After attracting Saudi Arabian royalty and other interested international buyers, a Mediterranean-style mansion at 2900 Ocean Blvd. in Corona del Mar went to an owner of local car dealerships who stepped in with a cash offer.
The nearly 11,000-square-foot home sold in mid-August for $7.5 million, down from its original listing of $20 million.
At first glance, that looks like a heck of a deal. And at $687 a square foot, it was a pretty good deal.
But the $12.5 million price cut isn’t necessarily indicative of steep discounting in the luxury home market.
There’s more to the story.
“This was a really interesting deal,” said George Hanold, who represented the seller, a prominent doctor and his wife.
Hanold is a broker with Newport Beach-based Han-old Properties, an independent luxury home and commercial real estate broker.
He and his sister Regan Hanold, an agent with Hanold, worked together on selling the home.
Linda Oetjen, an agent with Coldwell Banker’s Laguna Beach office, represented the buyer.
The 1988 home was designed by the seller and is so unique in taste that Hanold either had to find a buyer who liked the home’s décor as-is or wanted it as a tear-down.
The estate has “unique color schemes and carpeting” and five different kinds of flooring, several pink bedrooms and eight fireplaces, each with a different design. It comes with an ocean view, a six car garage, a large pool, eight bedrooms and 11 baths.
“We found out real quick after many, many showings, especially to overseas clients, that this is not the type of property people are paying top dollar for,” Hanold said. “It became a tough sell.”
Deferred maintenance also cut into the price, he said, and a number of prospective buyers viewed it as a tear-down.
The price was reduced several times and was slated for auction in June before the car dealer emerged.
“We never made it to auction day,” Hanold said. “We found buyers that fell in love with this property. The sellers took a safe option to go with this offer and forgo the auction.”
The buyer also purchased about $1 million worth of the home’s furnishings.
“The sellers were very happy with the offer,” he said.
“It was a tough sell, but there were great features and benefits to the right buyer,” he said.
“We had tremendous interest from Saudi Arabia,” he said.
Buyers from Italy and Asia also looked at the home, which is perched at the steps that lead to Corona del Mar State Beach (known locally as Big Corona beach).
“I was on the phone all day on this property,” Hanold said.
Other interested parties included out-of-state buyers from the financial services sector and other prominent professionals.
“Some real big names,” Hanold said.
The sellers sold the home because they didn’t need so much space anymore now that their kids and two live-in nannies have moved out.
“It became a real motivated sell,” he said.
The sellers now reside in another home in Newport Beach.
Ultimately, the sale doesn’t mean that luxury home prices are in free-fall—but they do need to be appropriately priced.
“Sellers are trying to hold their prices, but the market is dictating something different,” Hanold said.
“Even the biggest players in the game, the billionaires and multimillionaires, want to find value in the marketplace. They’re sophisticated buyers, and just because they have the money doesn’t mean they’re not looking for value,” he said.
Lesser Discounts
A couple of the other $4 million-and-up closings in the past few weeks:
n 853 Via Lido Soud in Newport Beach sold for about $7.8 million, down from $8.25 million when it was listed in June. The 5,145-square-foot, six-bedroom home on the tip of Lido Isle sold for $1,526 per square foot.
Gregory Ziegler, an agent with Coldwell Banker Previews International in Newport Beach, represented the seller. Steve High, an agent with the same office, represented the buyer.
n 28 Fairway Point in Newport Coast sold for $5.6 million, down from $8.7 million when it was listed in August. The 8,200-square-foot, seven-bedroom home that overlooks the Pelican Hill Golf Course sold for $683 per square foot.
John McMonigle, a Newport Beach-based agent with Teles Properties Inc., represented the seller. Marcy Weinstein, an agent with Newport Beach-based Surterre Properties Inc., represented the buyer.
