Archive for the 'Luxury Listings' Category
Luxury Real Estate Exchanges
This is a market that sometimes brings out the creative forces in real estate. And more and more, real estate exchanges are making lots of sense in the luxury real estate market.
Earlier this evening, I had an interesting conversation with a Sotheby’s real estate agent in Northern California.
It seems he is interested in exchanging his exquisite 104 acre property just outside Carmel for a luxury home in Rancho Santa Fe, just outside San Diego. His acreage offers 380 organic citrus trees that supply local restaurants, two greenhouses that produce basil for Whole Foods markets, Zinfandel grape vines that go you-know-where, and a number of fat and field-fed Angus cattle. He also has plans for an exquisite Tuscan villa that might be built for $1.5 million.
He is seeking to move to Southern California, and to Rancho Santa Fe in particular. And knowing that Rancho Santa Fe property owners love privacy, space and quiet, he thought that perhaps an easy and compatible exchange might be accomplished.
The numbers are certainly workable. He owes less than $800,000 on this parcel, in which he has invested nearly $3 million. He is seeking a Rancho Santa Fe home valued at $1.5 to $2.8 million–and may or may not be accomplishing the transaction via a 1031 exchange.
Quite simply, Northern California landowner wishes to relocate to Rancho Santa Fe and figures that some homeowner there would love the opportunity to exchange properties with him.
Makes sense to me.
So, if you have a Rancho Santa Fe home and have dreams of a bucolic life outside Carmel and California’s premier wine country, please let me know and I’ll arrange for a proper introduction. Just give us a call at 877-818-81979 or 760-402-9101.
And if you have an unusual luxury home exchange proposal of any sort, we’d also like to hear from you!
read comments (0)It appears that even the luxury real estate market will not fully escape the financial ravages that are taking down less-expensive neighborhoods.
Housing Wire asks: Has REO gone jumbo? To find out, they consulted with Integrated Asset Services, LLC in Colorado to see if foreclosures are moving up the real estate food chain. And though not all properties with loans in excess of the the conforming $417,000 are luxury homes, it appears that an increasing number of residences in that loftier lending arena are heading to short sale or foreclosure. In California, for example, IAS and Housing Wire saw 102 REO’s sell for more than $417,000 during April, compared to just 13 in April, 2007.
Anecdotally, we have seen a spike this past year in San Diego luxury homes that are closing as short sales (where more is owed on the property than what it is worth), or which end up as foreclosures and REO’s (real estate owned bank properties). We have also seen that it takes lenders far longer to reach an agreeable sales price compared to smaller loans–and that may be understandable.
On one hand, more money is at stake and greater care must be taken in reaching a fair valuation; on the other, carrying costs (taxes, insurance, maintenance, security and HOA fees) run far higher than ordinary REO’s. And that those are bills most lenders and services do not want to shoulder.
In a recent transaction in coastal Encinitas Ranch, Washington Mutual required two appraisals and took almost four months processing time before reaching an agreed-upon sales price. And during that time, foreclosure sale was delayed twice. The original loan amount was $1.2 million and the final sales price was $880,000. It was a major hit for the lender/investor , but costs would surely have been greater if this Encinitas home had gone to foreclosure.
We are currently involved with two other sellers who have loans exceeding $1 million and whose custom homes could end up as foreclosures if Countrywide and First Franklin investors cannot come up with pricing that reflects current San Diego market realities. Neither home is coastal (which would help prop up valuation) and neither have area comparable sales that would support pricing anywhere near what is owed on these homes.
Outside of our San Diego real estate practice with Villa Sotheby’s International Realty in Del Mar, we are hearing whispers that there will be more luxury short sales and REO’s before the real estate market recovers. And out of the confusion and delays in disposing of these luxury properties will be opportunities that luxury investors have been long awaiting.
And even the ultra-luxury real estate market appears to be experiencing some correction. In 2006, we wrote about Donald Trump’s luxury estate in Palm Beach being offered at $125 million. Recent reports say it sold at just $100 million.
What may have been painful for The Donald would have been a coup for the lucky buyer. I guess every market has silver linings–for someone.
A Luxury Home Bargain: Rancho Santa Fe Farms
by Scott Murphy
Discriminating luxury home buyers in the San Diego area are starting to raise sophisticated eyebrows at some of the better real estate buys in luxury neighborhoods such as Rancho Santa Fe.
One of the best buys on the market these days is a magnificent 4-bedroom, 4.5-bath single story estate on two level acres that was recently remodeled. This Rancho Santa Fe Farms home features a lagoon pool, a citrus grove, fine hardwood flooring and a 4-car garage,and is now available for $2,195,000 or the price of a luxury tract home in coastal San Diego.
Rancho Santa Fe Farms is a favorite for golfers who appreciate equity membership in the Rancho Santa Fe Farms Golf Course, or for those who simply want a home sitting on some of the finest acreage in San Diego County.
Located at 15032 Rancho Santa Fe Farms Road, this residence listed by Danny Powers of Villa Sothebys International Realty will be held open this weekend. For additional information, please call Scott Murphy at 760-613-6190 or meet me at the home this afternoon!
Most Luxurious Home in Lake Tahoe
I love living in coastal San Diego, but have a special appreciation for mountains and mountain lakes. Among other mountain attractions, its the regularity of seasons, the deep blue water, the towering pines, and the snow pack that accumulates each winter.
It is easy to imagine such natural beauty.
Now, imagine a 210-acre mountain estate in Lake Tahoe (the tax-free side) with its own serene private lake and an updated, 70-year-old, 38,000 square foot mansion complex. Offered through Chase International, Lake Tranquilitys splendid main residence replicates many important rooms in our Western culture.
Included is:
- A replica of the grand staircase on the SS Titanic. Ahhh.
- A cushy cigar lounge fashioned after the one at the St. Regis Hotel. Breathe deeply.
- A library that mimics the New York City Public Library. Shhh
This luxurious home includes a 3500-bottle wine cellar, 9 bedrooms, 18 baths, a gymnasium with basketball court, a guest house, art studio, boat house pavilion, horse stables, staff quarters, and two over-the-water par-three golf holes. The conservatory is accessed via an underground passage. There, you are greeted by an indoor mosaic glass swimming pool with poolside bar and exercise facilities all overlooking Tranquility Lake.
The exquisite natural setting provides trails for hiking or cross country skiing and incomparable views of Lake Tahoe and its magnificent surrounding mountains.
Tranquility is offered at $100 million. The owner is reported to be Joel Horowitz, co-founder of the Tommy Hilfiger empire.
If this is a property that might suit your portfolio, please call me at 877-818-8197 or 760-402-9101. An appointment with knowledgeable representation can be arranged.
Bargains in Luxury Real Estate
To paraphrase Charles Dickens, these may be the best of times and the worst of times at least with San Diego real estate.
Few are surprised that the real estate bubble popped in the plethora of new home subdivisions that peppered San Diego County in the last few years.
Stupid loans and and unwitting buyers created a marriage that has crippled the real estate industry.
But not all markets and communities suffer in the same way,
For example, few would consider Rancho Santa Fe, California real estate a bargain, when single family Rancho Santa Fe homes start at $1.15 million and currently peak at $29.9 million.
Moreover, only 16 of the current 167 active listings in RSF are priced under $2 million.
The bargain bin of real estate? Hardly!
Still, we have stumbled across a few notable buys:
- A 3220 square foot Del Rayo Downs home in Rancho Santa Fe was purchased for $1.74 million on 3/14/2006. It is vacant, in lovely condition and has been reduced to $1.395. The owner will even consider a trade.
- A gated, private and single story Mediterranean estate with over 5000 square feet on one acre just closed escrow at $2.1 million. It needed TLC, but the lots and bones were probably worth the total price. Located just outside Fairbanks Ranch.
- A 19.4-acre gated Covenant estate was listed at $29.5 million last August and closed escrow at a paltry $21 million last month. It was reportedly a cash sale.
- A Notice of Default has been filed against a lovely and very spacious 3-bedroom Rancho Santa Fe condo that has recently been reduced to around $1.2 million. I am already calling clients on this one.
- Another Rancho Santa Fe townhome was reportedly purchased for $1.675 million in the summer of 2005. It is now on the market at a value range of $1.3 to $1.4 million, has assumable financing, and guaranteed golf membership in the Rancho Santa Fe Golf Club .
Do we expect Rancho Santa Fe real estate pricing to fall off a cliff?
No way.
But it is certainly worth our time to scout the market to find sound values such as these.
Moreover, many who are now home shopping in Rancho Santa Fe and other luxury neighborhoods now can thank their lucky stars that they werent buying two years ago.
If you would like more information on Rancho Santa Fe or other San Diego luxury real estate, just give me a call at 760-402-9101 or 877-818-8197. You may also email me: roberta@sandiegopreviews.com
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