Tag Archive | "KBR Fund LP"

Barons Cove Motel Destined to Be High End Resort Spa?

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Barons Cove Motel, built as a modest one-story motel that faced out on the water when Sag Harbor was emerging as a tourist destination in the early 1960s, may soon have a life as a luxury high-end destination resort hotel.

The 66-room complex, which features a two-story crescent shaped building in front where the original motel stood nearly 50 years ago, and a pair of two-story wings at the rear, was sold on December 30, first to developer Michael Maidan, who then flipped it to developers KBR Fund, LP the same day. Maidan is the developer of the neighboring 21 West Water Street condos, currently under construction. He also hopes to develop a condominium project on the property at the foot of the bridge to North Haven.

The sale price, according to Prudential Real Estate broker Robert Evjen, was $11 million to Maidan, who purchased it from long-time owner/manager Donald Whitehead. Maidan’s sale to KBR was “slightly higher,” said Evjen.

The plan is to completely renovate the building, from “top to bottom,” said Evjen, who added the new owners have no intention to expand the buildings on the property.

“It will get a complete upgrade into a high end hotel,” he said.

Initially, Maidan, who had courted Whitehead for most of 2008 and had an option on the property, had intended to change the layout of the buildings on the property so that all rooms would have a view of the water. In addition, he hoped to add a spa and gym that would complement services in the luxury condos next door. At one point he even offered to build Bay Street Theatre a new theater on site.

But, said Evjen, Maidan became frustrated with confronting village officials on his other projects and decided instead to sell.

“We looked at the building every possible way and the numbers didn’t add up running it as is,” said Evjen, who noted that the code allows for accessory uses, such as a spa or restaurant for the property. “It needs to become a destination, so that they can ramp up the off-season business.”

The new developers expect to have plans in front of the village within the first quarter, according to Evjen.