Extreme real estate: who’s renting the big stuff and what they’re paying.

Gotham Magazine

Renting in the Hamptons: Extreme Real estate

Last year’s thirty-two million dollar purchase by Jerry Seinfeld of Billy Joel’s Further Lane compound is starting to look like small potatoes. The Wainscott estate, Burnt Point, on the celebrated shores of Georgica Pond, has been listed for fifty million dollars. Which makes Chevy Chase’s Lee Avenue house, now on the market for fifteen million, seem inconsequential. It’s all enough to really humble a renter with a paltry couple of hundred thousand to spend for the season. Take comfort though in the fact that while sale prices in the Hamptons jumped 20% last year, rentals are up only 4%. Or were they just outrageous to begin with?

They say it’s the economy, stupid—but they don’t say it east of the Shinnecock Canal. Dot coms may have crumbled, techs have tumbled—even NYC rents are said to be stumbling—but the Hamptons rental market believes that stupendous prices are here to stay. Dazzled by all the hype of the last few years, and blithely ignoring the obvious, not to mention those finger-wagging Op-Ed pieces in the New York Times, the pricemakers of houses-to-hire for the 2001 summer season view leasing as an extreme sport, challenging limits and skirting the unreachable.

Who can afford all this indulgence? Meg Ryan (previous security deposit problems notwithstanding) is looking again. Tommy Hilfiger is cruising around for an expensive rental. With Ralph, Donna, Calvin, Helmut and Betsey already in the Hamptons, it only proves you can get from Seventh Avenue to Route 27 without a detour. The shortcut from Wall Street works pretty well too. The names might be less celebrated but the fortunes are immense. Lou Saunders, a principal at Sanford Bernstein, who is building a Loire-sized chateau on Lily Pond Lane, has rented a house nearby from which to supervise. Not exactly a construction trailer, the rental (which was not listed with brokers) is said to be close to $500,000 for the season.

Gotham’s guide to fit every budget (in the six figures, that is) in the Hamptons. FYI: Most rentals are listed with multiple brokers.

The top tier. Full season for half a million. But remember, that’s over seven thousand a day, even if you decide to sleep late in New York.

The Meadow Lane estate recently sold by Marty and Patti Raynes is up for rent by the purchaser. The contemporary oceanfront property has a bit of history, and just about every luxury you’d expect for $550,000. Allan M. Schneider Associates, 631 283-7300.

Brian Bantry’s Goose Creek has 11 bedrooms, a professional screening room, massage room, suntanning room and lots of other unexpected things. You can rent it for weekends for $50,000. Madonna did that two years ago for her 40th birthday, and Peggy Siegel likes it for screenings. Or settle in for the full season for $500,000. Dunemere Associates, 631 324-6400.

Lee Radziwill, soon to be divorced from Herb Ross, won’t be using her seven bedroom 1920’s home this summer. With pool, tennis and 225 feet of oceanfront, it is quietly listed and appropriately priced at $500,000. Sotheby’s International Realty, 631 324-6000.

The second tier, but no one’s going to call you a piker. Full season under $300,000.

In Fordune in Southampton, a sprawling six bedroom home with views of Mecox Bay, Jule Pond and the ocean. $225,000. Allan M. Schneider Associates, 631 537-3900.

South of Daniel’s Lane in Sagaponack, five bedroom traditional with big porches to catch the sea breeze, pool and tennis. $250,000. Sotheby’s International Realty, 631 324-6000.

North Haven bayfront Five bedroom Mediterranean style. $200,000. Dayton Halstead 631 324-6900.

Good selections for under $200,000. Nothing to be ashamed of, we assure you.

Southampton Village, close to ocean, five bedrooms, all the amenities for $135,000. Cook Pony Farm, 631 283-9600.

It’s only August through Labor Day, and it’s $175,000, but it’s a spectacular house on the dunes of Further Lane. Dayton Halstead, 631 324-6900.

Charming gardens and sweeping views in Bridgehampton. Five-bedroom home for $140,000. Allan M. Schneider Associates, 631 537-3900.

Believe it or not, a full season for less than $100,000.

Authentic 1740’s farmhouse with pool in Wainscott, walk to beach. $65,000. James Topping at Allan M. Schneider Associates, 631 537-3900.

East Hampton stylish converted depot, five bedrooms $85,000. Sotheby’s International Realty, 631 324-6000.

Cuddling up with Martha et al.

Once upon a time, you could divide the known world into north and south of the highway. Then some of the moneyed class defected from the traditional preserves of the well heeled, trading their luxurious surroundings for, well, even more luxurious surroundings. Instead of two manicured acres on an estate area lane, they settled into large properties carved from farmland on the north side, with their own golf courses and horse farms and ponds. And established new estate areas. As a result, lots of localities with mini-climates have now been declared legal for habitation.

Combining real estate, behavioral economics, and celebrity culture, the relevant question these days is not where is the house, but who are the neighbors. We offer a quick guide to renting within air kissing distance of your favorite bold face name.

Cooking with Martha Stewart. A stroll down Cottage Avenue, on the corner of Georgica Road, there’s a five bedroom, five-bath house with a lush hydrangea garden on what the brokers are calling an inland dune but you and I call a little hill. $225,000 for the season.

Laughing with Jerry Seinfeld. Across Further Lane, close enough to be neighborly, far enough not to be disturbed by a crying baby, a five bedroom house built in1910 is available for $110,000. As an added big name bonus, Warren Beatty filmed part of Town and Country here.

Getting really close to Alec Baldwin. He might be separated from Kim, but not from the neighbor. They share an Amagansett driveway. Large four-bedroom house with pool and waterfall and a curved shingle Cotswolds style roof. August through Labor Day for $140,000.

Jumping with Christie Brinkley. Calvin Klein fell on his head there. Lots of big names, including Christie, ride at the Topping Horse Farm. For $65,000 you can get a five-bedroom barn-style house overlooking the paddocks.

Getting dressed with Helmut Lang. A sand dune away, on 14 acres, a six-bedroom house is up for grabs at $375,000. Sting once rented this, so did Ted Field, so the neighbors won’t object to a little partying.

It’s only real estate. It’s only one summer. Your life doesn’t depend on it. Wrrrrrong! Life in the Hamptons is an extension of the enterprising and aggressive big city, and your peers are definitely going to judge you by where and how you live. And don’t expect them to be kind. Finding a house is not a gentle process. It’s expensive, competitive and frustrating. Renters have to think strategically and make tactical choices. Here are some hints from those in the trenches.

This is not a learning experience. Know your needs and your limits before you start. You’ll make a more rational decision. Seeing every house, reading every ad, discussing it with multiple brokers doesn’t result in an abundance of great choices. More likely, it will lead to exhaustion and confusion. Instead, take it slow and visit only a limited number of houses targeted to your requirements. Be deliberate. Stay in control of the process. Most brokers agree it can and should be done in one day.

If you have to make some concessions, think outside the box. Question the Holy Grail of lots of bedrooms and baths. You might find a stylish house in a good location that doesn’t have the five bedrooms and baths most families want. Do you really need a guest bedroom? It’s a question of striking the right balance.

Be open on location—as far as north and south. But don’t compromise on your own taste. There are plenty of choices in the Hamptons. If you like fields, don’t look in the woods, even if it sounds like your dream house. If you want a historic village cottage, don’t eye those luxury subdivisions with big yards and pools. But be realistic. Being “near” the beach is not important if you take the car anyway.

There are no little carriage houses on big estates going for a song because the owner wants a dependable tenant like you. Rentals are driven by the market, not emotions. And, for all intents and purposes, there are no exceptions. Be prepared for high prices.

Don’t wait. Although there will always be last minute listings, they won’t be better or cheaper. The market is too strong for that, and the choices may remind you of the last day of a sale at Barney’s.

What you see is what you get. A house that is dirty when you look is not going to be clean when you move in. Look for simplicity. Nobody wants to live with other people’s clutter. Make sure a place feels right. Even in the Hamptons we have rainy days when you’ll be home.

Be philosophical. Who would have predicted that finding a decent rental for less than $75,000 for three months would be one of the great sociological challenges of the new millenium?

Words of wisdom

Diane Saatchi of Dayton Halstead:

“When is a good time to look? When you’re ready to write the check.”

Peggy Griffin of Allan M. Schneider Associates:

“Wall Street has to remember that the market didn’t fall apart here. Rentals are better than last year.”

Frank Newbold of Sotheby’s International Realty:

“Even expensive rentals are a good holding pattern if you’re planning to buy, but still testing the direction of the economy.”

Paul Brennan of Prudential Realty:

“Everyone is looking for privacy. But it’s not here anymore. The people who are asking for it are the same ones who destroyed it.”