?”
Two weeks later, he sold two of his Deforest Road properties, just across the street, for a total of $11.5 million, making what he boasts was ” a ridiculous trade.”
He sold his new, three-level beach house, which sits on a sixteenth of an acre at 23 Deforest Road, reportedly for $8.5 million. The open-concept home features custom millwork, three bedrooms, three-and-a-half baths, and ocean-facing balconies. Meanwhile, the adjacent, similarly-sized property at 19 Deforest Road with an existing 900-square-foot cottage went for $2.675 million, he says. Farrell described the two-bed, one-bath home as “a knock down,” and a new build would offer the possibility for ocean views.
When Hedges reported 42 Deforest Road had gone into contract, Rosko said Ditch Plains was particularly in demand, pointing to several other deals in the area.
Another agent involved in the deal, Greg Gould of The Legacy Group at Hedgerow, agrees. “The Montauk market has a significant pulse right now. Buyers are serious and viewing Montauk as a long-term investment opportunity. Constant demand for high-end coastal properties continues to define this market,” Gould says. “Buyers are focused on long-term value and the luxury lifestyle of oceanfront living.”
Putting the Farrell Touch on the Home
Farrell, who has perhaps been involved in more home sales than anyone in the course of his long career in the Hampotns, isn’t shy about saying that while he bought for the value of being on the water: “I didn’t love the house.”
Speaking just two days after the closing, he says, “I already ripped the kitchen out,” adding he’s redoing shower tiles and sliding doors. The large fire pit in the pool, “I’m demoing it.”
He rattled off some key items missing, such as a central vacuum and high hats in the bedroom.
“I looked past that. For me, it’s about the house in total and the land,” he says.
“I’ll spend $400,000 inside or something like that” to create the ultimate dream home for which he has become known.
Looking at real estate from the Shinnecock Canal to Amagansett, “If you want to walk to the [ocean] beach, you’re looking at $15 to $20 million bucks… a lot on the ocean is over $30 million. I see unbelievable value in what I just bought – it’s so cheap.”
“Once I fix it up a little, it will be worth $25 million — at least,” Farrell says, though he claims, “I have no intention of ever selling.”
The House Next Door
Three parcels make up the “On the Break” development. The vacant property to the west, at 44 Deforest Road, sold in December 2024 for $9 million, marking the highest-ever recorded price for a one-acre oceanfront parcel in Montauk. Grossman at Douglas Elliman and Hedgerow Exclusive Properties also represented that listing.
“What makes this sale so exciting is that 42 Deforest Road isn’t just a premier location, it’s an exceptionally designed home,” says Grossman. “Award-winning architect Boris Baranovich and luxury Hamptons builder Hobbs Inc. poured extraordinary design and craftsmanship into these “On the Break” residences. You feel it in every detail, the layout, the finishes, the natural light, and the seamless way the decks open to the ocean. Everything was designed for true beach living: generous gathering spaces, beautifully appointed bedrooms, fireplaces, a stunning pool and spa, and even a three-car garage. It’s luxury, but it’s also effortless.”
The 4,800-square-foot house at 40 Deforest Road remains available, the final opportunity in this exclusive enclave.
Located to the east of Farrell’s house, the six-bedroom, six-bath house is known as Casa Las Olas. The house features glass doors that open to the expansive deck that runs the entire width of the home with a heated gunite pool, sun shelf and spa. The second-level primary overlooks the ocean with a private terrace.
“Opportunities like this are incredibly scarce, and there’s just one last chance to be part of the “On the Break” development. 40 Deforest Road is the final home available, asking $17,495,000, and it’s truly the last of its kind,” Rosko says.
Email tvecsey@danspapers.com with comments, questions, or tips. Follow Behind The Hedges on X and Instagram.
