For years, Promises Malibu served as a detox destination to the stars. Celebrities such as Britney Spears, Charlie Sheen and Lindsay Lohan flocked to the retreat for an addiction program with a Hollywood spin: rehab, sure, but also tennis lessons, massages and horseback riding.
Now, the coastal compound is hitting the market for $19.95 million.
The listing is the latest development in the property’s storied saga, which started in 1989 when real estate developer Richard Rogg established Promises Malibu as the area’s first luxury treatment center.
It was there that Rogg coined the Malibu Model, an approach that offered a different type of recovery for its celebrity clientele. Cellphones were allowed, and patients could go off-site to hit the gym or keep up with appointments (in between high-end meals of lobster and osso bucco prepared by a chef).
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“It was a combo of serious treatment and health spa,” said Sean Landon of Douglas Elliman, who holds the listing with Jennifer Johnson.
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One of the three homes. (Simon Berlyn)
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The pool. (Simon Berlyn)
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The living room. (Simon Berlyn)
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The family room. (Simon Berlyn)
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The open floor plan. (Simon Berlyn)
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The bedroom. (Simon Berlyn)
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The patio. (Simon Berlyn)
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Aerial view of the compound. (Simon Berlyn)
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The tennis court. (Simon Berlyn)
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The three-acre property. (Simon Berlyn)
The model was a huge success with Hollywood elite, drawing names such as Ben Affleck, Diana Ross and Robert Downey Jr.
Promises Malibu operated as a for-profit business in a traditionally nonprofit space, and before long, Malibu’s sweeping vistas and ocean-view cliffs were loaded with similar-looking rehab facilities wrapped in the sheen of a luxury resort.
But by 2007, the center was facing multiple lawsuits related to consumer rights, breach of contract and unfair business practices. One person told The Times that he paid $42,000 for a monthlong stay for his brother, but after Promises kicked him out for belligerent behavior five days into it, it kept all the money. In addition, its website listed multiple physicians and psychiatrists as staff members despite not being licensed to provide medical care.
Rogg sold the business, but not the land, in 2007. By 2018, the new owners declared bankruptcy, and Promises eventually closed. A new rehab facility opened in its place, and it still operates on the property today.
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The buyer will have to honor thelease of the existing rehab facility, but after that, they can turn it into whatever they want. Landon says he envisions a tech or foreign buyer looking to develop the property into a private oasis, or potentially a developer hoping to turn it into a luxury assisted-living facility.
The three-acre compound boasts three single-family homes with a total of 12 bedrooms and 10 bathrooms across 9,300 square feet. Mostly Mediterranean in style, the homes have been updated multiple times over the years and come with amenities such as two swimming pools and a tennis court.
Oak and fruit trees dot the scenic landscape. In addition, there are three entrances and a sizable parking lot for guests.
“It’s a rare opportunity with three combined lots, so it has the feel of a compound,” Landon says. “There’s a multitude of structures, but also a feeling of privacy.”
If you’re attempting to feel out the housing market at the moment, consider this: People are reportedly camping out in their cars to snag the best lots in a new housing development outside Dallas.
Sure, it’s just one housing development in one city, but the message is clear; folks are getting crazy over real estate again.
It sounds more like a scene from a Black Friday deal at Walmart or Best Buy, but no, this has nothing to do with the latest PlayStation or iPhone.
Instead, these folks camped out (some in cars, some in tents, some on cots) to get the first crack at one of 83 homes that went on sale Tuesday in McKinney, TX, a popular suburb north of Dallas that is one of the top 10 fastest growing cities in the U.S.
First Texas Homes, which is selling the lots, said they expected to sell all of them within 24 hours of launching the sale.
As for why people camped out, it was to get so-called premium lots, such as corner lots. One person in the line already had their lot picked out and didn’t want anyone else to take it.
Meanwhile in Manhattan
It’s not just Texas that’s enjoying a real estate boom. In New York City, the price of real estate in Manhattan hit a new record high during the third quarter.
In the Big Apple, a single square foot would set you back an astonishing $1,497, per a new report from Douglas Elliman.
Douglas Elliman chairman Howard Lorber told CNBC, “Everything is selling fast, I don’t see how there could be a bubble.” Famous last words? We’ll see.
The price per square foot surged 18% from a year earlier and 11% quarter-to-quarter, thanks mainly to new condo developments in the city.
That, coupled with limited inventory, is keeping demand red hot and propelling prices to new highs, whether affordable to the masses or not.
Housing Affordability Best in Two Years
Despite all these home price increases, housing affordability has actually improved over the past couple years.
A new report from RealtyTrac found that while home price appreciation outpaced wage growth between Q1 2014 and Q1 2015 in 68% of U.S. counties analyzed, the average mortgage rate on the 30-year fixed slipped from 4.34% to 3.77%.
Additionally, because wage growth outpaced home price appreciation in 32% of counties included in the report, buying a home in the first quarter of 2015 required a smaller share of the average wage in 58% of counties nationwide.
Still, the average U.S. home price has risen 24% during the housing recovery (since the first quarter of 2012) while the average weekly wage has only chalked a seven percent gain over that period.
That means many regions of the country have fallen out of reach for a lot of potential buyers, especially first-timers that are integral to a sustainable recovery.
The good news is that the average wage has increased 34% since 2006, when home prices were at their least affordable levels in the past 10 years.
The combination of higher wages and lower mortgage rates has led to a 48% improvement in affordability since that time.
But if rates rise just a quarter of a percent, 13% of housing markets will exceed historical affordability norms.
So a lot hinges on mortgage rates staying put, which many believe won’t be the case for much longer. Interestingly, if wages increase and the economy looks better, interest rates will also probably rise, that’s just how the economy works.
If prices continue on their upward trajectory, a wage increase likely won’t help much if mortgage rates rise in tandem.
For the record, “virtually all markets in California and metro New York” are already out of reach, even with nationwide affordability still decent.
In places like Riverside, CA, Orange, CA, Kings, NY, Fairfax, VA, Cook, IL, and Suffolk, NY, wages are growing faster than home prices, but oddly enough homes in some of these places still aren’t affordable.
Perhaps home price appreciation is beginning to top out in some of these hot markets.
Either way, the mentality we’re beginning to see, where home sales are going down like a tent sale (no pun intended), is a bit disconcerting.
Sure, it’s not 2006 all over again, but we’re certainly heading that way, even with those unmissable low mortgage rates available.
As interest rates have climbed, homebuyers have been confronted with higher borrowing costs.
That has led more home purchasers to opt for one strategy, purchasing mortgage points, as a way to defray higher monthly payments.
Mortgage points let buyers pay an upfront fee to lower the interest rate on their loans. In some cases, sellers will help to buy down rates to help ease transaction costs.
Almost 45% of conventional primary home borrowers bought mortgage points in 2022 to reduce their monthly mortgage payments, a trend that has continued into this year, according to recent research from Zillow.
That is up from 29.6% in 2021, when interest rates were lower.
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The 30-year fixed-rate mortgage currently averages 6.7% according to Freddie Mac, up from 5.8% a year ago. The 15-year fixed-rate mortgage now averages about 6%, up from 4.8% a year ago.
This week, the Federal Reserve decided to pause the interest rate hikes it has put in place to combat high inflation.
As rates stay higher, those who are in the market for a home lose purchasing power. Some experts have urged buyers to consider purchasing mortgage points to lower their monthly payments.
Stephanie Grubbs, a licensed real estate agent at the Zweben team at Douglas Elliman Real Estate in New York, recently did exactly that when one of her clients lowered their asking price.
“This fabulous apartment just had a price reduction, which means you can use those savings to buy down your rate,” Grubbs wrote in the updated ad.
Grubbs, a former financial advisor, said her firm started bringing up the strategy more when the Fed started hiking interest rates.
“In an effort to try to be creative, we talk to sellers about offering to buy down a rate,” Grubbs said.
Other experts say buyers purchasing mortgage points can be a great strategy for the right situation.
That goes particularly if a buyer can afford the extra upfront costs.
Being able to lower that monthly payment can really help give some more wiggle room in people’s budgets and help them reach affordability.
Nicole Bachaud
senior economist at Zillow
Mortgage points refer to the percentage amount of the loan. Typically, one point is worth 1% of the loan value, according to Nicole Bachaud, senior economist at Zillow.
If the loan value is $300,000, one point would typically cost $3,000 and lower the interest rate 0.25 percentage points, she said.
“Being able to lower that monthly payment can really help give some more wiggle room in people’s budgets and help them reach affordability,” Bachaud said.
In addition to higher upfront costs, home buyers should also weigh other factors before buying mortgage points.
Set a timeline for living in your new home
“For most instances, it is definitely a considerable cost savings to be able to buy down on points,” said Kamila Elliott, a certified financial planner and co-founder and CEO of Collective Wealth Partners, a boutique advisory firm in Atlanta. Elliott is also a member of the CNBC Financial Advisor Council.
However, if you buy points and then refinance, that will not allow enough time for your upfront payment to appreciate, Elliott said.
Another important consideration is your timeline for how long you plan to live in the home.
With rates and home prices high, that means closing costs are also elevated, Elliott said.
Consequently, if you move before three to five years, you may take a bigger financial hit, she said.
“There could be a huge loss if you can’t stay in that property long enough to have those expenses amortized out over the time that you’re there,” Elliott said.
Consider other alternatives
If you have extra money when buying a home, you may instead choose to increase the size of your down payment.
This can be advantageous because it creates more equity in the home, Bachaud noted. It may also lower your monthly payments.
If that extra money is enough to bring your down payment to 20% of the home purchase price, that would eliminate the need for private mortgage insurance, which adds to monthly costs for mortgage borrowers who put down less than those sums.
However, you may see more of an effect on your monthly expenses by buying points rather than increasing your down payment, Elliott said.
It costs less for a seller to buy down somebody’s mortgage than it does for them to take a price reduction.
Stephanie Grubbs
licensed real estate agent at Douglas Elliman Real Estate
A point may cost $3,000 to $4,000, for example. But putting those sums toward a down payment likely will not make much of a difference on your monthly costs, Elliott said.
If you want to make sure your mortgage payment doesn’t exceed one-third of your take home income, then paying down on points could be the better option, she said.
In some situations, a seller may offer to buy down the rate, a concession to help offset costs for buyers. Grubbs said she has discussed employing this strategy with clients in her real estate practice.
“It costs less for a seller to buy down somebody’s mortgage than it does for them to take a price reduction,” Grubbs said.
Homebuyers may want to consider pursuing a 2-1 buydown, a mortgage that provides a low interest rate for the first year, a slightly higher rate in the second year and a full rate for the following years.
A 2-1 buydown may also sometimes be seller financed, according to Bachaud.
Talking to a loan officer can help you decide the best decision for your situation, Bachaud said.
Factor in the unknowns
How well any homebuying strategy fares in the long run depends on one big unknown: how the Federal Reserve will handle interest rates going forward.
The latest projections from the central bank call for two more rate hikes this year.
While today’s rates feel high, Elliott said she often reminds people that homebuyers in the 1980s would have loved to have had access to 6% mortgage rates.
Buying a home can be challenging these days. Home prices remain high, and interest rates are up significantly compared to a few years ago. In fact, according to Freddie Mac, the average rate on 30-year loans is now creeping toward 7%.
Will rates stay high for the foreseeable future? There’s no way to tell for sure, but there are ways to get around them if they do.
Find out what today’s mortgage rates are here.
What to do if mortgage interest rates stay high
If you’re looking to purchase a house but high mortgage rates are holding you back, here are the strategies that might help.
Buy now, refinance later
One clear option is to buy a house now, at today’s rate, and then refinance your loan when interest rates inevitably drop.
According to Robert Esposito, director of sales at RelatedISG Realty, mortgage refinancing is a particularly good option for those searching for average-priced homes, as their value will only increase in price as time goes on.
“They will encounter the most competition,” Esposito says. “A property worth $500,000 today might be worth $600,000 a year from now, and then you realize you didn’t save any money.”
Check out current mortgage rates here to start exploring your options.
Make a larger down payment
Making a big down payment can help in two ways. First, “it could offer a lower interest rate,” says Sam Sharp, executive vice president of national sales at Guaranteed Rate.
It will also reduce your total loan balance and help you avoid private mortgage insurance, which means lower monthly payments.
“Making a large down payment lowers the total loan amount and interest rate,” Esposito says.” It also makes you eligible for better loan terms or even to avoid private mortgage insurance altogether.”
Consider different loan options
Exploring less-common mortgage products is another option. Adjustable-rate mortgages, for example, offer lower rates than fixed ones for the first few years of the loan. These are good if you only plan to be in the home for a few years — before your rate can increase.
“Having worked with buyers in every stage of life over the years, we find that most people overestimate the amount of time they will live in a property and thus end up with a rate higher than necessary,” says Lindsay Barton Barrett, a licensed associate real estate broker at Douglas Elliman. “If you can get an ARM, you can save substantially — even if you stay beyond the adjustment date. What happens is that you pay a higher mortgage rate for one year in five years versus paying a higher rate for all six years.”
Getting a shorter-term loan can help, too. For example, the current average rate on 30-year loans is 6.71%, according to Freddie Mac. With 15-year loans, though, the average drops to just 6.06%. This could save you quite a bit in long-term interest. Just keep in mind that you’ll have a higher payment due to the shortened pay-off timeline.
Begin comparing your loan options online today.
Stay put and improve your current home instead
If you already own a home, tapping into your equity with a home equity loan, home equity line of credit (HELOC) or cash-out refinance may be another strategy. These allow you to borrow from your home equity, which could provide funds for improving or expanding your current home as needed.
According to CoreLogic, the typical homeowner has a whopping $274,000 in home equity, so this could be a viable option for many. Still, it depends on where you live. If you’re in a condo or tight urban area, for example, there may not be space to expand.
Using your home equity also means taking on more debt, often at variable rates. These rates can be volatile, particularly as the Federal Reserve continues to fight inflation.
“Home equity lines at a variable rate track higher interest rate numbers since they are tied to factors like benchmark rates, which are currently very high,” Barrett says.
See today’s home equity rates and find out how much you may be eligible to borrow.
Buy down your rate
Buying down your rate can work as well. In this scenario, you purchase “points” — usually for 1% of the loan amount — which reduces your interest rate by a nominal amount (typically 0.125% to 0.25%).
“In recent years, we’ve found it very common for buyers to buy points, which act as prepayment interest and reduce the overall interest rate on the mortgage,” Esposito says.
Some lenders also offer temporary buydowns, where a seller or lender pays to reduce a buyer’s interest rate for a set period. After that, it goes back to the normal rate.
“This will allow for a credit from the seller that will pay the interest difference on a loan over the course of one to three years, resulting in a temporary rate reduction as high as 3% below the market rate,” Sharp says. “This is a great way to lower the monthly payment for homebuyers.”
Wait for rates to drop
Finally, you can always wait it out. As they say, “what goes up, must come down,” so mortgage rates will inevitably fall at some point. The question is when.
Fannie Mae’s forecast currently projects rates will finish out 2023 at an average 6.3%. The Mortgage Bankers Association predicts a bigger drop to 5.8%.
Still, these aren’t guarantees. And even if rates drop, it could mean more buyers in the market, which could drive up home prices.
“If rates decrease because inflation is deemed under control, then the economy overall will be more stable and lend itself to confidence,” Barrett says. “Between more purchasing power and confidence in the market, home prices would increase — meaning many will have missed the opportunity to buy real estate.”
Ready to see your mortgage options? Start by viewing today’s rates here.
Every situation is different
There’s no clear-cut strategy for dealing with today’s high mortgage interest rates. The right move for you will depend on your goals, your budget and your personal situation, so make sure to talk to a mortgage professional before deciding how to proceed.
And once you do decide to move forward, make sure to shop around for your mortgage. Freddie Mac estimates that getting at least four rate quotes can save you up to around $1,200 every year.
The COVID-19 pandemic could result in waves of people moving from the city and into the suburbs in search of more space, forecasts show.
While 30% of American say they’ve browsed real estate listings recently, those who live in urban areas are twice as likely as those living in the suburbs or rural areas to actually be interested in buying or renting a home or apartment, according to a new Harris Poll conducted last month. Almost a third of American say they’re considering a move to a less densely populated area due to the coronavirus, the same poll shows. Moreover, nearly four in 10 of those respondents were urbanites who say COVID-19 is what has prompted them to consider such a move.
John Downs, a real estate pro with Berkshire Hathaway in Connecticut, told The Wall Street Journal he’s expecting to see much greater demand for McMansions in more remote locations, once the coronavirus has passed. He said that he’s already noticed an increase in inquiries about properties in remote areas from city dwellers.
A separate report by CNBC shows an uptick among New York’s wealthiest residents who’re looking to move into the suburbs or exurbs in order to enjoy a less crowded lifestyle. Most are seeking more space and distance from their neighbors and crowds, real estate professionals say. For some, it may be they’re interested in buying a second home that’s still close to the city. For others, it may be more permanent.
“It seems like everyone wants to leave the city,” said Steve Magnuson, a broker with Douglas Elliman in Greenwich, Connecticut, in an interview with CNBC. “Our problem is not enough inventory for sale. We’ve been on the phone 24/7 and on email.”
Magnuson recently rented a five-bedroom home with an infinity pool in Greenwich for $55,000 a month—a record high for the town. The rental is now available again but is listed at a more expensive price—$65,000 per month—and has a waitlist of 18 people desiring to rent it.
People in the city who are eyeing suburbia are looking for a more spacious place to run, walk, and ride bikes. Wealthy buyers are also focusing on homes with a pool, large home office, and strong internet and cell services, Magnuson notes.
Could the rush from city to the suburbs be temporary, as it was following the Sept. 11, 2001, terrorist attacks? Brokers report a momentary shift in the market during that time as more people fled the city. But they quickly returned, driven by overseas buyers and young professionals. Even without an exodus, brokers are still banking on a desire for second homes to grow among the wealthy after the pandemic.
“Being able to go someplace not far from your home, where you have a home office and can keep your friends and family safe—that’s number one,” Magnuson told CNBC.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
New York Governor Andrew Cuomo on Monday signed into law new legislation that makes it possible for the state to revoke real estate licenses from agents and brokers who violate anti-discrimination laws.
Cuomo said New York has “zero tolerance” for discrimination of any kind and that the “sheer scope and breadth of the unscrupulous and discriminatory real estate practices uncovered on Long Island is repugnant to who we are.”
The Governor was referring to a November 2019 investigation conducted by Newsday that revealed how some real estate agents in the city were steering some clients towards certain neighborhoods and types of housing based on their race. Lawmakers in New York cited that investigation as the main reason for the new legislation.
Real Estate Board of New York President James Whelan said the law was important for the protection of clients. “All New Yorkers must have equal access and opportunity when searching for housing or commercial real estate,” he said in a statement.
“This law will provide teeth to the enforcement of New York’s Human Rights Law and ensure that real estate agents cannot engage in racist practices like “steering” that deny families the dignity of choosing their home and neighborhood,” said Senator James Gaughran. “I thank Governor Cuomo for his swift singing of this bill into law.”
But not everyone is happy with the Newsday investigation, with some brokerages questioning its findings. For example, Douglas Elliman reportedly said the report was “an unreliable, unethical and unscientific attempt to create a news story where there is none.”
Newsday’s report alleged that undercover testers found that Black home shoppers were treated differently almost half the time by real estate professionals in the state. Other minorities, such as Latinx and Asian shoppers, were also discriminated against, albeit less often, the report said.
New York authorities responded to the report by issuing subpoenas to 67 agents and firms cited in Newday’s investigation.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Real estate agents might have noticed since the pandemic began how face masks make it more difficult to show their personality. Wearing a mask can conceal your expressions, hide your smile, muffle speech and lead to misunderstandings between you and whoever you’re talking too.
But at the same time, they’re essential in many cases to keep your clients comfortable in these pandemic times.
“I felt muzzled,” Learka Bosnak, a sales associate with Douglas Elliman of California in Pasadena, Calif., told The Wall Street Journal about the first time she met a client while wearing a mask. “I was constantly running around saying, ‘I’m smiling under here!’ This business is all about rapport, comfort level.”
So what can we do to overcome the problems associated with wearing a mask?
Above all else, experts say that it’s still important to smile. While your mouth is covered, your smile can still be perceived by others, and even be audible in your speech, British professional etiquette and coaching firm Debrett’s writes in a blog post.
Eye contact is equally important, so be sure not to wear any sunglasses while meeting your clients.
“Eye contact will become even more important when we can’t gauge each other’s expressions,” Debrett’s advises. “Eye contact is the basis of trust, releasing chemicals like oxytocin in the brain.”
Be sure to speak more distinctly too, Debrett’s says. Your speech will be a little muffled by the mask and people can’t read your lips to aid them, so you need to raise your voice a bit and speak more clearly.
Bosnak told the Journal how she went with colleagues to meet a body language expert in order to learn some more tips on how to interact with clients while wearing a mask. She said she learned some important advice, with the most important point being to “face the person, and make sure your feet are in the right place”.
She said that if you don’t do this, it signals that you aren’t listening to your client. “Now it’s become so rote, I don’t even think about not facing a client when I’m talking to them. If they are behind me and ask a question, I will turn around and look at them,” she said.
Bosnak added that it’s important to make sure your body language is positive and open, so you need to avoid things like slouching or crossing your arms. Doing so will help you to come across as more friendly and approachable, no matter if you’re wearing a mask or not.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
A massive 17,602-square-foot home that sits on Highland Beach’s largest oceanfront lot has recently hit the market in Palm Beach County, Florida and has the potential to set a new real estate record.
The trophy property delivers over 150 feet of private manicured beachfront on nearly 2 acres in the ”Estate Section” of Byrd Beach, minutes away from Atlantic Avenue and Boca Raton.
It also sports a price tag worthy of its countless attributes: the mansion is listed for $59.9 million, making it the most expensive home for sale in Highland Beach and the priciest listing in the greater Boca Raton area.
If it sells anywhere near its asking price, the Ocean Blvd. property will become the most expensive home ever sold in the area.
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“This estate is one of the nicest houses in Highland Beach,” says Coldwell Banker Realty agent Jonathan Postma, who holds the listing. “It’s a trophy property that is becoming increasingly hard to find in Florida, especially with two acres and 150 feet of private ocean frontage.”
Interestingly enough, the previous record holder is this very property. The same Ocean Blvd. home sold in April 2022 for a whopping $45 million, a deal that marked the highest sale in the Highland Beach, Boca Raton, Delray Beach, Gulf Stream, and Ocean Ridge area, per the South Florida Sun Sentinel.
The owner, identified by The Real Deal as an Omaha businessman, bought the property in 2022 in an off-market deal, and has since done extensive maintenance/repairs, while also revamping the interiors of the massive 17,602-square-foot mansion.
Featuring modern French-Eclectic architecture, transitional interiors by Marc-Michaels, and fortress-like construction by Mark Timothy Luxury Homes, the $59.9 million Ocean Blvd. house is the epitome of luxury.
SEE ALSO: Serena Williams’ house in Florida has many unique features, but no living room
With 8 bedrooms, 10 full baths and 3 partial baths, the mansion has intricate details throughout, creatively blending an atmosphere of grand-scale entertaining and comfortable beach living.
Inside, some of the standout features of the privately gated estate include a gourmet kitchen with a large center island, double ovens and pantry; an oversized master bedroom with en suite and massive walk-in closet; a home theatre; and a fitness area, among others.
Adding to its beach living appeal, the Ocean Blvd. estate also features a heated pool/spa area with a cabana, outdoor shower, built-in grill, and summer kitchen.
Ultra-high-end real estate in Boca Raton, Florida is on a stratospheric rise, breaking record sale prices every year for five consecutive years. According to a CNBC report, mansions in the Boca Raton area are commanding Miami Beach prices, with the price per square foot of the area’s top-end homes now on par with Miami Beach pricing.
“People tend to think of Miami when the subject turns to high-end South Florida real estate,” Douglas Elliman real estate agent Senada Adzem told CNBC, “But Boca Raton is, without question, one of the region’s premier luxury residential markets.” And the spectacular $59.9 million Highland Beach mansion we covered today is clear proof of that.
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The “Wave House” — one of the most iconic homes on the California coast — just hit the market for $49.5 million. It’s the first time the architectural gem has surfaced for sale in 36 years.
Deriving its name from the cresting rooflines that mimic the wavespitching on the beach just below, the striking structure was built in 1957 by Harry Gesner, the late architect known for designing one-of-a-kind residences along the coast and the mountains above it. Gesner died last year in Sandcastle, another iconic home he designed for himself that sits right next to the Wave House.
He built the idiosyncratic abode for his friend and fellow surfer Gerry Cooper. In 2016, Gesner told Curbed that he drew up the design for the home on a surfboard using a grease pencil.
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“I wanted the house to have the look of a giant wave at the peak of its strength,” Gesner said in Lisa Germany’s book, “Houses of the Sundown Sea: The Architectural Vision of Harry Gesner.”
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The living room. (Simon Berlyn)
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The entry. (Simon Berlyn)
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The dining room. (Simon Berlyn)
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The deck. (Simon Berlyn)
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The deck at night. (Simon Berlyn)
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The exterior. (Simon Berlyn)
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The beach. (Simon Berlyn)
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The coastal home. (Simon Berlyn)
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Aerial view of the property. (Simon Berlyn)
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The ocean. (Simon Berlyn)
Pop star Rod Stewart bought the home in the 1970s and sold it in 1987 to record executive Mo Ostin, the Warner Bros. mogul who worked with artists such as Jimi Hendrix and Stevie Nicks. Ostin also died last year, and his family trust is handling the sale.
The home is a Modernist masterpiece, a reflection of the seaside setting that surrounds it. Drawing inspiration from natural forms, it boasts eccentric archways, rounded decks and walls of glass overlooking the ocean. Inside, a sunken conversation pit is anchored by a floor-to-ceiling fireplace under whitewashed beams.
Real estate records show the home has six bedrooms and seven bathrooms across 6,208 square feet. Other highlights include a landscaped entryway and stone courtyard.
Ostin made a few changes during his stay, brightening the living spaces with shades of blue, turquoise and white to match the seaside setting. He also swapped the pebble roof for copper shingles, which have since taken on a natural patina that matches the coastal color palette.
“The space takes your breath away, but at the same time, you feel relaxed,” said Dena Luciano of Douglas Elliman, who shares the listing on the property. “It’s stunning.”
She added that in its prime, the home served as a gathering place for big names in the music industry. More recently, it appeared in the 2019 film “Yesterday.”
Luciano holds the listing with Drew Fenton of Carolwood Estates and Compass agents Chris Cortazzo and Harry Gesner’s son, Zen Gesner.
If it sells, it’ll be the latest recent blockbuster deal in Malibu. In May, Jay-Z and Beyoncé dropped $200 million on a compound eight miles up the coast, setting the all-time price record in the state of California.
A residential marvel designed by architect Roger Ferris just splashed onto the market in Water Mill, NY, for $27.5 million.
The five-bedroom stunner on 1.6 acres serves up gorgeous views of Mecox Bay and the Atlantic Ocean.
“It’s an extraordinary property,” says listing agent Enzo Morabito, of Douglas Elliman – Sag Harbor. “It’s located in a very top-of-the-line spot near the village of Southampton.”
The lot was purchased in 2014 for $4.3 million, and the steel-frame, 9,700-square-foot home was custom-built in 2017.
Perched above a striking landscape and conservation area, the dramatic design boasts four levels with “walls of frameless structurally glazed glass units,” according to the listing. The modern abode is crowned with a rooftop terrace and an outdoor kitchen.
A boring glass box it is not. Color is employed boldly throughout the home.
The modern interiors are designed to offer views from nearly every room—particularly from the spectacular, glass-walled living room.
A bright-hued kitchen is outfitted with glossy cabinets, solid-surface countertops, and a glass backsplash.
Underfoot, a white resin, gloss-finish flooring is used—a perfect contrast to the home’s vivid palette, which includes a vibrant light fixture, banana-yellow statement wall, and a pop-art-inspired bath.
A spacious primary suite features double bathrooms, including one with a soaking tub and an office. Wall-sized, sliding glass doors capture the views and open to a private terrace.
From the gardens and the pool area to the decks and terraces, there are plenty of spaces to soak in the surroundings.
Just above the heated, illuminated pool is a sleek glass bridge that connects the home’s two wings.
“Whoever buys this house will likely own two or three homes,” Morabito says. “It was built to the highest standards and has always been used as a secondary home.”
The property’s luxurious amenities include a wet bar, gym, media room, elevator, four-car garage, pool cabana, and private dock.
“Its proximity to the ocean and Southampton and being close to New York [City] are what someone will be looking for,” Morabito adds.
In addition to the main gated estate, a renovated guesthouse on a separate parcel is available for $7.5 million.
The three-bedroom dwelling was built in 1956 but underwent a full renovation just three years ago.