Seeking $5 million to buy, renovate, and sell houses in the Hamptons, Long Island, NY

Industry

Construction

Company Type

Real Estate

Location

US

Size

$5,000,000

Investment Type

Equity

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Helping Great Companies Grow

Overview

  • Seeking $5+/- million to buy, renovate (often tear-downs), and sell houses in the Hamptons, Long Island, NY
  • Expected investment per home: $3 million ($1.5 million to purchase; $1.5 million to renovate), with certain larger homes done opportunistically
  • Plan to purchase 7-10 homes per year for three years (if the opportunity persists)
  • Management team, led by Jeffrey Collé, a premiere Hamptons luxury home builder
  • Internationally known and highly respected by numerous celebrity and executive clients (Jay-Z, Alec Baldwin, Donna Karan, Billy Joel, etc.)
  • Third-generation carpenter – building homes in the Hamptons and Long Island since 1978
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Helping Great Companies Grow

Opportunity

  • The Hamptons is a challenging market for most developers – difficult to source houses, obtain required permits, access materials and subcontractors, and complete renovations in an efficient and timely manner
  • High quality labor is hard to find due to the lack of affordable housing in the community
  • Most builders in the area are small, lack experience and capital, and are unable to provide quality design and construction
  • Access and procurement of high quality building materials for this market segment are difficult to find
  • The new tax regulations may significantly impact valuations in this market
  • Most players in the Hamptons are unable to navigate local laws and building regulations (which often present a moving target) to determine the potential renovation opportunity for an outdated house
  • New inventory continues to decline
  • There is little or no supply to support the high buyer demand for houses in the $3-8 million price range
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Helping Great Companies Grow

Solution/Strategy

  • Acquire homes in the Hamptons at favorable prices for cash, rapidly and professionally renovate or tear-down and rebuild, and sell – may also opportunistically build new homes on raw land
  • Expected fix/flip hold period: 12 to 14 months
  • Prospective sellers of off-market value properties have already been identified
  • Preemptive action approach with all due diligence completed, contracts ready and all-cash non-contingent offers.
  • Through value engineering and relationships, management expects to procure high quality materials at a significant discount
  • Experts in determining property density – access to land use experts who can prepare property specific buildability analysis within days (others often require 2-3 months)
  • Long-standing relationships within each of the municipalities, town supervisors, building departments, preservation groups, and key political constituents – should result in sm ooth permit processes
  • Having built over 300 homes in the Hamptons, management’s access to labor is unparalleled – significant loyalty among vendors and trades
  • Impeccable reputation for high quality homes completed on time – trades get paid on time (highly unique in this fragmented business)
  • Value engineering and the highest level of materials should provide homes at incomparable quality level at this price point
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Helping Great Companies Grow

Management

Jeffrey Collé

Developer

  • Premiere design builder of the Hamptons for over 40 years
  • Projects have earned international acclaim for their detailed innovations and designs, frequently gracing the pages of publications such as Architectural Digest, The New York Times, Forbes, House Beautiful and New York magazine
  • Leads a crew of highly skilled master carpenters, millworkers and cabinetmakers who fabricate on-site to his precise specifications
  • Clients include local and international moguls and luminaries such as Jay-Z, Alec Baldwin, Donna Karan and Billy Joel
  • Notable projects to date include a total restoration of a 28-room, 16,000-square-foot historic mansion in East Hampton originally owned by the Gardner Family; renovation of a 12,000-square-foot triplex penthouse at The Pierre Hotel in New York; and the record-breaking moving and relocation of a 20,000-square-foot mansion in Water Mill; a recording studio for Billy Joel

Richard Brierley

Project Supervisor

  • Project supervisor and master carpenter with 35 years of experience in custom residential construction on the East End of Long Island
  • Experienced in collaborating with owners, architects, sub-contractors and laborers on large multi-million dollar residential projects
  • Skilled in leading all functions of construction project supervision including planning, processing, specs-approvals, managing staff, supervising sub-contractors, budgeting, scheduling, progress reporting and timely completion of projects
  • Developed a highly skilled network of subcontractors and suppliers from which to draw the best resources for each project
  • Worked with renowned architects Gwathmey Siegel and Associates, Richard Meier and Zwirko and Ortman

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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