Costa Mesa Property Sales Contrast with Sagas of Mega-Rich
As U.S. middle-income households find it harder to find or afford suitable properties, denizens of the ultra-high-end of the income scale are, as usual, facing different issues. From the West Coast to the East, the top end of the U.S. housing market’s wealthy clientele has had hit-or-miss sales results over the past couple of decades. But as Broadway’s Evita once advised, “Don’t cry for them, Argentina” (or anywhere else on the planet) because the mega-wealthy usually do eventually manage to weather even wild market gyrations.
The Wall Street Journal explored the current situation for the group of Manhattan’s super-tall condominium towers. Known collectively as “Billionaire’s Row,” these Central Park neighborhood structures are often more than 1,000 feet tall. They serve as the haunts (and investment vehicles) for a global elite whom The Journal labels “tycoons and high rollers.” The buildings are architecturally remarkable for their ability to pack so many extras into super-tall but super-slender structures: features like basketball courts, juice bars, pools, private clubs, and golf simulators. But their sales records have often been a roller coaster of early rush-to-buy enthusiasm followed by oversupply doldrums, then topped off with the chilling effects of the pandemic. COVID provided the black swan event that “stopped the market cold” for some of the mega-towers.
“One57” was the first Billionaire Row building to score early success (it sold its penthouse to Michael Dell for $100.47 million). It was also the first “to lose its luster amid newer, competing buildings.” Originally attracting investment-hungry high-rolling buyers who poured in from overseas, it was a time when, for the international jet set, “money didn’t seem to be an obstacle.” But recent years have seen some early buyers selling for significant losses. In more than a few instances, Billionaire Row investments have turned out to belong to “a less liquid asset class” than forecast.
Costa Mesa property sellers who have been benefitting from quick turnarounds might be surprised at how much better they have fared than what was recently reported all the way across the continent from Manhattan. In Southern California, the high-end saga of John Wayne’s 2,000-acre property was featured in last week’s WREnews.com. Wayne used the 3,000 sq ft ranch house to host celebrity guests for weekend trail-riding parties, but its real estate history has been a box office flop. Friday’s article recounts how “Rancho Pavoreal,” was originally built in the 50s, then purchased by Wayne in the 70s. After the actor’s death, it failed to find a buyer when listed in 2018 for $8 million—perhaps because it was “positioned as a potential cannabis farm.” After being withdrawn from the market, it again failed after another try in 2021 at a $10 million asking price. But “don’t cry for them” either. It was again listed earlier this year, this time asking $12 million—but just sold (finally) for $11.3 million—just 6% below the asking price.
Costa Mesa property sellers may not be listing for 8-figure sums, but then again, they seldom encounter five-year-long delays in finding a buyer. Call me anytime for the latest Days on Market averages!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com
