Month: June 2019

10 Views

This week in celeb real estate:…

Written by The Real Deal

From left: Ellen DeGeneres and her home and Jerry Perenchio and the Chartwell Estate The end of June provided some movement in the market, as celebrities in Malibu and Beverly Hills were able to close deals for homes priced below . In keeping with the broader luxury market trend, uber-pricey Chartwell Estate continued to linger on the market, prompting another wave of discounts. Serial home flipper Ellen DeGeneres is back at it again. This week, the talk show host put her oceanfront home in Carpinteria on the market for . That’s about 30 percent more than what she and her wife, actress Portia de Rossi, paid for the pad less than two years ago. The main residence spans 6,860 square feet with three bedrooms and five bathrooms. There’s also a multi-level guest house, as well as a tennis court. It was previously owned by Los Angeles developer Robert F. Maguire III. Another $50 million was lobbed off the list price of late billionaire Jerry Perenchio’s estate. Once listed at , the property is now on the market for $195 million. That makes it the most expensive home on the market for sale in L.A. County. Known as the Chartwell Estate, the 10-acre spread features a 25,000-square-foot main house, 75-foot swimming pool and tennis court. Before he died in 2017, Perenchio was the CEO of Univision. , heir of a Greek shipping mogul, has paid $15 million to acquire the home directly behind his, Variety reported. The 8,200-square-foot home sits on a 1.3-acre lot, and includes four bedrooms and seven baths. The sellers were Herb and Beverly Gelfand, who originally listed the home for $22 million. Niarchos, who once dated Paris Hilton, bought a Richard Neutra-designed pad on an adjacent lot for $12.8 million in 2011. It’s possible he’ll try to create one massive estate out of the two Beverly Hills properties. Over in Malibu, Kevin Durant has found a straight shooter willing to buy . The NBA champion’s home sold for $12.2 million, roughly the same price he paid for it last year. The oceanfront home spans 5,100 square feet. There are four bedrooms, six bathrooms, a home theater, media room and elevator. Durant is expected to opt out of his contract with the Golden State Warriors by the end of the month.

19 Views

Michael Shvo believes in Beverly Hills

Written by The Real Deal

[video_embed][/video_embed] Michael Shvo doesn’t believe in Los Angeles — he believes in Beverly Hills. Why wouldn’t he? At the end of last spring, he and his partners dished out for 9200 Wilshire Boulevard. The plan is to develop a 300,000-square-foot complex with 54 luxury residential units and 6,000 square feet of retail space. Shvo said at The Real Deal‘s 12th annual showcase that construction is starting . Besides that, Shvo has a couple projects in New York, like at , where he is converting offices into residential condos. What else does he have planned? Where else does he want to build? Watch the above video to find answers and just why he’s so keen on what he’s already up to. Text by Matthew Corkins 

20 Views

On the upswing: Ex-Yankee Alex Rodriguez…

Written by The Real Deal

From left: Stonehenge NYC’s Ofer Yardeni, Alex Rodriguez, and Modlin Group CEO Adam Modlin (Credit: Getty Images) Alex Rodriguez is in a New York City real estate state of mind. The former Yankees slugger plans to buy apartment buildings — big and small — as well as condos. Rodriguez’s A-Rod Corp. is partnering with Stonehenge NYC’s Ofer Yardeni and Adam Modlin, the New York Post reported. Modlin has carved out a niche with celebrities, including Billy Joel, Justin Timberlake and Britney Spears. The founder and CEO of the Modlin Group ranked No. 15 in TRD’s New York 2019 with $127 million in closed sell-side Manhattan sales, up nearly 53 percent from 2017. The broker plans to recruit a new team for his brokerage in 2019. Rodriguez partnered with Barbara Corcoran on the purchase of an apartment building downtown, in what was believed to be the start of a venture, the Post reported. Corcoran said the new arrangement makes sense, though she hopes Rodriguez will continue to partner with her. Rodríguez indicated that the drive for the switch was his desire for larger NYC properties. The focus will be on areas like Chelsea, and the partnership with Stonehenge may include leasing apartments with luxury finishes, with an eye toward elite lifestyles. This not the retired Yankee’s first foray into real estate investment: Rodríguez’ Monument Capital Management, based in Miami, closed its first multi-family fund in April with $21 million, and launched a fund that will focus on workforce housing. He and his now fiancee, Jennifer Lopez, also just sold their 4,000-square-foot apartment at Macklowe Properties’ 432 Park Avenue for . — Georgia Kromrei

14 Views

Prince Harry and Meghan Markle’s home…

Written by The Real Deal

Meghan Markle, Prince Harry and an aerial view of Frogmore Cottage (Credit: Getty Images, Google Maps) Let the whinging commence! British taxpayers may have been dismayed to learn that they covered the cost of rebuilding the royal home of and his wife Meghan Markle. The Duke and Duchess of Sussex paid for furnishings, fixtures and fittings at their residence near Windsor Castle, called Frogmore Cottage. But the $3.06 million project at Frogmore also turned five properties into a single house for the royal couple and their infant son, Archie. The cost of the project was included in the royal family accounts released Tuesday, showing that British taxpayers covered $85.2 million of monarchy costs in the 2018-2019 fiscal year — a whopping 41 percent more than in the previous year. The main reason for the increased spending on the monarchy was the rising cost of a 10-year renovation of Buckingham Palace in London, which began after a Treasury report determined that the structure of the palace was vulnerable to catastrophic failure. According to Michael Stevens, who oversees the royal family accounts as keeper of the Privy Purse, the Frogmore property “had not been the subject of work for some years and had already been earmarked for renovation.” Graham Smith, a spokesman for Republic, an anti-monarchy group, questioned the multi-million cost of the Frogmore project at a time when public services lack funding. The Sovereign Grant, which funds Queen Elizabeth II and covers the official expenses of her household, totals $104 million — and equates to $1.58 per . The royal family had 3,200 official engagements in 2018-19. [] – Mike Seemuth

10 Views

Miami firm to raise $200M for…

Written by The Real Deal

Safe Harbor Equity is raising $200 million to buy distressed real estate loans (Credit: iStock) A Miami-based private equity firm is doubling its fundraising goal to $200 million to buy up distressed commercial real estate loans. founder, Ralph Serrano, said recent European and Asian fundraising tours revealed investors are eager to contribute to a distressed commercial real estate debt fund. Accordingly, despite having not yet raised the initial target of $100 million, the firm is “scaling it up to $200 million,” he told Forbes. While commercial development in South Florida is currently healthy, Serrano is still confident now is still a good time to start the fund, especially as foreclosures increase in the area. One recent foreclosure was initiated by  over $40.6 million of allegedly delinquent construction debt for Costa Hollywood Beach Resort, a new 326-unit condo-hotel in Hollywood. Besides Safe Harbor Equity. London-based Cheyne Capital and New York City-based Churchill Real Estate Holdings are among the private equity firms looking to profit from the distressed loans. Churchill started a $200 million fund dedicated to debt on failed condo developments and struggling retail properties. Cheyne, on the other hand, raised $1.1 billion for a fund that will acquire distressed loans from European banks that want to shrink their loan portfolios to comply with new regulatory and accounting standards. [] – Mike Seemuth

16 Views

Palm Beach estate sells for over…

Written by The Real Deal

Terry Allen Kramer and 1295 South Ocean Boulevard (Credit: Getty Images) An oceanfront Palm Beach estate sold for more than $110 million, according to sources, marking the most expensive single-family home sale in the tony town. The late Broadway producer, Terry Allen Kramer, who died in May, owned the 13-bedroom compound at 1295 South Ocean Boulevard. It hit the market in October , and went under contract in recent weeks. Sources confirmed to The Real Deal that the sale closed on Friday. The Palm Beach Daily News first reported the closing. The identity of the buyer was not immediately clear. The deal beats the previous record for a residential sale, when now-President Trump sold the estate at 515 North County Road to Russian billionaire for $95 million in 2008. Rybolovlev split the lot into three and has been selling them off. Gary Pohrer, Ashley McIntosh, Lisa Wilkinson, Cara McClure and Adam McPherson of Douglas Elliman were listing Kramer’s mansion. Lawrence Moens of Lawrence A. Moens Associates Inc. represented the buyer. Elliman and Moens declined to comment on the deal. Kramer, a Tony award-winning producer and fixture in the Palm Beach social scene, paid $4 million for the property in 1993, and built the mansion two years later, records show. The 37,516-square-foot estate, completed in 1996 by architect Jeff Smith, features wrought-iron gates flanked by elephant sculptures and a two-story entrance foyer with 25-foot ceilings, a five-car garage, boat dock, fitness center, movie theater and gaming area. Known as La Follia, the property also has 210 feet of direct water frontage, 2 acres of green space and a private boat dock, according to the listing. Casino resort magnate Steve Wynn made an offer on the property that Kramer turned down before her death, but is not believed to be the buyer. The deal has not yet been recorded in property records.

16 Views

Lindsey Buckingham goes his own way,…

Written by The Real Deal

Lindsey Buckingham and 299 North Saltair Avenue (Credit: Getty Images) Maybe the buyer was a Fleetwood Mac fan? Lindsey Buckingham, former lead guitarist of the legendary group, sold his Brentwood mansion in one month, a high note in an otherwise down Los Angeles . Buckingham sold the home for $29.5 million, MansionGlobal reported. It at the same price on May 20. Spanning about 10,000 square feet, the custom-built estate has seven bedrooms, a recording studio, a two-story tower and a billiards room. The 1.3-acre property includes a tennis court, gym, swimming pool and guesthouse. Buckingham and his wife, Kristen, paid $6.6 million for the land in 2004, records show. The couple is in the process of building another home nearby. Last year, they sold in the same Brentwood neighborhood for $19 million. It originally had listed at $23 million. [] — Natalie Hoberman 

18 Views

Resort fee wars: Booking platforms are…

Written by The Real Deal

Booking.com CEO Glenn Fogel and Expedia CEO Mark Okerstrom (Credit: iStock) Resort fees, mandatory extra fees that often don’t appear in search results and that travelers sometimes only discover at checkout, have been in recent years as hotels face economic pressures on multiple fronts. And online booking platforms are now responding. Booking.com shook up the industry last month by announcing it would start charging hotels commissions on such fees, reclaiming what it views as its fair share of the revenue it generates for them. Competitor Expedia this week announced that it would be taking a different tack: Instead of taking a cut itself, it would start downgrading hotels that charge such fees in its search results. “Booking’s unilateral and, frankly, blunt move is pretty typical of their playbook with hotels,” Expedia Lodging Partner Services President Cyril Ranque told travel trade publication Skift. “This is simply not how Expedia Group conceives the partnership we want to have with the lodging industry.” The two platforms’ approaches strike at the two main reasons that these fees exist at all: To avoid paying more commissions to intermediaries, and to boost hotels’ position in search results by reducing the up-front room rate. Hotels might now have to give up one benefit or the other. The changes come at a time when hoteliers have increasingly turned toward resort fees as a way of boosting asset value, despite claims that it is anti-consumer in nature. “As you get later in the cycle, [investors] end up really sharpening their pencils to make deals work and when they do that, they sometimes end up cannibalizing themselves,” HVS president and CEO Stephen Rushmore Jr. said at NYU’s annual hospitality conference. [] — Kevin Sun

10 Views

This Silicon Valley home hit the…

Written by The Real Deal

David Sacks and 190 Almendral Avenue Silicon Valley mainstay David Sacks is selling his 11,000-square-foot home in Atherton, the area’s most exclusive town that’s home to numerous tech titans. Sacks is asking $22.5 million for the six-bedroom home, according to Variety. Last year, homes in Atherton sold for a median of $6.7 million, making it the to buy a home in the country. Average annual household income in Atherton is around $450,000, according to Business Insider. Residents include Oracle co-founder Larry Ellison and Facebook Chief Operating Officer Sheryl Sandberg. While not as high profile as some of his neighbors, Sacks has made his mark on Silicon Valley. He was PayPal’s first COO and in 2012 sold his social media company Yammer to Microsoft for $1.2 billion. He’s since invested in a number of hugely successful tech companies, including Facebook, Uber, Airbnb, and Bird. Sacks purchased the Atherton property in 2016, a year after the home and its guest house were built. The house features high end appliances and furnishings, as well as a home theater, pool, and four-car garage. In 2012, Sacks paid $20 million for an even larger home in San Francisco’s Pacific Heights neighborhood — the most expensive in the city — and reportedly spent another $10 million to renovate it. [] — Dennis Lynch 

20 Views

Elmdale Partners looking for big payday…

Written by The Real Deal

Elmdale Partners Principals Adam Freeman (left) and Thomas Bretz (right) with 435 North LaSalle is looking to cash in on demand for River North office buildings with the sale of a property it bought four years ago. The Skokie-based investor is seeking $17.5 million for the 48,000-square-foot building at 435 North LaSalle Drive, after buying the property for $8.1 million in 2015, according to Crain’s. Elmdale spent $1.5 million renovating and re-leasing the four-story brick building after it was purchased. The firm put the building on the market last year before refinancing it for $12 million, according to Crain’s. Now the building is for sale again, and the new buyer will have the right to expand it as much as two more floors. It is 93 percent leased. The overall Downtown office market has been riding high recently, with properties in River North thanks to demand from tech tenants. Elmdale last year in River North before launching an extensive renovation. Cushman & Wakefield’s Cody Hundertmark and Tom Sitz are marketing 435 North LaSalle. — John O’Brien