Land Bank Buys Beach Compound For $26 Million In Its Largest Purchase Ever

The Nantucket Land Bank completed its most expensive property acquisition ever on Wednesday, closing on a one-acre beachfront compound on the north shore just east of The Galley restaurant and the Cliffside Beach Club.

The Land Bank will pay $26 million for the property that had been on the market for more than five years, and was originally listed for $39 million. The acquisition will provide the island community with “a new public beach in perpetuity,” the Land Bank stated.

It is one of the only properties on the north shore that is zoned residential/commercial, and it had been marketed as a “Nantucket landmark” with potential uses as a residential compound, a luxury boutique hotel, or an exclusive private club. Originally developed as a private beach club in the 1930s, the property includes a recently constructed four-unit main beach house, two stand-alone cottages, two garages, an entry courtyard/garden and a large Belgian-block parking area.

In its announcement of the acquisition, the Land Bank stated it is working with the town’s Housing Office to assess the possibility of relocating the structures to another location on the island to be used for year-round housing. It also intends to ensure that the new public beach becomes an ADA-accessible destination.

"I think anytime someone spends $26 million, it's a little scary, it being the largest price ever and the pros and cons of what else that money could be spent on, and if it's an appropriate use of public funds," Land Bank Commission chair Kristina Jelleme said. "What ended up swaying us the most was how many opportunities do you have to buy downtown beaches in a lifetime? When was the last time we had a downtown beach like this we could buy? We really deliberated and discussed that…We did have the capacity to spend that kind of money, which allows us to continue to invest in properties like this and keep them perpetuity for the public. Because otherwise, the public would be shut out."

The property had been owned by summer resident Thad Huffman’s family since 1952. The family was represented in the sale by Compass real estate agent Allison Mazer, who told the Current there had been multiple offers on the property prior to Wednesday’s closing.

“This is such an inspiring story,” Mazer said. “The Huffman family wanted to give back by offering their multi-generational property for all of Nantucket to enjoy. It’s been an honor to meet a family with such deep roots that is so dedicated to preserving the island and honoring its community.”

The Land Bank also lauded the family’s decision to consider selling the property to the conservation organization.

“We would like to acknowledge the Huffman family who have owned and conscientiously managed this unique property for over 60 years,” the Land Bank stated. “Their desire to preserve and share one of the nicest bathing beaches anywhere prompted them to entrust their stewardship legacy to the Land Bank. They are pleased that the Nantucket community will be able to enjoy it for years to come.”

In May 2024, Compass slashed the original $39 million asking price for 41 Jefferson Avenue down to $29.9 million.

For the Land Bank - which derives its revenue from the 2 percent transfer tax on nearly all real estate sales on Nantucket that is paid by the buyer in those transactions - the purchase price for 41 Jefferson Avenue exceeds the $22.2 million it has taken in so far in 2024. Following the closing on Wednesday, the Land Bank now has $11.4 million in uncommitted funds that could be used for future acquisitions.

For years, its elected members have prioritized the acquisition of waterfront parcels to ensure public access to the island’s harbors and beaches.

Land Bank commissioner Allen Reinhard, who has served as an elected member for 21 years, said he was initially unconvinced that the property was worth it for the Land Bank to acquire at such a high price.

“This was probably the most expensive acre of land on the island, I would imagine,” he told the Current on Wednesday.

Reinhard added that he thought about how the $26 million could have been better utilized elsewhere around the island before ultimately joining his fellow commissioners in a unanimous vote to buy the waterfront compound. He was swayed by the creation of additional public access to the water so close to town, as well as the concern about a “conglomerate” coming in and buying both 41 Jefferson Avenue and the Cliffside Beach Club across the street, which is also for sale.

“This was not an instantaneous decision by any means,” Reinhard said. “It made the whole commission focus on just what is the responsibility of the Land Bank in terms of public access and that it would be a shame if it was sold to a conglomerate that bought it and the one across the way (Cliffside Beach Club) and then imagining what would be down there. We looked at the money, our savings, and how we would pay for it.”

On the day of the vote, Reinhard said, “It was quite a meeting when we had to make that decision. The buyer was there, we negotiated back and forth, and we had offered $25 million. And we realized that once we made the commitment that we wanted the property, that was it. As a result, the overall decision was that it was a valuable property for public access. It is a beautiful beach, protected by the dunes and near town land, and it would prevent it from becoming a super private whatever down there if a buyer came in and purchased both of those.”

Land Bank commissioner Neil Paterson agreed.

"I was very uncomfortable with it at first, but when the price came down from $39 million to $26 million, and looking at what’s selling on the island every week, in the end, this is exactly what the Land Bank is for," Paterson said. It's a once-in-a-lifetime chance to get an acre of waterfront. These buildings will be moved and made available for housing. I think it's a win-win all around."

The Current reached out to former Land Bank executive director Jesse Bell, who resigned from her post on August 9th, to get additional background on the acquisition. However, Bell said she did not negotiate nor have any knowledge of the reasoning behind the Commission’s decision to acquire the property, indicating the deal came together relatively quickly over the past three months.

Just to the west of the property, the Cliffside Beach Club was just put on the market in July for an undisclosed asking price after 70 years of family ownership.

After a surge of property acquisitions in 2022 driven by the post-pandemic real estate boom, the Land Bank has been relatively quiet over the past two years.

In 2022, the Land Bank spent $55.5 million to purchase 13 properties, adding roughly 48.26 acres to its portfolio after accumulating a record $50 million in revenue in 2021.

All photos below by Jack Vatcher