11 Biggest Luxury Home Price Drops 2010
Some believe that the Great Recession hasn't been an equal opportunity devastater. While we can all agree that it has shot a cannonball through what was once the middle class, not everyone thinks that the uber-rich have experienced their fair share of the misery. Here are some examples that might prove otherwise.
1) Albemarle House, an elegant mansion located in Virginia's Blud Ridge Mountains, came on the market in 2009 at $100 million. In a blink, the price was slashed to $48 million and now it sits listed at $24 million -- a $76 million or 76% price cut. Think that didn't hurt?
The home is near Thomas Jefferson's Monticello and James Monroe's Ash Lawn-Highland. The 25,000-square-foot main house has 45 rooms and includes a theater, card room, library, and Islamic gallery that features an antique Syrian fountain. There is a pool, pool house, log cabin, greenhouse and a number of staff cottages. The grounds are large enough to install an 18-hold golf course -- which Arnold Palmer has already conveniently designed.
Sotheby's has already auctioned off the artwork and furniture, bringing in $15.2 million and the owner's jewelry fetched another $5 million.
Who are the poor souls behind this financial disintegration?
Patricia Kluge and her husband Bill Moses opened the 907-acre Kluge Estate Winery and Vineyards in 1999. Expansion plans -- and the loans that came with them -- appear to have been their Achilles' Heel. That and the recession, of course. The bank that foreclosed on the business last fall wasn't interested in producing wines and instead sold off the pieces.
Michael Rankin, Sotheby's International Realty, has the listing.
2) Porcupine Creek, the 249-acre Rancho Mirage California estate once owned by Yellowstone Club founders Tim and Edra Blixseth, came on the market at February 2010 at $75 million. The price came down to $55 million -- slightly more realistic but not in the fast lane to a sale by any means.
This is a strange property, perhaps better suited in its next incarnation as a resort instead of a private home. It has a golf club and 19-hole course, an 18,400-square-foot main house, eight guest houses and an amphitheater.
The property is being sold to satisfy debts of the bankrupt Yellowstone project and any successful offer is subject to bankruptcy court approval in Montana. Don't count on the furnishings or artwork to be included; we envision another estate sale for those, squeezing the last nickel out of the property.
Cause of death here: A much-lawyered divorce that was supposed to be amicable, the recession and a bunch of unsettled lawsuits that caused delays. Tim Blixseth was a billionaire timber baron. As part of their divorce settlement, Edra was to take over Tim's half of the the ownership in the Big Sky Montana Yellowstone Club, a ski and golf playground for the super rich, include Bill Gates. Nobody got their act together in time.
A lavish lifestyle and lots of disharmony. While neither of the Blixseths are applying for jobs at Wal-Mart, life isn't what it used to be.
Hilton & Hyland, Beverly Hills, shares the listing with Christie's Great Estates, Santa Fe.
Gallery: Porcupine Creek
3) What can we say about properties that not only made this year's list of biggest price drops but were featured on the same list in 2009 too? The only way you get out of the way of the speeding bullet train is to leap, not try to negotiate with the oncoming train. Clinging to unrealistic price expectations just hurts you. Swallow hard and move on.
The Henry T. Sloane Mansion on East 68th Street in New York City, was listed at $64 million in 2008 and is now listed $25 million under that at $39 million, according to the Corcoran Group website.
The 18,500-square-foot five-story building has 15 bedrooms, 17 bathrooms, seven fireplaces, a rooftop garden and a formal ballroom. Built in 1905, the home is classic Beaux-Arts style and five of the rooms have all their original details intact.There are 15 bedrooms and 17 bathrooms, seven fireplaces, a ballroom and a rooftop garden. The mansion was designed by architect Charles Pierrepont H. Gilbert for Sloane, the heir to a furniture empire.
Two major price slashes and the home is not selling. Worse yet, there is some web buzz about it entering the foreclosure pipeline.
Our prediction: We'll see it on next year's list as well.
Gallery: Sloane Mansion
4) Museum Tower penthouse in San Francisco came on the market in 2008 at $70 million and now is for sale at $49 million -- a $21 million price cut.
This two-story property epitomizes sophistication and sitting atop the 5-star St. Regis Hotel with amazing city views, well, it beats the Dickens why nobody has bought it. It has three grand-scale rooms for entertaining and 21-foot glass walls. The 2,000-square-foot terrace adds living space to the 20,000-square-foot residence that has a private elevator, a double-height cascading water feature in the grand stairwell, and both catering and family kitchens. There are six bedrooms and four fireplaces.
What makes the lack of sale here so interesting is that the Bay Area is one of the few places where prices have been particularly strong. This is a trophy property in a trophy city. Someone should get out their checkbook.
Gregg Lynn, Sotheby's International Realty, San Francisco, has the listing.
Gallery: Museum Tower San Francisco
5) Rocky Oaks Estate, Malibu, California came on the market in late 2009 at $65 million and is now listed at $49 million -- $16 million trimmed.
This large Tuscan-style home sits on 37 acres in the winery-rich part of Malibu. The estate in fact has its own award-winning vineyard, plus dozens of citrus, fruit and nut trees. There are panoramic views of the ocean and lots of lush green hillsides.
Sally Forster Jones, Coldwell Banker Previews, has the listing.
Gallery: Rocky Oaks Estate
6) Val Kilmer's Pecos River Ranch, New Mexico was originally listed at $33 million and now is on the market at $18.5 million -- a $14.5 million price drop.
Kilmer, who operates the 6,000-acre ranch as a bed and breakfast, has had trouble with the neighbors (who took exception to the actor's description of them in a Rolling Stone magazine piece) and Vietnam veterans (who he insulted in an Esquire magazine piece) and now the IRS (who would like him to pay his 2008 income taxes and have put a $500,000 lien against this property until he does.)
But the property is quite breath-taking, even if the man is not. A six-mile pristine trout fishing river runs through it and the place is a regular nature preserve.
C. Patrick Bates of Bates Sanders Swan Land Company has the listing, supported by Darlene Streit of Sotheby's International Realty.
7) Michael Jackson's house. No, the Gloved One never owned this Holmby Hills California property but he was living here as a renter when he died. The house had been on the market at $38 million before MJ moved in as a tenant. Price tag now? $23.5 million -- another hefty $14.5 million drop.
Will the King of Pop's ghost make the French Chateau estate more desirable? Probably only to those who can't afford it.
Built in 2002, the 17,000-square-foot home sits on 1.26 acres and has a theater, wine cellar and tasting room, elevator and spacious spa with gym. The home has 12 working fireplaces.
Gallery: North Carolwood Drive
The house is listed by Jerry Jolton of Coldwell Banker Beverly Hills South office.
8) Sea Lane Drive Malibu dropped $10 million from $55 million to $45 million.
It isn't often that a beachfront property of this size -- 339 feet of beach and 6.6 acres of land -- comes on the market. The estate belonged to Max Palevsky, founder of the computer chip giant Intel. Palevsky died last May.
There are lots of unique features in the two-story, 11,313-square-foot Mediterranean villa -- including two fireplaces in the master suite and side-by-side tubs. All the bathrooms in the house have rare Catalina Tile Factory tiles, manufactured during the factory's 10-year stint and very sought-after today.
The place is a regular resort, right down to the Palm Groves, 40-foot pool, lighted tennis court and home theater.
Jack Pritchett of Pritchett-Rapf Associates, Malibu, and Chris Cortazzo of Coldwell Banker Previews International, Malibu, share the listing.
Gallery: Sea Lane Drive
9) Another $10 million drop was seen at the Webb Project Montecito, California, which was $42.5 million and is now $32.5 million.
Let's just say it: The past couple of years haven't been kind to new construction, not even in communities like Montecito. Brothers Robert and Joey Webb designed this gated estate. The main home has six bedrooms and 8.5 bathrooms. There is also a two-bedroom guest house and a pool pavilion sitting on more than five acres of ocean view land. It may be magnificent, but homes all over have met their match with the Great Recession.
Suzanne Perkins of Sotheby's International Realty, Montecito, has the listing.
Gallery: Montecito Estate
10) Flying Dog Ranch was $56 million, now $46.2 million--$9.8 million price cut
Colorado has some really special properties and the Flying Dog is one of them for sure. The Aspen-area ranch is a four-parcel package that totals 25 acres of land, located in Woody Creek, home to the late Hunter S. Thompson and actor Don Johnson. a
The Flying Dog is adjacent to National Forest land and has private forest access. The sale includes the original homesteading cabin built in the 1800s and a log cabin-inspired main house with log ceilings. Don't let the logs throw you; this place is way cool.
Lynn M. Kirchner, Amore Realty, has the listing.
Gallery: Flying Dog Ranch
11) Knoxville Tennessee's Villa Colina was at $21 million, now at $12.5 million -- an $8.5 million price cut.
This 37,000-square-foot villa has eight bedrooms and 11 bathrooms. The waterfront property has two pools and the home comes with a doorman, library, wine cellar and home theater. We suspect the price-tag on this home would be triple if it was in a fancier ZIP Code. And still, no takers.
Maybe Curbed is right and it just isn't showing well?
Kiran Desai has the listing.
Gallery: Villa Collina
Luxist Editor Deidre Woollard researched and contributed to this post.