An apartment complex that offers much-sought affordable housing in Hampton Bays sold recently and while oftentimes a trade signals the end of affordable housing, the buyers will continue to rent the apartments out for affordable housing purposes.
“Obviously affordable housing is very tricky out here which is why this was in very high demand,” says Jeffrey Sztorc, a commercial and investment property specialist of Compass, who sold the property with his partner, Hal Zwick.
The rare multi-family complex at 164 West Montauk Highway sold for $4.275 million about a month ago — the same property was recorded in the deeds as selling for $1.9 million in January of 2022.
Fairfield Properties, a Melville-based owner and developer of commercial real estate that manages many complexes throughout Long Island, is the most recent buyer. While the firm owns apartment complexes from Queens to Suffolk County, this is now the complex furthest to the east. Fairfield owns three complexes in Riverhead and two in Westhampton.
This complex is now called Fairfield Estates at Hampton Bays.
Hampton Bays Affordable Housing Near Downtown
Though considered affordable housing units, they are not overseen by the Town of Southampton but are privately owned. The buyers, while not named publicly yet, own a lot of affordable housing on Long Island, we’re told.
The 8,800-square-foot building is in great shape, Sztorc says. There are six one-bedroom units, a pair of two-bedroom units and one three-bedroom unit. There were originally 10 apartments and two were combined, but they could easily be converted back.
The complex, which sits on a 0.9-acre parcel, is a prime location for an apartment building being only a quarter-mile to the center of downtown Hampton Bays.
“There is strong demand for staff housing with larger corporations or year-round/ affordable housing for local families. A truly great investment property with a proven track record of impressive income.”
The team is working on some similar apartment complexes throughout the East End.
However rare these offerings are Sztorc and Zwick are also working on similar apartment complexes elsewhere on the East End. One example is at 58 Howard Street in Sag Harbor Village, a multi-structure, multi-family offering listed at nearly $6.5 million.
There is a traditional main house that has three bedrooms and four bathrooms, all recently renovated this year after selling in 2021 for $4.2 million, as well as an apartment building behind it with five apartments. There are four two-bedroom units and a single one-bedroom unit, that boasts a separate shared space from the main house, as well as a large parking lot (a real bonus in busy Sag Harbor Village).
Since housing is always at a premium in the Hamptons, especially in the sought-after village, there is always a high demand. Currently, there is a waiting list for any of the apartments. “This is further supplemented by high-level income from the main house,” the listing description says.
There are also storage pods and a detached garage, once used as an artist’s studio.
“A unique investment that can work as an income property or an ideal building lot for an estate only a stone’s throw to Sag Harbor Village Main Street and harbor.
“We do have some other confidential multi-family options as well on the sale side,” Sztorc adds.