Iconic Lobster Inn Sold For $8.45 Million In Hamptons

SOUTHAMPTON, NY — After years of uncertainty over its future, the former iconic Lobster Inn in Southampton has been sold for $8.45 million — and the parcel will be dedicated to open space, a marina and aquaculture, rather than the proposed 25 luxury condos that raised concerns among some community members.

The Town of Southampton has preserved the bulk of the land and some of the property in fee title, protecting open space and a public marina as well as acquiring development rights to encourage an aquaculture farm with a small restaurant, town officials said.

According to a release from Southampton Town Supervisor Jay Schneiderman, 5.3 acres were preserved by the town in fee title; the town acquired development rights on 4.5 acres both for $7.6 million through the Community Preservation Fund, with the town acquiring open space, water quality improvement land, a recreational area, potential road widening area and development rights.

The former restaurant building and the agricultural land was acquired by a third party aquaculture owner, Inlet Road Operations, Corp, which is affiliated with Manna Ocean Foundation, the release said.

“This transaction will help protect water quality and will preserve the neighborhood from overdevelopment,” Schneiderman said.

Under the agreement, the town's department of parks and recreation will manage the marina.

The former restaurant and marina, located at 1 Inlet Road in Shinnecock Hills, was represented by David Donohue and Joe Peraino of Douglas Elliman and purchased for a total of $8.45 million by the Town of Southampton through the Community Preservation Fund, as well as Inlet Road Operations Corp, Douglas Elliman said in a release.

The additional acreage will be used for development rights to encourage an aquaculture farm with a small restaurant, operated by the third-party aquaculture owner, Inlet Road Operations Corp, Douglas Elliman said.

"It's positive for the whole community," Donohue said. "Joe and I are very happy to have been involved in this transaction, which keeps part of the property available for public use and provides wonderful opportunity for local aquaculture."

For the full Douglas Elliman listing, click here.

Patch photo courtesy Douglas Elliman.