What 2018 Means for 2019’s Real Estate Market
I’m an optimist and 2018’s top residential sales reaffirms that Los Angeles’ most coveted neighborhoods remain in demand. Last year there were 157 sales at $10 million plus. While that’s down slightly from the year before, it is a 65% increase from 2015. The top luxury buys in 2018 had several elements in common: architectural pedigree, exquisite finishes, rarity and location as the examples below illustrate.
This year has already seen the top price for residential real estate ever in the U.S.: $238 million for a 24,000 square foot Manhattan penthouse on Central Park South designed by Robert A.M. Stern. Ken Griffin, founder of the Citadel hedge fund, is behind the record-setting New York City apartment purchase; he also owns the priciest home in Chicago, his home base. To be clear, that’s $238 million for a second home, demonstrating again the appeal and investment value of high-end real estate.
Although it seems the market is softening a bit, despite lower mortgage interest rates, there are bright spots. In addition to the $110 million sale in Malibu, an architectural on a double Carbon Beach beachfront lot (read more about Malibu sales here), here are the other top residential sales from 2018.
$64.3 Million Off-Market Beverly Hills Estate
An off market listing on a quiet cul-de-sac was Beverly Hills’ highest priced sale in 2018. The compound with 29,000 square feet of living space includes a Georgian-style residence completely remodeled and upgraded by real estate developers Stuart and Stephanie Liner. It was formerly the estate of Danny DeVito and Rhea Perlman who sold the property in 2015. Among the amenities are an expansive marble faced chef’s kitchen, screening room, cigar room, beauty salon and wine cellar in addition to a pool and spa and two guesthouses.
$68.5 Million Holmby Hills Urban Farmhouse
Carolwood Drive is one of Los Angeles’ premier addresses. The 2.15-acre gate estate of former Paramount Pictures chairman Brad Grey on Carolwood Dr. was sold in March 2018 for $68.8 million. The look is ultra luxurious urban farmhouse (by Napa Valley architect Howard Backen) with a multitude of amenities including a screening room, spa pavilion complete with his and her gym and outdoor dining space. Interiors flow seamlessly to the outside; telescoping glass doors create grand openings to the lushly planted interior courtyard.
$85 Million Bel-Air Compound
Per the Wall St. Journal, the off-MLS listing featured two houses on one 4.6-acre upper Bel-Air lot. But these are far from ordinary homes: British architect John Pawson designed the 19,000 square foot, limestone-clad minimalist contemporary in 2009. Elegant lines are found throughout the house, essentially two stacked volumes. A Paul R. Williams five-bedroom showplace is the other home in this compound, which has a zero edge pool, tennis court and incredible privacy.