A massive mixed-use commercial building in the heart of Southampton Village sold recently, trading for $8.4 million, according to Cushman & Wakefield and Hamptons Compass Commercial, which announced the deal.
The 19,865-square-foot building at the corner of Hill Street and Windmill Lane is a prime piece of commercial real estate, just doors away from the Southampton Cinema, which is in the midst of a transformation under the ownership of billionaire developer Aby Rosen.
Joe Musso and Daniel Abbondandolo of Cushman & Wakefield’s Long Island Investment Sales Team represented the seller, Philip Futterman of the Futterman Organization, an active local investor out of New York City who has owned the property for more than 20 years.
Hal Zwick and Jeffrey Sztorc of the Hamptons Compass Commercial Real Estate Team brought the buyers and is handling leasing opportunities. They declined to identify the buyer.
Though the property, which includes the addresses of 1-15 Hill Street and 1-17 Windmill Lane, had been on investors’ radars and with other brokers for approximately two years, Cushman & Wakefield launched it as their listing beginning of the second quarter in 2023 with an ask of $10.95 million. The offering showed a projected operating income of $900,146.
The deal closed on Jan. 31. The price per square foot for the transaction comes out to $423.
“With the recent elections, folks find the Village of Southampton to be a business-friendly, pro-business type of environment that it has not always been,” says Abbondandolo, the executive director of Cushman & Wakefield’s Long Island team, which helped broker the most expensive commercial sale in the Hamptons last year.
Though Southampton has struggled while areas like Westhampton Beach have seen an explosion in retail and other businesses, in part due to the addition of a sewer system, Abbondandolo says that Southampton Village remains “billionaire central. It’s still the place to be. With what’s going on, thanks to the mayor, thanks to the theater and also the restaurant across the street. . . there is a lot of really good momentum.”
Musso says the the work on the theater, along with “the revitalization of that corner in general” is exciting for the village. The agents pointed to El Verano, the high-end Mexican restaurant, that opened up across the street at 10 Windmill Lane last summer. Shippy’s restaurant also recently reopened after extensive renovations.
The building offers a lot of potential.
Zwick and Stzorc, who were behind many of the biggest commercial trades in the Hamptons in 2023, agree. Looking forward to the future, he says, “The renovation and reinvention of this, the largest building within the Southampton Village business district will help transform this very important intersection.”
The building offers separate commercial spaces and is currently home to longtime tenant Ye Olde Bake Shoppe, New York Pilates and boutiques Ari’s Closet and Pachute. The two-story asset is comprised of ground-floor retail and office units on the second floor. It is zoned Village-Business.
When the property changed hands, it was about 40% occupied, according to the team at Cushman & Wakefield. Total taxes for 2023 were $26,366.
The light-filled spaces currently available include a corner retail/office space. The offerings range in size from 1,700 square feet to around 8,300 square feet.
The building is located on a 0.43-acre lot at the signalized intersection of Hill Street, Windmill Lane and Jobs Lane with views of Agawam Park. There is not only a steady flow of vehicle traffic, but also foot traffic and benefits from public parking.
“This is a tremendous commercial asset with a variety of tenants in the heart of Southampton Village,” says Stzorc. “With upcoming renovations and a new leasing program, Windmill Lane and Hill Street by the movie theater will be seeing a newly invigorated chapter.”