Former Surfside Lifesaving Station And Youth Hostel Property Sold For $4.5 Million

The former Surfside Lifesaving Station and Star of the Sea Youth Hostel on Western Avenue was sold on Tuesday for $4.5 million, marking a new chapter in what has been a tumultuous half-decade for the historic property.

The buyer, at this point, remains unknown. According to property records, the .69-acre property overlooking Surfside Beach was purchased on Tuesday by ACK Nightingale LLC, a limited liability company represented by attorney Ryan Kelly, a partner at Scafidi Law in Waltham, Mass. Kelly did not immediately return a message seeking comment on Tuesday.

The seller in the deal was 31 Western Avenue LLC, a limited liability company managed by Blue Flag Capital, which had purchased the property from Hosteling International five years ago for $3.5 million. Blue Flag representatives declined to comment Tuesday evening.

The sale of 31 Western Avenue comes more than a year after Nantucket voters at the 2024 Annual Town Meeting rejected a proposed deal for the town to acquire the property for $6 million and convert it into seasonal housing for island lifeguards, with additional year-round housing units for other municipal staff. When the votes were tallied, only 100 people were in favor of the purchase, while 350 island voters opposed the acquisition.

The Surfside Lifesaving Station property had been operated for decades as the Star of the Sea Hostel before it was sold by Hostelling International to the limited liability company managed by the Boston-based real estate firm Blue Flag Partners in the fall of 2020 for $3.5 million. 

At the time, Blue Flag Partners co-founder Terry Sanford told the Inquirer and Mirror that his development plans for the property included an updated hostel and luxury hotel units. “From a residential perspective, you could carve this up, and given what’s going on in the residential market, there’s a lot of interest there,” Sanford said at the time. “But it’s not what we’re interested in with the property. I’m not going in that direction.”

But less than three years later, Blue Flag announced that it had abandoned its plans to convert the former lifesaving station and youth hostel into a hotel, and intended to sell the property with an initial asking price of $7.9 million, more than double the price it paid for it in 2020.

“Blue Flag brought the project to a shovel-ready status for a full restoration and continued hospitality use,” Sanford said in a prepared statement in February 2023. “Ultimately, we aren't going to be able to give the Star of the Sea the level of attention that we believe it deserves at this time, so we are seeking a new steward who will carry forward our vision to back the grandeur of this one-of-a-kind property."

Before putting it on the open market, however, Blue Flag stated it would give some island-based entities the first crack at it. But when Egan Maritime bowed out of any potential acquisition, the town stepped up to explore a purchase of the property, given its historical significance. Members of the Select Board and town administration met in numerous closed-door executive sessions to discuss buying the former lifesaving station, and in December 2023 they secured a $6 million purchase and sale agreement with Blue Flag that was contingent upon a vote at Town Meeting.

Since that deal fell through, the property had been listed on the market for sale by J. Pepper Frazier for $5,495,000. Co-owner Dalton Frazier declined to comment on Tuesday.

The property includes the last remaining U.S. Life Saving Service building on the island, which dates back to 1874 and served as a lifesaving station through 1921. According to the Nantucket Preservation Trust, “the federal government retained ownership of the site until 1962, when Lilye Mason, a longtime housemother for American Youth Hostels, Inc. successfully bid to purchase the property and convert it for use into a hostel. In 1963, Ms. Mason sold the property to American Youth Hostels, Inc., now known as Hostelling International.”

It was then known as the “Star of the Sea” youth hostel for decades until the property was put on the market by the Hostelling International organization in the fall of 2020. Five bids were received, including one from the Egan Maritime Institute, but it was ultimately Blue Flag’s $3.5 million offer on behalf of 31 Western Avenue LLC that was accepted.

In the aftermath of the sale in 2020, the Select Board voted to transfer an existing preservation restriction on the property - which prevents any alterations to the exterior of the original lifesaving building - from the Nantucket Historic District Commission to the Nantucket Preservation Trust.

“A preservation easement is an excellent preservation tool, as the restriction runs with the deed, regardless of who the owner of the protected building is,” Nantucket Preservation Trust executive director Mary Bergman told the Current at the time. “The preservation easement on the Star of the Sea Lifesaving Station and historic buildings at 31 Western Ave ensures there will be no changes to the exterior appearance of these important buildings without approval of NPT and the Historic District Commission. We look forward to working with the next steward of these structures significant to Nantucket’s history."