Saunders, Real Estate, Hamptons

Hamptons Life

Feb 22, 2016 11:48 AMPublication: The East Hampton Press & The Southampton Press

Farrell Building Adds Shovel-Ready Packages

A house planned on Roses Grove Road in Water Mill. COURTESY FARRELL BUILDING COMPANY
Feb 22, 2016 12:17 PM

Already well known for its high-end speculative homes, the Farrell Building Company recently started purchasing vacant parcels to make “shovel ready” for home buyers.

The idea is to streamline the process and at the same time suit construction to the buyer “from day one,” the company’s operations manager, Kyle Messinger, said this week. Build to Suit is the name of the program, which was launched about eight months ago by the Bridgehampton-based company.

“We’re looking to acquire lots everywhere, from Quogue to Montauk,” Joe Farrell, the company’s president and CEO, explained this week. “In the last couple of years, land has really gotten so tight that potential clients call me and say, ‘Do you know where there’s any land?’”

Mr. Messinger said the company is looking at properties in every market and price range. “We’ll purchase them and tailor a package specific to each property,” he said.

Farrell will handle permitting, clearing, grading and connecting to utilities, so that the prospective buyer can get a clear vision of what the developed property will look like. Potential buyers can also see which of three options they prefer.

One includes the land, house plans and all permits. Another includes the same components, but the buyer can also modify the plans using Farrell’s in-house architectural staff. The third option includes the land and permits as well as a custom home design—“from concept to final plans”—using the company’s architectural and design teams.

“If you’re shovel ready, you’re taking four months out of the process,” said Mr. Farrell, adding that the idea is to get fall buyers into their new homes by May, when pretty much everyone wants to be able to use them.

Mr. Messinger said the company has purchased nine lots in East Hampton Village, Bridgehampton, Water Mill and elsewhere in Southampton Town, for which it has designs ranging from $3 million to $10 million each. “We’ll continue to grow over the next year,” he said, noting that the company is working with real estate firms both to acquire more land and to market packages that are ready to be built.

Mr. Farrell said there has been “huge interest” in the Build to Suit program, with a few homes already sold in Bridgehampton north of the highway.

“When the good lots come up, we need to buy them,” he said. “Earlier in my career, I didn’t have the luxury” to lay out that much capital, he said, but “after 400 houses, I have that luxury.”

Farrell has completed more than 400 homes on the South Fork since 1996 as well as a number of luxury residences in Palm Beach, Florida, since extending its reach to the south in 2012.

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The Midas touch?

Fiddle Fiddle Fiddle !!!
By Nero (301), Sag Harbor on Feb 22, 16 3:20 PM
1 member liked this comment
Speonk and Eastport could use some nice residential development.
By Mouthampton (439), Southampton on Feb 22, 16 7:44 PM
The two forks of Eastern Long Island are extremely fragile. In 1969, Southampton Town published several research projects delineating the serious issues with our water supply; that was forty-seven years ago. With no means of removing waste coupled with the current status of our drinking water, is additional development really a viable option?
By dmm (7), sag harbor on Feb 26, 16 12:40 PM
1 member liked this comment
I don't see why the towns aren't buying land with the CPF to prevent further development. I understand these projects provide jobs , but is the overpopulation and environmental effects really worth such short term gains? I though the CPF was put in place to preserve our community and our resources ? There isn't much land left to preserve .We may as well buy up the 1 acre , 1/2 acre or even smaller lots to prevent more developments right??
Developers are doing what they do. They will continue ...more
By Hank1 (20), Sag Harbor on Feb 26, 16 5:28 PM
2 members liked this comment
The biggest issue is that it takes a willing seller to offer the property at fair market value based on two appraisals. Unfortunately, someone like Farrell has no problem paying a premium on raw land because he knows he can make up the difference.

So, if you own an acre lot and want $300,000 for it and the Town comes back and says "we can pay $275,000" and Farrell swoops in and says "$350,000 and we close tomorrow" which offer are you going to take?

Sure, there are a few people ...more
By Nature (2966), Southampton on Feb 27, 16 10:14 AM
It's to late folks the east end has been destroyed by high end builders and their democrate backers . Farrell builders are backed by Michael Bloomberg ex Ny city mayor. Southampton town supervisor lets it happen in her township as well again democrats. so you got what you voted for. so after 150 years on the east end we are selling out !!!!!!! It's just not the beautiful east end it used to be. The traffic is horrible and getting worse every year to the point it took me one hour to drive from Southampton ...more
By Eeuu (12), Hampton bays on Feb 27, 16 11:50 PM
1 member liked this comment
The slow erosion of middle class affordability on Long Island, and especially out East has been happening for at least twenty years.

Things really went off the hook after 9/11 and people moved out of NYC.

The real nail in the coffin is M2. I'd cite M3, but it's not calculated anymore. In less than ten years between 1980 and 1989 M2 was doubled from 1.5 trillion dollars to 3.0 trillion. Starting in about 1996 the Fed started working the presses overtime, and M2 sat at about 3.6 ...more
Feb 28, 16 3:20 AM appended by Mr. Z
The great object [of political parties] should be to combat the evil: 1. By establishing a political equality among all. 2. By withholding unnecessary opportunities from a few, to increase the inequality of property, by an immoderate, and especially an unmerited, accumulation of riches. 3. By the silent operation of laws, which, without violating the rights of property, reduce extreme wealth towards a state of mediocrity, and raise extreme indigence towards a state of comfort. ~ James Madison
By Mr. Z (11847), North Sea on Feb 28, 16 3:20 AM
Bloomberg backing Farrell Builders? Where did you get that info? BTW, Bloomberg is a Republican and I'm sure Farrell is too. So take a timeout and try again.
By harbor (415), East Hampton on Feb 29, 16 8:29 AM
1 member liked this comment
Bloomberg was a democrat, changed to Republican to ride Guiliannis coat tails and has now been an Independent for 8-9 years (?)
By jams (129), hampton bays on Mar 1, 16 2:47 PM
Just can't resist can you Mr Z?
By bigfresh (4666), north sea on Feb 28, 16 1:45 PM
What's wrong, you have something against James Madison?
By Mr. Z (11847), North Sea on Feb 29, 16 11:55 AM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By Mr. Z (11847), North Sea on Feb 29, 16 11:55 AM
Farrell creates very few local jobs. Mostly UTI companies that give him low bids.

By Draggerman (955), Southampton on Feb 29, 16 7:54 PM
1 member liked this comment
...and lots of illegal labor.
By bird (829), Sag Harbor on Mar 2, 16 11:09 AM
Maybe he could clean up Riverside and Flanders?
By Mouthampton (439), Southampton on Mar 3, 16 9:14 AM