The Sands Motel in downtown Montauk, which hit the market last summer for $28 million, has a new owner ahead of summer 2024.
A prominent hospitality group, made the purchase, according to Hal Zwick and Jeff Sztorc at Compass Commercial in the Hamptons, who exclusively represented this prime piece of commercial real estate, on Friday.
Behind The Hedges is told the closing took place on March 21. The final purchase price was not revealed.
With more than 250 feet of frontage on Montauk Highway, the property offers 360-degree water views of the Atlantic Ocean and Fort Pond and is located across the street from the ocean beach. There are 43 keys across four buildings, all close to Montauk’s downtown. There is also a pool facing Fort Pond.
Enduring Hospitality, described as a prominent hospitality group, was identified as the buyers.
“We are excited to join the Montauk community with our acquisition of The Sands,” the hospitality group offered in a statement. “Our goal is to refurbish the existing hotel, centering on health and wellness, while safeguarding the authenticity of Montauk and its connection to surf culture.”
Currently closed, the accommodations include a 19,000-square-foot hotel complex with three guest room buildings (both one and two stories) with a total of 43 keys. There is also one small building being used as a rental.
The motel rooms offer a mix of one- and two-bedroom units, each with one bathroom. Fourteen of those units also feature small to medium-sized kitchens. They range from 150 to 360 square feet in size.
The Sands Motel complex, long under family ownership, is comprised of 71 S. Emerson Avenue, 79 S. Emerson Avenue, 3 S. Emery Street and 666 Montauk Highway, totaling 1.16 acres.
Richard J. Hausman, who owned and ran the motel that his parents first built in 1951, died in early 2022 at the age of 97, according to an obituary in The East Hampton Star.
Jeff Sztorc played a pivotal role in the transaction, according to the statement.
“We’re excited to be able to see this substantial deal through for a storied and esteemed Montauk family,” he said. “The Sands Motel has a rich history within the downtown fabric and it will be incredible to see a tasteful renovation take place that will brighten our commercial district.”
“We look forward to how the Sands will evolve over the next year to serve the growing summer and shoulder season communities,” Zwick added. “We are sure that the enhancements will be a welcome addition to Montauk and the East End.”
The statement continued that the acquisition “reflects the strength of Montauk’s real estate and hospitality markets but also signals continued investment and growth in the region.”
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