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O.C. price record set for off-water home: $27.125 million
May 12th, 2008, 10:06 am · 62 Comments · posted by Jon Lansner/O.C. Register columnist
(Updated with pricing information from county records.)
A Corona del Mar home has been sold $27.125 million (close to its $28 million asking price), according to information derived from county records — reportedly the highest price for “an off water property in Orange County,” according to Rob Giem of HÔM Real Estate Group.
The home, known as “Hale O Pau Hana,” is located at 411 Avocado Avenue in Corona del Mar. Giem described the house as …
A long private drive serves as the entrance to the 1.4-acre landmark estate that extends to a bluff overlooking Newport Harbor. The main living areas comprise 15,000 square feet on one level and are designed around the estate’s centerpiece–an open-air palm-lined pool court with a free-form infinity-edge pool and spa surrounded by palms. Vast banks of glass doors surround the entire pool court and open onto the estate’s interior, creating the ultimate in an indoor–outdoor lifestyle. The estate offers numerous high-tech facilities that include an office with telecommunications, networking, and video conferencing, security systems, a 12-seat theater, and a stage with audio and video broadcasting capability. Other facets of this state-of-the-art compound are the 5,000 square-foot subterranean level, made accessible by a commercial elevator, featuring a 16-car garage and workshop, a gym, a secured storage area, and mechanical rooms.
The sellers were technology executives Wendy and Rick Aversano. The buyer is an investment group, according Giem. According to property records tracked by Redfin.com, the home last sold for $4.65 million in ‘88 and has a 2007 taxable value of $13.57 million.
Luxury homes seem to be still moving in the O.C. Here are a few recent sales …
• Anaheim Hills home fetches near-record $6.3 million.
• $35 million paid for actor Nicolas Cage’s Newport Beach home.
But … SoCal ‘prestige’ home-price index relatively flat. Makes you wonder if a well-known Ortega ranch, back on market for $22.5 million, will sell soon.
And how’d we get the price? County records show that the transfer tax totaled $29,837.50. Based on that, the sales price would be $27,125,000!
May 12th, 2008 at 10:11 am
see? another sign that the market is stabilizing.
Just forget the other 99.9% of listings that are upside down from the market peak, let’s just focus on the 25 multi million properties that are going to sell this year.
At least, that is what the permabulls hope for.
May 12th, 2008 at 10:14 am
Obviously this was another one of NationalBubbleHead’s distressed sales. Woe is he, woe is he. “I feel sad for the poor people going down the tubes, in Orange County.”
I wonder if the buyer went through Redfin?
May 12th, 2008 at 10:29 am
Sweet property! One can wish.
May 12th, 2008 at 10:53 am
Well, in any case, this home is in my neighborhood (and I’m happy to see high end prices firming up). However, that is not the case in the inland areas where Sighburrdood lives and owns his upside-down homes.
BTW, these people paid 4,650,000 for this house back in 1988
Even if they sold at the asking price of $28 mil (which I doubt it)
that would mean 6X increase over 20 years.
If they had put their money in a stock like Microsoft back in 1988, they would have increased their capital by more than 30X, even when Microsoft stock hasn’t done much since 2000.
That shows you that Real Estate is not the best investment.
Before you tell me that stocks don’t provide you shelter while a home does, keep in mind that when owning stocks you don’t have to pay maintenance fees and property taxes either.
These people are paying $138K/ year just in property taxes. Ouch!!! That’s probably why they are selling. LOL
May 12th, 2008 at 11:02 am
Yet more evidence that the coastal areas are holding up.
May 12th, 2008 at 11:05 am
My guess would be 17-18 M based on comps. 28 M is just out of line with fundamentals
May 12th, 2008 at 11:10 am
Sigh, just ignore the snot-nosed, pissant, pathetic excuse for a human being who keeps baiting you.
May 12th, 2008 at 11:19 am
How is this even interesting to the average home buyer or seller?
May 12th, 2008 at 11:34 am
So much for inland properties being worth zero!
May 12th, 2008 at 11:44 am
This is an awesome house, no doubt about it. Check out the info in this article about the other side of the RE picture. Of course none of this applies to OC, AKA God’s Country.
http://realestate.msn.com/Buying/Article_slate.aspx?cp-documentid=6914731
May 12th, 2008 at 11:52 am
nbsp;NationalBubble.com says “Before you tell me that stocks don’t provide you shelter while a home does, keep in mind that when owning stocks you don’t have to pay maintenance fees and property taxes either.”
But Mr. Bubble….you gotta live somewhere. If you can afford it, as these people clearly can, why not wake up surrounded by your money so you can enjoy it every day?
I would bet they didn’t have 100% of their money in their house, either. Most people with these kinds of means have stock and other equities holdings in addition to their real estate. In fact, most don’t rely on their real estate for anything BUT a comfortable lifestyle. If it makes money for them some day, then great!
You may “live in the neighborhood”, but I guarantee these people (and most CDM residents) would not count you as a friend or have you over for a swim. It’s lonely at the top, huh?
May 12th, 2008 at 11:56 am
NationalBubbleBath had this to speculate: “However, that is not the case in the inland areas where Sighburrdood lives and owns his upside-down homes.”
Nice try internet pimp, but NONE of my rental properties is even remotely close to being upside down, ( an average of 50% equity at TODAY’S prices.) and my personal residence is probably worth twice as much as yours, and is owned “free & clear”.
May 12th, 2008 at 12:04 pm
Anonymouse Says: “You may “live in the neighborhood”, but I guarantee these people (and most CDM residents) would not count you as a friend or have you over for a swim. It’s lonely at the top, huh?”
I don’t have any intention to have them as my friends. Unlike you, I don’t pick my friends based on how much money they have.
I never said that people shouldn’t buy a home to live. I own my home. You have to live somewhere.
All I’m saying is that people should not believe realtors when they tell you that real estate is the best investment.
If you read this article, these people made their money in technology, not in real estate.
“The sellers were technology executives Wendy and Rick Aversano. “
May 12th, 2008 at 12:06 pm
bought by an investement group, what so they can fix it up and sell for $35M at the next turn?
who knows but I think I’d want a lot better return on my investment. then again I’m sure they can find some schmuck to rent it out for 50k a month right.. it’s the OC
I also find it hilarious when people go around naming their houses. always a sign that they have too much time and/or money on their hands. Hearst Castle, Monticello or Vista Del Lago I can understand but this one’s not quite close.
May 12th, 2008 at 12:07 pm
# Sighburrdood Says: “and is owned “free & clear”.
Grampa, at your age, you’d better own it “free & clear”
May 12th, 2008 at 12:11 pm
Sighburrdood,
Didn’t you buy your first home during the Civil War?
Hopefully you own that one “free & clear”
May 12th, 2008 at 12:22 pm
so 99.9% of us can’t afford this home, who cares atleast have some fun with it….
1st TD is $18.0m.
New owner’s tax billing address on 411 Avocado goes to the same person who was the listing agent on 411.
Hrrrmm….what’s that all about??? do we have a flipper?? haha!!
5 bucks says the home gets re-listed next year for $50.0m lol
May 12th, 2008 at 1:03 pm
Bubblehead:
You wrote “I don’t have any intention to have them as my friends. Unlike you, I don’t pick my friends based on how much money they have.”
You got me! That’s how I pick my friends. In fact, all of us who live in 92804 live here and hang with one another because we are all so wealthy.
I may not have a CDM address to boast about, but I DO have friends as neighbors. In fact, there was a gathering in a neighbor’s backyard yesterday for all of the moms…mostly Thai and Cambodian. We had a great time, enjoying some of the best curry rice and eggrolls on the planet. Kids of all colors played well with one another…better than posters here play in this virtual sandbox.
So yes, it sounds like it IS lonely at the top for a technology guru such as you. Bummer for you.
May 12th, 2008 at 1:14 pm
Anonymouse: I’m sorry to hear you live in 92804.
I don’t even know what your point is. I guess, hanging out with the housing permabulls has damaged your brain.
Hey, when I want Thai food, I go to Royal Thai in Newport.
I highly recommend it.
http://www.royalthaicuisine.com/Location.html
You should try it sometime.
We went there yesterday for Mother’s day. They have the best “coconut soup”
May 12th, 2008 at 1:23 pm
I like that Thai place in Orange
May 12th, 2008 at 1:31 pm
bosqwerty:
where is that thai place in orange?
May 12th, 2008 at 1:33 pm
Maybe I should be more trusting, but I have a hard time believing Bubble lives in Newport Beach when his “get richer” plan is to get people to click on his web site. I think Bubble was counting on buying this house for 500K.
May 12th, 2008 at 1:41 pm
Crystal Balls :
That is your problem if you think that everybody who lives in NB is a multimillionaire. You should get out more often.
As most people here know, my blog is just a hobby and I have a real job (unlike granpa Sighburrdood) as a software engineer.
May 12th, 2008 at 2:02 pm
everyone in the OC is a multi-millionaire….
oh wait
never mind
houses stopped going up in value, and the banks stopped writing 2nd income check (aka heloc loans)….. no more free lunch
May 12th, 2008 at 2:08 pm
NationalBubble had this to say: “my blog is just a hobby
If it was such a hobby, why is it that you’re usually the first one to post a response on a new thread? Let me know your bosses phone number so I can check to see if he approves of your extracurricular activities “at work.”
Also, MOST of us don’t have hobbies that make our house payments, like yours does. ( Or perhaps you donate ALL the proceeds from the sales off your website, to charity? )
and I have a real job (unlike granpa Sighburrdood) Yup, Whippersnapper, I’m proud to be a granmpa - I can’t imagine why that’s something you feel a need to criticize.
As for having a real job, I worked for over 45 years to get to where I am now, not really retired, as my rental properties keep me pretty busy. Yes, I COULD turn over the management to an outsider, but the work keeps me off the streets, and gives me lots of things to teach to, and pass on to, my kids and my grand kids.
What are YOU passing onto yours, Mr. Doom & Gloom?
May 12th, 2008 at 2:25 pm
You’re right Bubble. Newport Beach has a lot of wannabees, too. I guess you are one of them.
May 12th, 2008 at 2:35 pm
“Yet more evidence that the coastal areas are holding up.”
You got to be kidding, right?
This home and others in the $3M+ category aren’t representative of the broader Coastal RE market. There are many homes along the coast that are valued in the in the $700k - $2M price range. I see more NOD and NTS activity in that Coastal market than during the previous years. Is it a significant amount of NOD and NTS to cause a downturn like what we’ve witnessed in the subprime market? Not yet. But the increase in NOD and NTS momentum near the Coast, in combination with the increase in inventory, increase in marketing, and the decrease in sales volume could very well indicate that prices are depreciating in the Coastal areas. There are several homes listed near their 2004 prices and they don’t move. I think that the depreciation of RE near the Coast already took place, it’s just that the lack of transactions doesn’t reflect the deflating home price trend, yet.
I predict that within the next 6-18 months it will become obvious that the Coastal areas aren’t immune from this bear market and financial institutions will notice how defaults spread into their “Alt-A” and “A” paper portfolios.
May 12th, 2008 at 2:44 pm
Sighburrdood Says: “I worked for over 45 years to get to where I am now, ”
You worked over 45 years to spend the whole day posting messages on this blog and trying to convince people that the bottom is here?
If you have so much equity in your South county homes, why do you worry so much about the housing downturn? You should actually want home prices to go down so you can buy more homely houses in South county.
Don’t you have anything better to do with your time?
At least, I’m working at the same time and getting paid for, while posting messages here. And also, I’m not even close to being as rich as you claim to be.
I don’t know, but if I were in my 60s or 70s with all the money you claim to have, I’d not waste my precious time posting messages here. There is a whole world out there and it is beautiful. But then again, this is a free country so you can do whatever you want.
May 12th, 2008 at 3:04 pm
I doubt NationalBubble.com is a “software engineer” (or at least a good one). His website reflects a low standard of quality.
May 12th, 2008 at 3:05 pm
nat bubble, that’s another funny one from the permafools…..
claiming the bears are flippers? LMAO…….
flippers want the market to keeping go up and never stop going up, they don’t care………. prices to the moon…..keep flipp’n keep the good time rolling…. LOL…..
sighburdood clearly is worried about prices falling….. if he was who he said he was…. he’d want prices to crash…….. to get to the investment point again….
May 12th, 2008 at 3:10 pm
# Thoughtful Says: “I doubt NationalBubble.com is a “software engineer” (or at least a good one). His website reflects a low standard of quality.”
well, it doesn’t matter. As long as I get paid by my employer, I couldn’t care less what you thing.
And thanks for linking to my site, I appreciate the extra traffic.
May 12th, 2008 at 3:23 pm
If it is a bubble, then recall that the last phase after price collapse is the very long period where prices never come back to hysterical levels.
May 12th, 2008 at 3:50 pm
What really matters:
A) Comp Killers are now all over Orange County, driving down the price of real estate that was once driven up by one’s ability to borrow, instead of one’s ability to repay.
B) PermaBulls are now in complete denial, and still believe the banks and/or the gubernment will reestablish the Ponzi Scheme.
C) So called professionals like, Gary Watts, have been completely discredited.
D) Homeownership is being returned back to a conditional right that is EARNED, instead of an entitlement that was perverted by riverboat gamblers, irresponsible home debtors, carnival barkers and latte drinking bimbos.
May 12th, 2008 at 4:01 pm
love the beach in OC……
$28,000,000.00 for prime CDM home………………………………..
Ya they bought this one on a NEG AM……………..lol…………………
You bears are crazy if you think the Nicholas Cages / Herbst Family
Are going broke in this recession…
Its the wanabee new money in Telega / Ladera / I E / going broke…….
These guys have to make the tough decission of ……………………..
Should I take my 100′ Yacht for a sail……………………..
Or
Take my porsche spyder for a cruise down pch………..
May 12th, 2008 at 4:22 pm
sorry for the delay in response, the Thai restaurant I’m thinking of is called Bebe’s Cafe, 1432 N. Main in Orange (Main & Katella) it is in the same building as OC Badminton Club.
only open Monday - Friday for Lunch & Dinner. very reasonable prices and very tasty.
May 12th, 2008 at 4:31 pm
bpsqwerty,
Thanks–a solid tip we can all agree on. Hopefully
We’re still in the cross currents of what could be a turning market but more likely is a springtime uptick in a road that hasn’t hit the bottom yet.
We are, however, seeing more positive signs than I expected, and I do believe at least one bottom is now behind us. (See today’s “Snapshot from the front lines: One bottom, maybe two.”)
Regardless, we now know where to get good Thai in Orange.
May 12th, 2008 at 4:39 pm
RealtorDave - What would you say is the % of properties in escrow that actually make it all the way to closing?
I ask because short sale/REO homes in some areas I’m watching easily outnumber “regular” sales (these are virtually all owners who bought 2003 or earlier and have equity) by a fairly good margin. Many of them don’t seem to have any realistic chance at gaining lender approval considering things like the $ amount of loss.
May 12th, 2008 at 4:58 pm
Historically, homeowners have never thought of real estate as an “investment” because for the most part, it never paid off when they sold it 10-15 years later. Only recently has homeownership resulted in huge windfalls upon the sale of your home, but from the 50’s through the 80’s, homeownership in itself was a terrible investment, just barely keeping up with inflation. Throw in the insanely high interest rates of the pre-1980’s and you have a recipe for a bad investment.
Now, buying real estate as an income producing venture is a whole other beast because you buy based on the “cap rate” not some voodoo perceived sense of value that appraisers magically declare. You look at the income and expenses and say I want an 8% cap rate and boom the value is what it is. From there, you can raise and lower rent based on the economy and if the economy is doing well, your rents reflect it.
May 12th, 2008 at 5:06 pm
Jon Lansner/O.C. Register columnist will do anything to pull his head out of his “A”, including an artice about a home that has absolutely nothing to do with the actual prices of homes! Who cares what this house sells for? It is not an indication of what is happening in real estate anymore than the “real estate experts” that the idiot Lasner quotes! The markets in the toilet because of “greed” Jon - get it? The property was really worth that much -Jon - Get it? What does it take “Jon”? How many stupid “Mea Culas?”
May 12th, 2008 at 5:49 pm
Happy days are here again
The skies above are clear again
So let’s sing a song of cheer again
Happy days are here again
Altogether shout it now
There’s no one
Who can doubt it now
So let’s tell the world about it now
Happy days are here again
May 12th, 2008 at 5:59 pm
DonS, your post is so funny….. i wish you understood how funny your post was when you were writing it
“Happy Days are Here Again” is a song that came out in 1929/30 in the midst of a bear rally after the great crash………….. then it was used by FDR…. but the Great Depression rolled on…… and hit songs like “Brother Can you Spare a Dime” took it’s place…….
it’s also probably funny to me because the democratic party uses that song now and again……… to post it on the ultra-republican OC register is very funny (not saying anything political here… just funny)
funny post., DonS
May 12th, 2008 at 6:41 pm
Just so you know, this house has been on the market for over two years (possibly three). It’s about this house sold.
May 12th, 2008 at 8:20 pm
I heard it was a straw buyer. His name was “Jose” and he purchased it with a NO DOC “exotic” loan with 100% financing. Oh yeah, he is a cook at Denny’s.
May 12th, 2008 at 9:09 pm
I was going to buy this place for my dog, but I decided it was too cramped.
May 12th, 2008 at 9:48 pm
NationalBubble Bath, the Doom & Gloom guru, had this to post: “you spend the whole day posting messages on this blog and trying to convince people that the bottom is here?”
Guess you haven’t been paying attention NB. First of all, I disappear for days at a time, when I AM busy with life. When I reappear, every thing is still the same, kind of like a soap opera. I spend a little while checking posts and responding to some, or creating some of my own, when I find good news that kicks the butt of your incessant negative posts.
As for “trying to convince someone”, that hasn’t been my style - I post what I feel is valid. I talk about things that I would do, and have done. If people don’t want to accept my opinions, I’m not out to persuade them, and I CERTAINLY don’t have a profit motive, like you have.
Perhaps I should look into creating a POSITVE blog - its timing might be due.
May 12th, 2008 at 10:42 pm
And if you really believed your own BS Sigh, you’d attach you name to that blog, right?
May 12th, 2008 at 11:09 pm
It is listed as ACTIVE LEASE for $55,000 per month….
date 04/29/2008
They owe $17,600,000.00
May 13th, 2008 at 6:19 am
A different opinion does not make it BS. It just makes it his opinion. Like my opinion that is clearly a fact: so many renters here it is transparent.
May 13th, 2008 at 6:47 am
LIBOR Correction for ARM rates?
LMAO…. not in the OC…. LOL
http://calculatedrisk.blogspot.com/2008/05/libor-correction-coming.html
“May 13 (Bloomberg) — The benchmark interest rate for $62 trillion of credit derivatives and mortgages for 6 million U.S. homeowners faces its biggest shakeup in a decade as lawmakers question if banks are understating borrowing costs.
For the first time since 1998, the British Bankers’ Association is considering changing the way it sets the London interbank offered rate, according to Chief Executive Officer Angela Knight, who appeared before a parliamentary committee in London today.
For your information, the vast majority of subprime and Alt-A hybrid ARMs–plus a significant number of prime hybrid ARMs–are indexed to the 6-month LIBOR.”
May 13th, 2008 at 6:54 am
This is an anomaly. Why is there even a discussion?
May 13th, 2008 at 7:11 am
Ooooohhhh nooooooo! LIBOR bumped up 18 basis points after PLUMETTING 300 + basis points. Face it, the reset problem is nearly over.
May 13th, 2008 at 7:18 am
LOL thoughtful that’s funny….. you think it’s over…… i’d say it’s just begun……. you still don’t get how risk gets priced in after the fact in credit bubbles…… once you know it’s a pig….. that’s when the problems begin…….. the lipstick only works when investors think it’s not a pig
May 13th, 2008 at 7:22 am
mav
forget the RE blog quagmire. Let’s have some more music history.
That’s what I like about you.
May 13th, 2008 at 7:24 am
18 basis points there……… an extra dollar per gallon of gas here
a billion dollar bank write down here…… a billion dollar bank write down there….
May 13th, 2008 at 7:27 am
Really, what’s a billion these days? Honestly, it’s just a blip on the P&L sheet.
May 13th, 2008 at 7:31 am
VOR, that’s what I’m saying….. no big deal………
here you go VOR, here’s a hit song for you:
http://youtube.com/watch?v=nVEoxgdJ-8g
May 13th, 2008 at 7:38 am
mav,
nice hat.
May 15th, 2008 at 9:34 am
[…] Beach bayfront mansion listed for $38.5 millionHistoric home becomes O.C.’s 4th priciest saleO.C. price record set for off-water home: $27.125 millionReal estate skeptic helps stop Michael Jackson ranch foreclosureLate April’s homebuying dip […]
May 15th, 2008 at 9:36 am
[…] Beach bayfront mansion listed for $38.5 millionHistoric home becomes O.C.’s 4th priciest saleO.C. price record set for off-water home: $27.125 millionReal estate skeptic helps stop Michael Jackson ranch foreclosureLate April’s homebuying dip […]
May 15th, 2008 at 2:14 pm
deceased feline bounces are in play. when it anything falls from that hieght, it takes some bounces when it hits, and everything is