A Sag Harbor property that had been the proposed site of the new Bay Street Theater and then put back up for sale when plans fell through in 2023 has been relaunched along with the addition of a neighboring commercial site.
Hal Zwick and Jeffery Sztorc of Hamptons Commercial Real Estate at Compass exclusively represent the contiguous properties, which went on the market together for the first time earlier this month.
“This is the premier retail development project on the East End at this time,” Zwick tells Behind The Hedges. “Not only is it a rare waterfront development — it is already connected to the sewer system therefore allowing a combination of restaurant, take-out food, and traditional retail outlets — all with the approval of the Sag Harbor municipality.”
The price is only available upon request, but the price is likely over $30 million.
Zwick says that they are not publishing the price to offset any gossip. “We release it after screening applicants,” he says.
Formerly Proposed New Home for Bay Street
In January 2023, Friends of Bay Street listed the waterfront property at 22 Long Island Avenue for $25 million, two years after it was first purchased. The group had intended to build a new home for Bay Street Theater.
“We have thoroughly examined the site and have determined this property is no longer viable to build a theater as originally envisioned,” says Adam Potter, the chairman of Friends of Bay Street, at the time. “Therefore, we have decided to list and sell the property and have retained the Compass’ Hamptons Commercial Real Estate Team to spearhead the process.”
Multiple theaters had been envisioned for the property, including a main stage, a center for new work development, shop and scenery storage, outdoor performance and public spaces.
Bay Street has long been located in leased space on the corner of Bay Street and Route 114 at the foot of the Long Wharf. Now in its 33rd year, the theater serves thousands of students each year and partners. Bay Street Theater says in 2023 that its lease was renewed at its current home on Bay Street.
The 15,000-square-foot, mixed-use building sits on a 0.67-acre parcel that overlooks Sag Harbor Cove and John Steinbeck Waterfront Park.
There are 12 units in the building, ranging from a 290-square-foot architectural office to a 3,075-square-foot retail grocery store (formerly 7-Eleven, which left after the property changed hands). Part of the building that fronts on West Water Street is two stories.
The property is just 400 feet from Main Street with a parking lot dividing it from the adjacent property.
For Apache
That property at 2 Main Street is coming on the market for the first time since 2021 when it last traded.
“They are adjacent to each other and add more depth to the overall package,” Zwick says. “Developers look for scale as it makes the project more attractive to them from a renovation and leasing perspective.
An entity tied to the non-profit Friends of Bay Street also purchased 2 Main Street, known to locals at Fort Apache, for $18 million in 2021.
“It was decided a while back that Bay Street Theater would not be part of the complex and the owners took a while to think about the next steps — either develop it themselves or sell the property,” Zwick told Behind The Hedges.
The building, which sits on 0.27-acre is “one of the most visible buildings on Main Street,” currently home to K Pasa (formerly La Superica), Espresso’s, Yummylicious and the UPS Store. The 4,600-square-foot building can hold four tenants with spaces ranging from 800 to 2,000 square feet.
“The interior of the building has gone through a substantial renovation, namely the K Pasa restaurant has done an incredible build-out in recent years,” Sztorc says. “The exterior of the building can be improved to truly mark the entry into downtown.”
Development
The horseshoe-shaped building at 2 Main Street fronts on Main Street and Long Island Avenue, as well as it has an easement along the beginning of the John Steinbeck Park with the foot of the bridge to North Haven just beyond.
The building features a parking lot behind it, which backs up to the parking lot for the property at 22 Long Island Avenue, a 0.67-acre property that offers 300 feet of frontage on West Water Street and panoramic water views.
It is also located adjacent a high-end residential waterfront development, designed by the award-winning Andre Kikoski Architect.
The mixed-use retail building at 22 Long Island Avenue also includes 26 parking spots.
How the properties could be redeveloped remains a question.
“That would be entirely the decision of Sag Harbor Village Officials — planning, architectural review, the citizen committees, etc.,” Zwick says. “The final product has to make sense for the community and fit it with the character of the village.”
The offering does note that the Long Island Avenue building has the possibility for second-floor expansion to cover the footprint of the building, pending the various municipal boards’ approvals. The addition of another 12,250 square feet would bring in an additional $1,527,500 of net operating income (NOI).
Following a renovation and second-floor addition, the NOI is $3,612,500.
All of the tenants on Long Island Avenue are on a month-to-month basis.
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