North Fork investor to list 88 acres in Cutchogue for $23 million

A North Fork real estate investor plans to list a recently approved 88-acre subdivision for $23 million to attract potential buyers of eight large residential lots and 60 acres of farmland that must be preserved.

Real estate broker Judi Desiderio owns the property, which runs from Oregon Road to Long Island Sound, through Oregon Close LLC. She told Newsday she plans to list the land in the coming weeks to solicit offers before deciding whether she will sell or develop the homes herself following a 7½-year approval process.

The subdivision includes eight residential lots — three 5-acre waterfront parcels, four 2½-acre lots that will have deeded water access and a 2-acre lot with a barn. The remaining area will remain as farmland. DeLea Sod Farm leases the eastern half of the property, and Sagaponack-based Wolffer Estate Vineyard leases vines on the western portion of the site. Desiderio said a buyer could create a horse farm or a vineyard on the farmland among other agricultural uses.

The future development follows a decade of significant home price appreciation on the North Fork. The median price among all North Fork home sales rose above $1 million for the first time earlier this year.

The typical home price has doubled since 2015 when the median was $510,000, according to data from brokerage Douglas Elliman and appraisal firm Miller Samuel. Still, Desiderio said the waterfront lots would command three times as much if they were located in East Hampton, highlighting the potential room for price growth on the North Fork. 

"The trajectory on the North Fork is one where the consumer wants larger lots. They want a higher-quality home where they can vacation," Desiderio said. "People are spending more money on the North Fork than ever."

Last month, a 7,500-square-foot bayfront mansion in Cutchogue fetched the highest sale price ever for a single-lot property, at $11.2 million. 

Desiderio, who has been a real estate broker for 37 years on the East End and an investor for 30 years, said she chose to subdivide the property in a way that would minimize the density of development even though she could have sought to create 20 or more separate lots. She expects the homes will be at least 4,500 square feet. 

"I have always been an advocate for preservation and minimizing the density," said Desiderio, senior vice president at brokerage William Raveis in East Hampton. "Having the opportunity to do that was in keeping with my philosophy."

But as the town has sought to preserve public space it is also facing a crisis for its local workforce who struggle to afford the more than 50% of homes that sell for at least $1 million.

"Everybody recognizes that probably the largest issue out here on the North Fork is housing affordability because it’s chasing people away," said Dave Bergen, a board member at the Cutchogue Civic Association.

Bridget Elkin, a real estate agent at Compass in Southold, said while some North Fork residents may be disappointed to see more luxury homes built, the Town of Southold’s minimum lot size rules which require lots of at least 2 acres in some areas, increase costs for builders and necessitate luxury development. 

"You’re not going to put an affordable ranch on 2 acres," she said.

Elkin expects there will be plenty of interest from luxury buyers on the new subdivision, depending on the final pricing of the homes. 

Southold Town Supervisor Al Krupski said Desiderio’s large lot sizes align with the town’s long-term plan to focus denser development around downtown areas and prevent housing sprawl into the region’s farmland.

"This is a tool the town has used many times, and it works for the property owner because it gives them some building lots as well but prevents the whole area from being paved over," he said.

Krupski said the town seeks to balance preservation and creating affordable housing including through its Community Housing Fund, which has raised more than $5 million through a 0.5% transfer tax on property sales.

"We’re trying to use some money to help subsidize housing for people that’ll be affordable in perpetuity, so people can afford to live here and work here," he said, referring to possible affordable housing programs the town could offer in partnership with builders.

Bergen, at the Cutchogue Civic Association, declined to comment on the specifics of Desiderio's subdivision but said the organization supports preservation as part of any development.

"When we hear of any type of development that includes conservation easements and the preservation of land, that obviously softens the blow of the development," he said. 

Preventing overdevelopment also supports the North Fork’s dark sky movement, which seeks to limit light pollution from homes to keep stars visible out east, he said.

"The goal is to maintain the quality of life out here that we’ve enjoyed for years, which includes being able to enjoy the night sky," Bergen said.