Megamansions and eye-watering price tags didn’t dominate last week’s roundup of Los Angeles County signed contracts as activity continued to slow.
A dozen contracts were signed last week for total sales of $101.8 million, according to the Eklund Weekly Luxury Report for Los Angeles County. That’s down from the 18 signed in the previous week between June 10 and June 16, when total volume hit $152 million.
Little change occurred in days on the market with last week’s average sitting at 73, compared to the prior week’s 72, according to the report.
Malibu appears to be bucking the slowdown.
The city had the No. 1 and No. 2 largest signed contracts last week. Those come amid some record-breaking closings so far this year, including Oakley and Red Digital Cinema founder Jim Jannard reportedly selling his compound in the beachside city for $210 million to an unknown buyer. There was also Laurene Powell Jobs, who snapped up her fourth Malibu property for $94 million. She is the widow of Apple co-founder Steve Jobs.
Last week, a nearly 13,000-square-foot home at 5046 Carbon Beach Terrace went under active contract. The five-bedroom, nine-bathroom property has a listing price of $38 million.
Dubbed Villa Splendido, the home looks out over Billionaire’s Beach and sits on a 17-acre lot.
Kurt Rappaport of Westside Estate Agency and Ani Dermenjian of Douglas Elliman have the listing.
The property includes a wellness center, elevator, private office, guest house, infinity pool, outdoor pizza oven and bar.
It’s a steep drop in asking prices between the No. 1 contract signed and the No. 2 in last week’s recap.
Read more
Malibu home of Martin Luther King Jr.’s son listed for sale
Oakley founder sells Malibu estate for $210M, a state record
The home at 28834 Boniface Drive in Malibu had the second-largest contract signed, with a listing price of $7.5 million.
Robert Edie of Compass has the listing.
The Boniface Drive home totals five bedrooms and four bathrooms on over half an acre.
Eklund-Gomes began releasing its report on luxury residential pending deals earlier this month, rounding up signed contracts in Los Angeles County. The weekly recap looks at residential properties priced at $4 million or more.
Michael Nourmand isn’t tossing and turning over new rules stemming from the National Association of Realtors’ lawsuit settlement.
Still, the president of the family-owned Beverly Hills brokerage Nourmand & Associates made a big move last week in what he thinks will keep the business ahead of the August rules implementation: displaying buyer agent compensation for all listings on his firm’s website.
“I want to make it easy for buyers’ agents to see what they’re getting paid,” Nourmand said. “They don’t have to ask the question. It will save my agents time because they don’t have to answer that question.”
He also sees the website update as a potential traffic driver. He explained that “we’re in an attention economy” where more clicks can translate to web monetization for the nearly 50-year-old firm, which also counts offices in Brentwood and Hollywood.
As of Aug. 17, brokers will no longer be able to negotiate buyer agent commissions through the MLS. Buyers will also be required to sign agreements with their agents before they begin working together.
The new rules are the result of the $418 million settlement reached in a class action lawsuit against NAR that’s led to uncertainty for some. For Nourmand, he doesn’t see much changing. Instead, he thinks talk of an industry shakeup around commissions has been driven by a one-sided view.
He cited a recent hotsheet of single-family homes running from roughly Echo Park to Pacific Palisades as an example. Out of 112 listings, one did not offer buyer compensation. Nourmand sees this trend continuing post-Aug. 17.
“All of the [settlement headlines] were ‘This is the end of real estate agents,’ ‘They’re all going to be out of the business,’ ‘The compression is going to be unbearable,’ ‘The fee structure in all these other countries is so low,’” he said. “And my whole thing was like, wait, wait, wait, hold on. You’re telling me people in L.A. didn’t know that they could negotiate their fees?”
Negotiations have been part of the homebuying process in the past and will continue post-rule implementation in a market where Nourmand argued many buyers in the higher price segment have long had access to financial advisors, business managers, lawyers and other resources to know their options about commission negotiations.
He went on to add the mushrooming of reality TV shows focused on residential real estate agents can be partly to blame for some of the negative perceptions or misconceptions placed on the profession.
“America sees four agents that are getting a lot of promotion on TV and eating at fancy restaurants, driving expensive cars and it’s truncating the process,” he said. “I’m trying to get a listing right now. I’ve been talking to this lady for over a year. They don’t show that on reality TV.”
Nourmand would agree the industry appearance of glamor on reality shows isn’t necessarily a bad effect. However, these shows offer the experiences of the 1 percent, he said.
“The flip side of it is that [viewers] think we’re a bunch of overcompensated [people], living the life, eating at expensive restaurants, flying on private jets with clients,” he said. “The truth is most agents are grinding it out in the U.S. making $50,000 or $60,000 a year trying to make ends meet.”
If anything, networks and streaming services will at least have a new villain to cast in future seasons, Nourmand suggested.
“This NAR settlement has primetime TV written all over it,” he said. The consumer is dying to hear all of the rough conversations that are going to happen over the NAR settlement. They’re already filming, I’m sure, sellers saying, ‘I’m not paying an agent,’ ‘I’m not doing this,’ ‘I’m not doing that.’ And I think Bravo is going to give exactly what the consumer wants on TV.”
Read more
“A lot of unanswered questions”: Texas agents on the NAR settlement
NAR settlement changes could challenge newer buyer agents in Chicago
The winners and losers in NAR’s historic settlement
For the second time this year, a typical Duke Energy Florida customer will see lower electric bills, this time because of a rate reduction the company is proposing to begin in June to reflect anticipated lower fuel prices.
The company filed a fuel midcourse rate request with the Florida Public Service Commission to account for lower projections for natural gas costs.
Under the proposal, a typical Florida residential customer with a monthly usage of 1,000 kWh would see their bill decline by $5.90, or almost 4%. The savings would be on top of a $11.29 decrease, or about 6%, a decrease that typical residential bills began showing in January.
Similarly, typical commercial and industrial customers will see a bill decrease between 3.5% and 7.0%, varying based on factors, such as industry type and differences in customer use patterns.
“With fuel prices expected to decline, we have an opportunity to lower rates for a second time this year for our customers, just as we prepare for the higher energy usage that come with summer months,” said Melissa Seixas, Duke Energy Florida state president. “We remain committed to providing the best possible price for Florida’s growing population, while delivering the reliable power and customer service our customers deserve today, tomorrow and for many years to come.”
Duke Energy Florida ensures customers receive the best service to their homes, businesses and communities through expertly managing its fuel resources, and its complex systems of power generation, transformers, wires and poles across 13,000 square miles – 24 hours a day, 365 days a year, under the most challenging conditions.
The company also offers several easy-to-use energy efficiency programs and tools to help Florida customers have more control over their energy use and bills.
Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300 megawatts of energy capacity, supplying electricity to 2 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.
South Florida’s total home sales dropped by double digits in March. Above: Royal Caribbean’s employees and guests welcomed the ‘Icon of the Seas’ from the Perez Art Museum as the ship turns around in front of Miami’s skyline early Wednesday morning during its first arrival into PortMiami, January 10, 2024.
Pedro Portal
pportal@miamiherald.com
More homebuyers are sitting on the sidelines in South Florida, leading to a nearly 15% drop in total residential transactions in March.
Miami-Dade County saw 2,141 single-family home and condo sales in March, down from 2,513 a year ago, according to the latest monthly home sales report by the Miami Association of Realtors.
Broward experienced the same trend, with 1,084 home sales, down from 3,133 sales in March 2023.
It’s the first double-digit drop in South Florida since last August and a sign of mounting pressure on home shoppers.
Buyers face two key pressures: mortgage rates and historically high sales prices.
Miami-Dade has a median sales price of $650,000 for single-family homes — an all-time high — and $445,000 for condos. Broward has a median sales price of $607,000 for houses and $288,750 for condos.
People do continue to buy, but real estate analyst Jonathan Miller believes the purchases mostly come from those moving from the Northeast with equity from selling their home, or higher salaries. Miller said more workers will continue to relocate to South Florida and drive activity given South Florida’s business, finance and tech climate.
South Florida “went from a nice place to visit to a nice place to live — that’s the change,” said Miller, president and CEO of the Miller Samuel real estate consultancy firm.
“This was all enabled by work from home,” he said. “That’s why the future outlook for Florida is undergoing a restructuring, the idea that people are looking at it from a different way.”
What is happening with South Florida housing supply?
Buyers have an increasing number of residential options. Miami-Dade has 4.3 months of supply of houses and 8.2 months of condos. Broward has 3.9 months of houses and 7.2 months of condos. A healthy state consists of six to nine months of inventory, with anything below benefiting sellers and anything above swinging in favor of buyers.
Many buyers continue to shop with cash. Miami-Dade saw 37.2% of deals close in cash, and Broward experienced a slightly higher amount at 42.6%. South Florida continues to have a higher percentage of cash buyers than the national average of 28%.
Moving forward, interest rates will likely be the key factor influencing buyers and sellers.
As of Thursday, mortgage lender Freddie Mac has a 7.1% fixed mortgage rate for a 30-year loan, slightly higher from a year ago at 6.35%. Rate cuts appear off the table any time soon, and Miller said that will likely keep more people in place, especially owners and potential sellers.
Rebecca San Juan writes about the real estate industry, covering news about industrial, commercial, office projects, construction contracts and the intersection of real estate and law for industry professionals. She studied at Mount Holyoke College and is proud to be reporting on her hometown. Support my work with a digital subscription
The Joshua Tree property, which looks like a horizontal reflective skyscraper resting in the desert, was listed for $18 million last year — making it the most expensive house ever built in Joshua Tree, a bit over two hours east of Los Angeles.
Over 400 days later, according to its Zillow listing, and after many short-term rentals and plenty of interest from potential buyers — ranging from celebrities to billionaires to art collectors — there are still no takers.
While the 5,500-square-foot home, known as the Invisible House, has attracted a lot of known figures such as Alicia Keys and Demi Lovato, along with influencers and brands Hermés and BMW, finding a buyer has proven a challenge for Aaron Kirman and Matt Adamo of AKG Christie’s International, who represent the property owner.
The uniqueness of the home, the high price range for its remote location and a challenging 2023 market were all contributing factors, according to Adamo.
“It makes it much more difficult,” he said. “2023 one of the hardest markets that we faced, and the buyer pool for this is small, 3 percent of the buyers who are looking.”
Selling a property of this type doesn’t come easy even in a robust market like Joshua Tree, where the average home price is $450,000.
“Joshua Tree is a hot market despite the high interest rates, has really gained traction and scaled even over the last five years, especially during the pandemic,” said Tyler Neale, an agent at Sotheby’s International Realty who’s not associated with the listing. “It’s a popular place for Angelenos, and yet this property is an outlier from the norm in that market in every way.”
“Most spectacular” Airbnb
The character of the property has everything to do with the owner, the film producer and artist Chris Hanley, who along with his wife Roberta were drawn to Joshua Tree and purchased the land there.
The Hanleys were behind movies such as “American Psycho,” “Virgin Suicides” and “Spring Breakers.”
The concept for the Invisible House originated over a decade ago, when Chris Hanley came up with the design and approached Polish American architect Tomas Osinski to bring it to life. Its name describes how the house reflects the surrounding sky, rock and sand in a way that the structure seems to disappear into the landscape.
They began construction in 2013. The design is inspired by New York, where Hanley grew up “feeling comfortable with the monoliths.”
The home is located on a 90-acre property on the border with Joshua Tree National Park, making it the largest parcel of land that shares a border with the park. It was completed in March 2019.
It’s clear Hanley was involved in every inch of the home’s creation.
“It has 36-inch steel beams, maybe the biggest of any residential house in California,” he said proudly.
The house also has sustainability features, including a fully solarcool glass exterior with reflective light filtering and a solar thermal smart system for controlling the pool and hot water.
Once the couple built it, the plan was to live in it.
“We never thought in a million years that it was going to end up being some influencer house,” Hanley said.
As they had more guests come over, the house generated more and more interest from people they didn’t know.
“By the time Alicia Keys came in 2020, she wanted it for five weeks,” Hanley recalled. “So the house is kind of like one of these science fiction forms — it was no longer just Chris and Roberta Hanley’s residential dwelling, it had taken on a form in social media and media at large.”
Eventually it became one of the most desirable Airbnbs in the world, with CEO Brian Chesky calling it a “piece of modern art” and “one of the most spectacular homes in the world on all of Airbnb.”
After that, things really took off and the Hanleys started making rental income from brands including Hermés, BMW and others.
“The amount of income that comes, it’s better than most office buildings,” Adamo said. “You’re getting a potential 6 percent CAP rate.”
Joshua Tree was in fact one of the top two short-term rental markets in California and one of the top 25 in the U.S., according to AirDNA data cited by The New York Times.
Hanley said the house generates around $900,000 each year since 2021 in net income.
That may still not be enough for most buyers to justify the listing price.
“There is no Airbnb price or nightly rate that will make a property of $18 million cash flow that’s practical,” Neale said in reference to the rental revenue. “It’s a hard proposition even as a short-term rental at that price.”
“I don’t think it’s inflated, because it is a piece of art, but it is a hard proposition,” he noted.
“Pyramid in Egypt”
The decision to sell came when the Hanleys realized that the house was getting big and they were ready to move on to other projects.
“When I make a movie, it needs to get out, it needs to be experienced,” Hanley said. “And this was starting to get so experienced by so many people.“
While they have a property management company, they are not looking to become landlords long-term.
“We’re not in the hospitality business,” he said. “We’re creating new forms.”
They’re already on to the next project, which is the Starburst House located nearby in Joshua Tree.
Starburst House
Hanley has big ambitions for his properties and is not shy about it.
“It’s become this kind of social destination, very much like a pyramid in Egypt or something like that, where you just want to go to see this form,” he explained. “It somehow relates to the world at large, there’s some thought that there’s an interaction between extraterrestrial or other life forms or other forms of consciousness that are constantly taking place.”
Needless to say, not everyone can afford to stay at the Invisible House, but everyone can at least follow the Instagram account. It’s available for rent from $2,689 to $7,500 per night, according to property manager Fieldtrip Hospitality.
Demi Lovato was one guest who said she saw aliens there, as per The Wall Street Journal, and the buyer is likely to be someone who has an appreciation for metaphysical experiences, real or imaginary.
The agents trying to sell the property have their work cut out for them: They’ve had a hard time imagining the ideal buyer.
Speaking about potential buyers, Adamo was nostalgic for a minute about the crypto craze of 2021, when newly minted millionaires were quick to invest in real estate and would appreciate the artistic vision behind the property.
“We’ve had billionaires, investors from other countries and everything in between,” he said. “We’ve had brands and CEOs look at this for company retreats, art collectors.”
They had one proposal to build “something in the metaverse” and an idea of partial ownership, which didn’t work out.
Given the level of public and social media interest the house has generated, the buyer is unlikely to be a recluse or a hermit. There is a public performance aspect to the space.
Still, the image of the perfect buyer remains elusive.
“We haven’t figured out who the perfect buyer is for the property, because if we had it would be sold by now,” Adamo said.
Adnan Sen, the developer and founder of Beverly Hills-focused luxury real estate firm Sen Properties, has sold the property known as the Laurel House for $31 million, according to a Zillow listing.
The nearly 1-acre estate, located at 1000 Laurel Way in Beverly Hills, includes nine bedrooms, 14 bathrooms, and spans more than 15,800 square feet. Architect William Hefner designed the home, which traded on Feb. 27.
Pate Stevens of The Agency held the listing. The unidentified buyer was represented by Dustin Nicholas of Nicholas Property Group, which specializes in off-market deals.
Sen and his properties have appeared previously on the Netflix reality series “Selling Sunset.”
In one episode focused on a separate property, Sen priced the home at $100 million, while Oppenheim Group’s Davina Potratz suggested $70 million, according to Screenrant.
“You guys every day [you are] not selling, it’s costing me a fortune,” he told the agents.
Sen Properties acquired the Laurel House for $8.75 million in 2016, according to PropertyShark records.
The main house features three kitchens — a chef’s kitchen, second catering kitchen, plus an outdoor kitchen.There are also two offices, a 12-seat screening room, a wine cellar with a tasting room and a gym with an infrared sauna. The outdoor area includes a pool with built-in seating, fire pits and trees.
The estate comes with a one-bedroom guest house and a “gallery garage” for up to 10 cars.
Homes built on a hill on Mar W street above Tiburon, California. (Photo by Smith … [+] Collection/Gado/Getty Images).
Getty Images
Whether you own a residential or commercial property, when it’s time to sell, it’s important that your broker utilizes all the tools available to maximize exposure. The level of marketing involved with a property sale will play a key role in the final outcome. In the previous article of this real estate series for brokers, we looked at positioning a place in its best light. Now we’ll move to the next step, which addresses the question: How can your broker get your property out to the widest audience?
Maximizing exposure when selling is a component I learned early on in my career as an investment sales broker, under the guidance of my mentors Paul Massey and Robert Knakal of Massey Knakal in New York City. Over the years I’ve observed how taking extra measures when marketing a property can help generate the most interest and maximize the acquisition price.
In the following sections, we’ll break down ways for your broker to spread the word and find the best buyers for a residential or commercial property.
Posting on Multiple Listing Services
Beginning with the basics, there are various channels that can be used to share information about the property. If you’re selling a residential property, you’ll want your broker to place your home on the local or regional multiple listing services. There are also services at a national level such as Zillow and Trulia, and StreetEasy can be used for properties in the New York City metro area. For commercial properties, sites that will help market a property include CoStar, LoopNet, and Crexi. Be sure your broker adds relevant data which will be helpful for buyers, such as dimensions and amenities that make a place stand out.
Taking it a step further, if your broker has a social media following, they can post details about a property with their audience. I’ve found that sharing videos on channels such as LinkedIn and Instagram often generate interest, and sometimes they grab attention more readily than pictures alone. Buyers frequently tune into a professional video that gives them a visual display of the property and its surroundings. Email lists and broker websites are additional ways to share information in a public way with interested buyers. These work best when e-newsletters include engaging content, and online sites are set up to accommodate mobile browsers.
Reaching Out Directly to Investors
While online communication may help to spread the word, the follow up conversations are what will help the sales process move forward. If a broker has sold other properties in the area, they can make the most of their connections. They might pick up the phone and make calls to buyers who missed out on the last deal and are still interested in purchasing a property.
In today’s digital world, sending out postcards or direct mailings can sometimes help set apart a property and catch the attention of investors. They might take the time to read through a piece of paper, especially if it has professional pictures and relevant details listed. Your broker can include contact information and follow up with a phone call if it seems like the property could be a good fit for the recipient.
Connecting with Others Near and Far
Brokers who are active in organizations will have additional resources when marketing a property. In today’s connected world, it’s very important to have an international reach. Even if a firm is global, that doesn’t necessarily mean that a broker is able to tap into its branches around the world. Make sure your broker has evidence that they can reach an international audience. Given current market conditions, we’ve seen an increase in foreign buyers in some areas. These players may be simply waiting to receive information about an asset that fits their buying criteria.
A Successful Track Record
If your broker has sold a number of properties, they can provide details about past transactions. They may also include a list of references or testimonials for each. For brokers who have built a brand, they can show you what that all includes, and how frequently they share information with their investor base.
To truly maximize the exposure of a property, it’s essential to have a broker lay the marketing foundation and then look for ways to go above and beyond. I’ve seen, time and again, how these extra measures can lead to higher prices and a strong track record. For brokers, these strategies can help both the buyers and sellers, and the brokerage business too. In the next article, we’ll look at the steps needed to properly negotiate the sales process. When this is carried out well, the end game can be a success for everyone involved.
The association continues its proactive approach to advancing responsible stewardship of the Blagden Alley Naylor Court Historic District, asks for help with noise, trash, traffic, and infrastructure support for alley businesses
Press Release –
Jun 24, 2022
WASHINGTON, June 24, 2022 (Newswire.com)
– Blagden Alley Naylor Court Association (BANCA) along with Shaw Main Streets, ANC2F, and select alley business owners participated in a productive meeting with Ward 2 Councilmember Brooke Pinto last night. The meeting was part of an ongoing series of engagements with the Councilmember, ABRA Director Fred Moosally, and federal officials—all with the goal of safeguarding residential use of Blagden Alley Naylor Court, and procuring resources for alley businesses while simultaneously preserving the historic character of the alleys.[1] Each building in the alley has been on the National Register of Historic places since 1990.
Over recent years, the alleys have struggled, facing unprecedented challenges; most recently an incident resulting in an assault charge of a club owner seeking an alcohol license in Blagden Alley as reported by the Washingtonian and Fox5 News. “We have a longstanding history of community activism — addressing problematic businesses as well as strongly supporting responsible ones — and we see both our residents and businesses struggling with the overwhelming trash, traffic, and noise in the alley,” said Robert Goldberg, Chairman of BANCA. “We were happy to facilitate attendance at yesterday’s meeting and are encouraged by Councilmember Pinto’s commitment to restoring the alleys.”
Resident Rights: Under District law, Blagden Alley residents are granted explicit rights as related to residential use of the alleys. Specifically, Blagden Alley — “Encourage adaptive reuse and mixed use infill development along Blagden Alley, a residentially zoned block with historic structures such as carriage houses, garages, and warehouses. Appropriate measures should be taken to safeguard existing residential uses as such development takes place.” D.C. Mun. Regs. tit. 10 § A2111.
An Alley in Distress: Several community members shared their struggles with Councilmember Pinto, largely centered around highly disruptive noise, trash and traffic and noting the now 10 alcohol establishments internal to Blagden Alley’s small square block. Amplified Noise: The acoustics of the alley were discussed as noise amplifies and echoes causing conversations between patrons to be heard throughout the alley. Trash Overflow and Traffic Jams: Concerns were expressed over the overflow of trash and the constant onslaught of delivery trucks and rideshare vehicles which have caused severe congestion, contributing to the overall noise and exhaust pollution, as well as pedestrian injuries. “There have been times our trash hasn’t been picked up because there were too many vehicles in the alley and the garbage truck couldn’t get through,” said one business owner.
Meeting attendees emphasized that these challenges have also directly impacted neighborhood use of the alley for activities such as walking pets or for children to ride their bikes safely. Anecdotes were shared about disappointed visitors unable to enjoy the iconic art in DC Alley Museum located in Blagden Alley, or reflect on the alley’s historical significance and century-old buildings. “You can’t take any of the art in when a trash truck or delivery truck is reversing into you,” noted one resident.
Proposed Solutions: Solutions discussed included noise mitigation measures, securing a commercial trash compactor, creating a loading zone on the 9th Street side of Blagden Alley, securing designated parking for residents, and permitting alley traffic to residents and tenants only. Additionally, greater agency education, coordination, and enforcement to ensure the safeguarding of Blagden Alley resident rights were discussed.
“For me, it’s not only about preserving architecture, it’s about residents and businesses working together to preserve alley life and alley living,” said one resident. “We need the District’s support and clear guidelines to reduce confusion, complaints, and hostility.”
Assistant Chief of Police for Patrol Service North Morgan Kane was lauded for her leadership and community care along with Commander James Boteler, and Lieutenant Curtis Miller. BANCA expressed a need for greater agency coordination and action to support MPD.
Councilmember Pinto closed the meeting by condemning any form of aggression towards residents voicing concerns or protesting ABRA licenses. She reiterated her commitment to working with the relevant District agencies to ensure meaningful improvements in Blagden Alley Naylor Court, and reinforced the need for all stakeholders to work together to preserve the alleys as a place where residents and businesses both can thrive.
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The Blagden Alley Naylor Court Association (BANCA) is a citizen’s association established in 1985. Visit us at: www.myblagdennaylor.org. Follow BANCA on Twitter and Instagram: @myblagdennaylor
[1] Blagden Naylor was home to emancipated slaves — here you will find the home of our first Black U.S. Senator Blanche Kelso Bruce, a man born into slavery and who went on to serve in the Senate from 1875-1881. In the 1930s, the struggling community banded together to protect these alleys from the Alley Dwelling Elimination Act of 1943 and an onslaught of Federal government propaganda — if it were not for them, these alleys would not exist today.
