Which home will sell for $100 million in 2014? 夏威夷房地产

Which home will sell for $100 million in 2014?

By: | CNBC Reporter and Editor
         

Source: Sotheby’s International Realty
The De Guigne Estate, Hillsborough, Calif.

At least a half dozen homes in America are priced at $100 million or more.

The question is which—if any—will actually sell for nine figures in 2014?

The $100 million sale seems to have become an annual rite of passage for the luxury real estate market since the end of the financial crisis, a number that seems to sum up both the rising wealth of the super rich and their growing appetite for trophy properties.

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In 2011, Yuri Milner bought a mansion in Los Altos Hills, Calif., for $100 million. In 2012, Stan Kroenke bought a $132.5 million Montana ranch. And this year, a mansion in Woodside, Calif., sold to an unnamed buyer for $117.5 million.

There is no shortage of homes officially listed for $100 million or more. And there are even more $100 million-plus “whisper listings”—homes that aren’t publicly on the market but are quietly seeking buyers at that price.

Yet most homes priced at $100 million or more end up selling at a fraction of that price. The Versace mansion in Miami, also known as Casa Casuarina, was on the market this year for $125 million. It sold at auction for $41.5 million. The Candy Spelling Estate in Bel-Air, Calif., was listed for $150 million, but sold to heiress Petra Eccelstone for $85 million.

Here are some of the candidates, and their likelihood to break the $100-million mark next year.

Copper Beech Farm, Greenwich, Conn. Asking Price: $140 million.
Copper Beech is a stunning piece of land, with 50 acres and 4,000 feet of water frontage, in one of America’s richest neighborhoods. But brokers say it’s mainly a development play, since the house is not all that spectacular. The question is whether a developer would be able to spend $100 million, build homes on the site and still make enough of a return.

Owlwood Estate in Holmby Hills, Calif. Unofficial Asking Price: $150 million.
California seems to be the land of $100 million sales recently, and this home could be a contender. It’s not officially listed, but brokers say the Tuscan estate, with 10 acres and a classic 12,000-square-foot mansion could well trade for nine figures.

The de Guigne Estate, Hillsborough, Calif. List Price: $100 million.
This 47-acre property has been owned by the same family—the de Guignes—for more than 150 years. The 16,000-square-foot home and grounds are just 20 minutes from San Francisco, making it ideal for a newly minted tech billionaire or foreign buyer interested in a foothold in the tech world.

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Steve Cohen Duplex, New York City. List Price is $115 million.
Embattled hedge fund billionaire Steve Cohen is selling this massive duplex at One Beacon Court in Manhattan. The apartment spans about 9,000 square feet with double-height windows and big views of the city. There are more and more sky-high duplexes coming on the market in the city, but brokers say Cohen’s pad is a solid contender for a nine-figure sale.

The Residence at River House, New York City. List Price $130 million.
River House is an unusual offering, to say the least. It’s a five story building that currently serves as a private club and would need a huge investment to turn into a new private residence. But it’s a colossal 62,000 square feet and has a riverfront garden and 62-foot indoor swimming pool. Probably only a Middle East royal or a Russian oligarch would consider the purchase.

Crespi Hicks Estate, Dallas. List Price $135 million.
Private equity chief Tom Hicks is asking $135 million for his 25-acre estate in Dallas. It’s a unique property, with more than 40,000 square feet of living space. But breaking the $100 million would be a big leap in the Dallas market.

—By CNBC’s Robert Frank. Follow him on Twitter @robtfrank.

 

Chinese Steer Billions Abroad in Quest for Safety

By Nadja Brandt, Oshrat Carmiel & Dan Levy – Nov 19, 2013 8:01 AM GMT-1000

Victor J. Blue/Bloomberg
The lot at 421 Kent Ave. in the Brooklyn borough of New York. Xinyuan Real Estate Co.’s acquisition of a two-acre parcel near Brooklyn, New York’s Williamsburg waterfront may be the first time a Chinese company took control of a U.S. residential development site of more than a few units, according to 12 years of data from Real Capital Analytics Inc.

More than a dozen Chinese developers gathered for breakfast at a Los Angeles hotel one Sunday earlier this month before taking off for meetings with property brokers, attorneys and potential business partners.

The visitors, none of whom have invested in U.S. real estate development before, would then catch an evening flight to San Jose, California, and meet with more property executives there and in nearby San Francisco. In all, they would stop in six cities over 14 days, including New York and Washington.

“We like the stable and mature investment market in the U.S. relative to the Chinese market,” Jianrong Qian, chairman of Shanghai-based Chiway Holding Group Co., said through an interpreter before heading off to eat with the rest of his group at the InterContinental hotel in Century City. “We were encouraged by the pace of the recovery here in the U.S. after the financial crisis. It shows the resilience of this market.”

Developers from China are committing billions of dollars to projects around the world, from apartment towers in Brooklyn, New York, and a new business district in the U.K. to a residential redevelopment in Sydney and mixed-use buildings in downtown Los Angeles. Regulatory restrictions at home and concerns that the Chinese property market is overheating are spurring companies to venture outside their country for the first time and look far afield for construction opportunities.

“Chinese companies are getting bigger, so they want to diversify beyond their home base,” said Goodwin Gaw, co-founder and chairman of Hong Kong-based Gaw Capital Partners, which is raising as much as $500 million for its first U.S.-focused fund, to be used for real estate development and management. “They feel like it’s their time.”

Relative Stability

Major U.S. cities and parts of Europe and Australia are appealing to developers for their relative stability and predictable population growth, as well as their popularity among wealthy Chinese individual buyers that may be attracted to the properties. The safety offered is enough of a draw that the companies are tackling cultural differences and unfamiliar approval processes, and at times accepting lower returns.

In the U.S., the six biggest metropolitan areas have attracted $2.88 billion in commercial real estate investment by Chinese companies this year, up from $321 million in all of 2012, according to New York-based research firm Real Capital Analytics Inc. The data include both completed and pending transactions. Manhattan and other New York City boroughs were the two biggest areas for deals, with Los Angeles third.

Lower Return

The Chinese are adding to a wave of investment in top markets by buyers including sovereign wealth funds, real estate investment trusts and private-equity firms. In the six major U.S. metro areas, commercial-property prices reached a five-year high in August, the latest month for which figures are available, and are up 6.2 percent this year, according to Moody’s Investors Service and Real Capital Analytics.

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