A significant sale just went through in Water Mill, with two retail spots along Montauk Highway changing hands for a total of $39 million. Those involved in the deal said it was the largest retail real estate transaction the South Fork has seen to date.
The properties are quite familiar to anyone passing through: Water Mill Square, at 670 Montauk Highway, and The Mill, at 760 Montauk Highway. Robert Zecher and Benjamin Rinzler of Vault Development Partners were the sellers, though the buyers’ names weren’t made public.
The team at Compass, specifically Hal Zwick and Jeffrey Sztorc from Hamptons Commercial Real Estate, handled all the arrangements for the sale.
These two spots, taken together, make up a significant portion of Water Mill’s commercial landscape, accounting for 84% of the hamlet’s gross leasing area. Their combined sale highlights growing investor interest in retail properties on the East End, where a limited number of available properties and consistently high household incomes push property values upward.
“This is one of the best assemblages I have ever seen created and sold,” said Hal Zwick of HCRE at Compass.
Water Mill Square, for example, is a 20,500-square-foot complex of shops and offices spread across 2.26 acres. The Mill, larger still, covers 29,314 square feet on 3.66 acres and attracts food outlets, retail businesses, and various lifestyle tenants.
“This transaction is a clear signal of the strength of the Hamptons retail market,” said Hal Zwick. “Assets with this level of visibility, tenancy, and long-term upside are incredibly rare, and achieving a record-setting sale speaks to both the quality of the properties and the continued demand from investors.”
Both of these properties sit right on Montauk Highway, the main commercial artery linking all villages and hamlets in The Hamptons. Their position offers good visibility and a consistent flow of traffic.
It was Rinzler, who had been the longtime owner of Water Mill Square, who eventually teamed up with Zecher in 2023 to buy The Mill. This move brought both properties under one umbrella.
“This portfolio has been a cornerstone of the Water Mill community for years, and it’s been incredibly rewarding to see it evolve into such a vibrant retail destination,” said Robert Zecher. “I’m proud of what we built here and confident these properties are well-positioned for continued success under new ownership.”
Rinzler said, “When my father Milton and I bought Water Mill Square, we had a vision to shepherd a renaissance in Water Mill; making it a destination for experience and culture. I look forward to seeing the new owners continuation of this shared vision.”