Foreclosure on Further Lane

The large parcel on the left just sold for $147 million while the smaller one on the road is up for auction. Google Maps

In a Dickensian twist, while one man just purchased the most expensive residential real estate in this country on record, his next-door neighbor’s house is about to be foreclosed upon.

According to Bloomberg News, the 1.8-acre property at 80 Further Lane will be auctioned off on June 10, which will make it the most valuable South Fork foreclosure ever. It was reported in early May that Barry Rosenstein bought an 18-acre property directly to the west at 60 Further Lane for $147 million.

The amount owed on the mortgage of the eight-bedroom, eight-fireplace, 8,100 square-foot house is $10.5 million.  According to tax records it is owned by David Walsh, who purchased the property in 1999 for $2.7 million.

“It surprises me,” said Gary DePersia, a broker at the Corcoran Group. “Why didn’t it go on the market for sale?” Mr. DePersia believes that the property is worth at least what is owed to the bank.  “A one-acre property down the street is asking $13 million and change, and has had offers in the eight figures,” he said. “It would seem to me that something on almost two acres with deeded ocean access would be worth more.”

Mr. DePersia, who was approached by investors sniffing around the property, said he wonders why  “some lender didn’t step up.  It’s unclear why [the owner] couldn’t have gotten financing . . . the property would certainly comp.”