HÔM Sotheby’s International agent Robert Giem sold 44 Blue Heron in Irvine for $12.8 million.
The home was his first sale in Shady Canyon, and the closing price represents a recent neighborhood high.
The home was sold by Mike Gray, a former president of Irvine-based St. John Knits who went on to found specialty cookie maker Sweet Life Enterprises with the help of his wife, Lori. Gray also has been an honoree and keynote speaker at the Business Journal’s Excellence in Entrepreneurship Awards in recent years (see related coverage of this year’s honorees, starting on page 1).
A few of the most recent sales in Shady Canyon were 26 Grey Owl, which sold last year for $9.5 million; 23 Needle Grass, which sold last year for $8.9 million; and 39 Echo Glen, which sold for $10 million in 2009.
“We’ve shattered that recent high point,” Giem said.
There have been about 24 sales in Shady Canyon in the past three years, according to Redfin.com.
Shady Canyon has about 14 homes priced above $4 million for sale.
The most expensive listing in Shady Canyon is 36 Boulder View, which is listed by John McMonigle, of Teles Properties Inc., for about $15 million.
The Blue Heron home was originally listed in September 2010 for $18.9 million.
Giem represented the Grays, who built a larger home on a golf course in another part of California and relocated. They’re avid golfers and originally moved to Shady Canyon to enjoy the nearby golf course, he said.
The buyer is from Southern California and bought the home as a getaway. The buyer’s agent is unlisted.
Giem said he sold the home by promoting its unique features. The five-bedroom, seven-bath custom home sits on an oversized parcel—nearly an acre—on an elevated street, where it has a view of the golf course and the mountains.
“It’s an exceptionally well-built custom home,” he said.
Giem said sales have been limited in Shady Canyon due to agents conforming to a price-per-square-foot model. The first two offers were made by buyers who made offers based on a price-per-square-foot basis, he said, and many of the agents price Shady Canyon homes at about $800 per square foot.
“It’s unfortunate, because there are a lot of beautiful homes in Shady Canyon,” Giem said.
The 11,441-square-foot home at 44 Blue Heron sold for roughly $1,119 per square foot.
“Price per square foot is a reductive method for determining value,” Giem said.
“It had limited the neighborhood severely, because it wasn’t allowing for the resale market to generate prices that reflected the values of the homes that they were selling.”
Some people may say the sale was an anomaly, he said.
“But it’s not an anomaly,” the agent said. “It’s a willing buyer and a willing seller.”
Giem said price per square foot shouldn’t determine the value of high-end homes but is better suited for commercial property sales and tract home sales, where there are similar houses built in the same year.
“The price-per-square-foot model rewards inferior houses and penalizes superior homes.”
The sale also could be a reflection of an improving market.
“People are seeing this as the last window of opportunity before the market improves,” Giem said.
Giem said he’s had more offers since the beginning of the year than all of last year.
Recent Transactions
There have been at least four recent home sales for more than $4 million.
• 1 Shell Beach in Newport Coast sold for $10.9 million, down from $13.5 million when it was listed in November.
Rex McKown, an agent with Surterre Properties, represented the seller. Lena Doroudi, also a Surterre agent, represented the buyer.
The five-bedroom, seven-bath and 9,303-square-foot home, at the end of a cul-de-sac has views of Newport Harbor and Catalina Island.
• 3 Moon Shell in Newport Coast sold for $6.3 million, down from $6.8 million in November.
The 6,300-square-foot, four-bedroom and four-bath home on a cul-de-sac has an ocean view.
John Cain, an agent with HÔM Sotheby’s International, represented the seller. Jesse Brossa, an agent with Surterre Properties, represented the buyer.
• 2 Sea Glass in Newport Coast sold for $5.7 million, down from $7.2 million in October.
The 7,255-square-foot, four-bedroom, five-bath home is on a corner lot with a five-car garage.
McKown, of Surterre Properties, represented the seller. Hosana Saputra, also of Surterre, represented the buyer.
• 30738 Paseo Elegancia in San Juan Capistrano sold for $4.7 million, down from its listing in January of $4.9 million.
The seven-bedroom, 13,000-square-foot home was a foreclosure. The Italian villa-style home is behind the gates of Marbella Country Club.
Steve deVre, of Prudential California Realty, represented the seller. Rick Langevin, of Surterre Properties, represented the buyer.
Email recent transactions above $4 million to cruz@ocbj.com.
