Millionaire's Risky Nantucket Home Purchase Appears to Pay Off Amid Erosion Concerns

A millionaire who purchased a Nantucket home for a substantial discount, despite warnings of coastal erosion, appears to have defied expectations as the property remains secure.

Charles Fotopoulos, a car dealership owner, and his wife, Miglena, acquired the property at 93 Baxter Road on Nantucket, Massachusetts, for $899,000 in 2021. This purchase was notable, as it was one of the few Nantucket home sales below $1 million that year. The previous owners, Steven and Erin Freeman, incurred a $600,000 loss on the property, having bought it in 2007 for $1.53 million when the house was still 50 to 70 feet from the cliff edge.

Currently, the house is situated just a few feet from the precipice of a 40-foot drop to the beach and the Atlantic Ocean. However, this narrow buffer has so far held firm against erosion, suggesting the Fotopouloses' decision to buy the property was a successful gamble.

At the time of the purchase, Charles Fotopoulos expressed awareness of the risks but placed faith in protective measures. "The foundation is structurally sound, and with the geotubes there, unless we have a killer storm, I think we’re safe," he told the Nantucket Current in 2021. "A lot of people think I’m crazy, but if I get five years out of it, I think I’m good. I’ll take that any day."

Geotubes, which are large fabric containers filled with sand or sediment, have been installed along the nearby shoreline since 2008 to combat erosion. The previous owners had also undertaken unauthorized work to stabilize the bluff behind the property in 2017, and they had moved the house closer to the road in 2010. These efforts, it appears, have contributed to saving the house from being claimed by the ocean.

Fotopoulos acknowledged the uncertainty of the situation but believed the risk was justified by the property's potential value. "How long does it last? You and I don’t know that," he said. "It is what it is. It’s a hole in the ocean on Nantucket. It’s really worth $8 million if you really think about it. The next comp down the street is $8.4 million."

The house, originally constructed in 1951, was situated hundreds of yards from the beach. Over the subsequent 75 years, numerous neighboring properties have been lost to coastal erosion. While the long-term stability of the remaining land is uncertain, the past five years have offered a positive outlook for the current owners.