As summer draws to a close, Suffolk County deed transfers now available reveal just how much Baron’s Cove sold for — $66.5 million.
Blue Flag Capital, a real estate investment firm that has been scooping up hotels across the East End over the last few years, purchased the well-known hotel and restaurant in the heart of Sag Harbor’s waterfront on June 25.
However, the amount was unknown with Blue Flag and the seller, Cape Resorts, remaining mum.
“We are honored to be the next stewards of Barons Cove, which is truly an iconic fixture of Sag Harbor,” Jason Brown, the CEO of Blue Flag Captial, told Behind The Hedges in early July when we reported the sale. “We’re excited to leverage our deep hospitality experience to invest in the hotel’s future with the goal of offering exceptional hospitality and positively impacting the community and its residents for decades to come.”
The 2.64-acre property features a estaurant, lounge and 67 guest suites, some facing the harbor.
Last summer, Baron’s Cove celebrated the 65th anniversary since Tom and Arthur Baron opened the doors on Memorial Day weekend in 1958. It became a favorite hangout for John Steinbeck. The original building down the block has been replaced by condos, but in 2015, Cape Resorts unveiled a new, high-end set-up.
The most recent sellers, Cape Resorts purchased the property, for undisclosed terms, in 2013 and undertook a major renovation. Lsted in the deed transfers as Barons Cove Owner LLC, the company has continued to manage Baron’s Cove. Cape Resorts operates several hotels including the iconic Congress Hall and The Virginia in Cape May, New Jersey.
According to deed transfers for the real estate, Blue Flag purchased 31 West Water Street under a limited liability company called ABF Barons Cove.
It’s unclear if the $66.5 million is the total amount of the sale, including the business, or just the real estate.
In recent years, Blue Flag has acquired Sunset Montauk, Haven Montauk and the Greenporter on the North Fork. In addition, the Boston-based firm has purchased properties all over the United States, such as Jackson Hole, Wyoming. Blue Flag is behind the award-winning Faraway Hotels on Martha’s Vineyard and in Nantucket, such as the Beachside that opens this month.
Around the same time, Blue Flag spent $13.5 million to purchase the eight propertiesthat makeup Sunset Montauk in late 2022. Formerly called Sunset Beach Montauk, the transaction included two vacant properties and four waterfront parcels in Montauk Harbor, totaling 3.46 acres, all within walking distance of Gosman’s Dock.
In 2023, Blue Flag also bought Haven Montauk for $14,940,000. The 27-room property has a pool and picnic area just across the street.
Email tvecsey@danspapers.com with further comments, questions, or tips. Follow Behind The Hedges on X and Instagram.
