Real Estate Rants Vol. 1: The Most Controversial Property in MTK is Back on the Market

East Deck 1988 Photo from

After an outcry by locals, demanding that the property be sold back to the town and not turned into a two story, private surf club on the beach, the East Deck Motel has been put back on the market.

The previous buyers, ED40 LLC., who caught all that heat last summer, from locals and Ditch Plains lovers alike, for their proposed plan, have decided to take a step back and withdraw their ideas for the building plans. It has been speculated, that they have decided to sell the property and cut their losses to avoid further controversy within the community.

ED40 bought the hotel in November 2013 for $14.75M from the the Houseknecht family, who owned the building for many years, as long as many of us can remember, and built the legacy the East Deck holds today. The controversy began when ED40’s proposed application explained how the LLC. would create a private surf club, with possibility of occupying 179 members. The Ditch Plains Association quickly formulated and started their protest against the proposed plan, which is where the saga really took off.

The controversy became evident when environmental concerns came into play. At that point, the buyers had proposed that they would implement a new septic system to collect waste of up to 537 people, suggesting that 3,661 cubic yards of fill would be placed to elevate the known flood area where the septic system would lie. In addition, there were plans to put an 8,000-square-foot pool/spa and deck in, a game room, a restaurant and café, as well as, the real eye brow raiser, additional parking from the original 36 spaces to 100, with some of those located underground.

Which left the Ditch Plains Association wondering … where? There is only so much space on the East Deck property and with its proximity to the famous Ditch Plains Beach and Atlantic Ocean, to many it seemed preposterous and dangerous for the environment that so many people cherish.

After controversy and news broke of the plans, and the Ditch Plains Association proposed their petition to the town. East Hampton Town explored purchasing the property using CPF funds and although the idea was explored, the process for making such an event happen was complicated, and would have left the ED40 owners in what was speculated to be a $7-8M loss on the property. The town offered the new owners $8M, which was not accepted, and the ED40 owners have now listed the property for a whopping $25M. After months of protest, speculation and back and forth offers, the East Deck is back on the market.

The property sits on five acres of oceanfront land in the neighborhood of Ditch Plains and is known for its old, yet iconic 10,544 square-foot building, which includes 30 single-story hotel rooms, a coffee shop, a wrap-around deck, playground, parking, a storage garage and a luscious grass area surrounding an oceanside swimming pool. In addition, the ED40 owners have already started replenishments on the sand dunes standing between the property and the famous Ditch Plains Beach, adding to the property’s value. So, if you got an extra 25 million sitting around, we suggest you take a look, could be your next big thing, or on the contrary, your next big headache!

Speculation from real estate agents, locals and prospective buyers suggests that there have been a number of bites from heavy hitters throughout the East End to buy the property and that this story, with so much at stake and so much energy behind it, has only just begun.


For more information on the property and its story check out these links: