Mar 04 2008
Record deal may be washing away on Billionaire’s Beach.
Over the weekend, several blogs and newspapers were reporting that Nancy Daly Riordan sold her home on Carbon Beach for a price in the vicinity of $62 million dollars. This would be a record sale for Malibu shattering last year’s record sale of Johnny Carson’s home on Point Dume at $35 million. The Real Estalker is reporting that the deal may have fallen through and the original Canadian buyers, may possibly be Russian. The 12,785 sq.ft. house sits on a triple lot on “Billionaires Beach”, aka Carbon Beach, in the heart of Malibu. It may have been in escrow, but even with high end transactions, you might as well translate the word “escrow” to mean “a big maybe.”Even if the deal fails to happen, you can bet everyone else on the beach will assume their beach houses just became worth $10,000,000 more overnight. The very fact that someone even thought of paying that amount sent the smell of money into the salt air and along PCH. I imagine several conversations like this occurred last week. House seller to agent, ”Yeah……how much did the business manager say to list our house for?”Agent ”$17,000,000″Seller “Well, let’s raise it to $27,000,000.” Agent (while calculating the commission) “Good idea! Sign the fax and I’ll make the changes.”
That place can’t be worth $62,000,000. No yard, no privacy and on a busy street? Give me a break. People have too much money that they obviously haven’t worked for.
To much money that they haven’t worked for? If I can find you an African Aids orphan who might say the same about you, will you send them some money? Will you give away your inheritance since you didn’t work for it?
Uh, what’s your point? I wasn’t asking the buyer for money so why would I want to give mine away? And if I ever get an inheritance I certainly wouldn’t give it away because I know the value of it, unlike the potential buyer of the above mentioned house at the stated price who would most certainly be giving his money away, inherited or otherwise.
People pay more for things than they are worth everyday, it’s the basis of a market economy. It’s when they overpay that problems begin. Check out the condo crisis in Miami for an example.
I guess my point was that if someone really works hard for their money, they don’t usually piss it away by overpaying for things.
That house is not worth $62 Mil and probably never will be and if someone actual paid or pays that much for it they don’t know the value of money for any number of reasons.
If you put that $62 Mil in the bank at a conservative 5% you could make 3.1 Mil a year. You could rent that house for $250,000/mth and still pocket money on the principal. Is that house going to go up in value 3.1 Mil year after year forever? Nope.
I see your point but a lot of people trade these beach houses like a stock commodity. You see the previous patterns in our beach market and see a 20 percent return year after year for the last 5 years and go for it. The number sounds high but you are talking about a property that will be desired by many in the years to come. We are so close Hollywood and there will be future Tom Cruises and Britney Spears who make so much money that throwing down a $100 million for a beach house will be nothing. Thanks again for reading the blog and leaving comments.
With the $62mil price tag what you are seeing is an absolute separation of the Wealty and the Ultra High net worth. I’m sorry but celebs come and go, and even then there are only a few that could afford that price anyway. Carbon beach is for titans of industry now only, founders of companies and products that are household names, mega deal makers, monster speculators, etc. I can see 62 fly for that lot and on that beach.
Malibu Lover- You hit the nail on the head. When you can afford to buy a $60m place chances are you are making millions per year just of interest alone with money in the bank. Some people have so much money that its not really about what it’s worth but what the owner is willing to let it go for especially when the new buyer just has to have it. ” I wanna be there now, so whats your price” kinda thing.
Yak,
no backyard?? it has the beach and the pacific… i think you can let go of the yard//