With prices for residential real estate hitting and then exceeding $250 million, stratosphere was the word often used in recent years to characterize the pinnacle of the market. This year, prices for the most expensive in the U.S. are holding steady, perhaps moderating slightly (Refer here for last year’s lists). With the ultimate price remaining at $500 million and the lowest of the top 10 at $135 million, down from 2018’s $138.8 million, it would seem “holding steady” would be an appropriate sobriquet this year. 

When the first edition of Ultimate Homes was published 14 years ago, the highest-priced property in the U.S., an extensive estate in the Hamptons with a huge array of amenities including a golf course, was $75 million. The prospect of a $100 million home was denitely on the horizon, but anything nearing a billion was not even on the radar. Yet, for the last two years, the reported asking price for a mega mansion touted as “the most expensive home in America,” has been $500 million; the lowest price among the top 10 exceeded $100 million for the last four years. Geographically, Ultimate stars have appeared in many of the country’s top luxury locales. Recent years have seen a move toward the West with L.A.’s million-dollar meccas dominating the top group. Timeless blue chip estates, many with extensive pedigrees including notable architects, owners and visitors, comprised most of the top 10 in the initial years.

Billion-Dollar Building Lot?

Undeveloped land without a house does not qualify for the Ultimate list, but it’s worth noting that last summer a $1 billion listing was posted in the multiple listing service for a 157-acre mountaintop spread in Beverly Hills. Since then, the price has been reduced by 35 percent to $650 million. Also, not on the Ultimate list is a $150 million parcel, One Enchanted Hill, that was the estate of Paul Allen, also in Beverly Hills. The property has many improvements including roads and two entrances, but the main house was razed.

Many see prospects for the premier market, particularly in L.A., as positive. Three years ago, Gary Gold with Hilton & Hyland sold the Playboy Mansion for $100 million, a record at the time for Los Angeles county. “Ever since then, we’ve seen more really big sales than ever before,” he observes. “The reason I think the ultra-luxury market is going to do well this year is there happens to be product worthy of big numbers. If there is no product available, nothing is going to trade, just because there’s nothing available. And there happens to be enough really nice, expensive big houses that are going to trade.”

Over the last 10 years, wealth globally has had a remarkable surge. Stephanie Anton sees growth in the number of ultra wealthy as a driver pushing the evolution of luxury, particularly in the highest-priced echelons. As buyer profi les evolved, luxe penthouses in new super towers along with newly constructed mega mansions created new residential categories and pushed prices upward. Properties with provenance such as Chartwell and Beverly House, along with classic estates, still have a place among best of the best. The “ultimate trophy and legend cherished for generations” is the way Beverly Hills broker Jade Mills characterizes Chartwell, a Bel Air legend designed by Summer Spaulding in 1930. A French Neo Classical exterior comprised of symmetrical cut limestone imparts a timeless presence. Henri Samuel, whose work includes estates owned by the Vanderbilts, Rothschilds and Valentino, refurbished the interior in the late 1980s. Located in the heart of Bel Air, Chartwell sits on 10.3 acres and is often described as the crown jewel of
Bel Air. 

The property also includes a guesthouse designed by Wallace Neff and acres of manicured gardens. Multiple agents including Jeff Hyland and Gary Gold of Hilton & Hyland; Joyce Rey, Jade Mills and Alexandra Allen with Coldwell Banker Residential Brokerage; and Drew Gitlin with Berkshire Hathaway Home Services California Properties are representing the property. “Chartwell certainly ranks as one of the most prestigious and beautiful properties I have ever represented. Additionally, the acreage is most unusual with four separate parcels and the exceptional panoramic views of downtown Los Angeles and the Pacific,” comments Rey. This property would appeal to a very specific buyer, explains Jeff Hyland, “one who has class, sophistication and taste.” 

Prime Assets

Steller architecture along with extensive and amazing amenities are a prerequisite for every top property. They add value and promote an over-the-top lifestyle, but architecture and amenities alone will not merit prices at the very top. Where they are located still matters and almost every property this year has a prime address. 

“Location is still a top consideration for potential buyers,” says Rey. Also important for long-term value, according to Rey, is the land. Just five minutes from the Beverly Hills Hotel, with over seven acres, Villa Firenze is the largest single property in Beverly Park, the largest collection of single-family mansions to be built in the U.S. in the last 50 years. With its own street, the property is its own Italianate village and includes two guest houses in additional to a 20,000-square-foot mansion. 

Villa Firenze, Beverly Hills, California. Photo courtesy of Tyler Hogan. 

Irreplaceable

In nearby Manalapan, a 15-acre estate dubbed Gemini offers approximately 1,200 feet of dune-lined beach on the Atlantic and 1,300 feet on Lake Worth. A series of tunnels, including one that is a 15-foot-wide gallery, connects the two. The site, perched on top of a dune, offers 360-degree views, yet it’s only minutes to Worth Avenue in Palm Beach. In addition to the main house, it offers two, four-bedroom beachside cottages, a seven-bedroom house, and an additional staff or guesthouse, making it a true family compound with more than 30 bedrooms. Like Gemini, many Ultimate properties would be diffi cult to replicate. Agents call them “once-in-a-lifetime opportunities.” Mesa Vista, a massive ranch in East Texas, is another such property. Billionaire Boone Pickens has devoted more than 50 years to transform this 100-square-mile expanse of Texas panhandle into an unmatched oasis and wildlife habitat.

Improvements include 20 lakes over the course of 20 miles. In addition to a 12,000-square-foot main lodge, there is a 33,000-square-foot lodge and several other houses, plus housing for staff. The chapel, a site for both weddings and funerals, is stunning, and a 6,000-foot runway and hangar facilitates getting there. The ranch is listed at $250 million.

“It seems impossible to comprehend all of the improvement made to this property, whether it is structural improvements, water enhancements, landscape or wildlife conservation features. To our knowledge, no other ranch can replicate Boone’s Mesa Vista Ranch,” says Monte Lyons, managing director of Hall and Hall, who is representing the property along with Chas. S. Middleton and Son.

Super-Sizing Luxury

In addition to being the most expensive, The One is also one of the largest homes in the country, with an estimated 100,000 square feet. The estate is nearing the end of a half-decade-long construction process, and agents expect completion in the next few months. It also reflects a new bent for ultra properties, particularly in Los Angeles, which takes the term “trophy property” to a completely new level. In addition to expansive views, a huge number of very premium amenities from multiple pools and elevators to garages, these estates include almost everything a newly minted billionaire might want, taking the idea of a turnkey home to a new level. 

Billionaire, once again No. 6 on the Ultimate list, is priced at $150 million after a $38.8 million price reduction. It’s completely furnished, staffed and decked out with a huge array of indulgent features and additions, including more than 100 curated art installations, two stocked wine/champagne cellars, a multi-million dollar collection of cars in a custom design gallery and a 40-seat 4K Dolby Atmos Theater. Unlike custom homes which are designed for an individual buyer, new mega spec homes are geared toward a group of buyers with a great deal of specificity.

What hasn’t changed over the years are the diverse features of every Ultimate home, although what were once perks are now considered a “must-have,” including all of the tech bells and whistles, as well as privacy and state-of-the-art security. Wellness has always been a consideration, but now expands beyond space for gyms, yoga and massage. Priced at $135 million, 2571 Wallingford Drive is located in another prime Beverly Hills location and offers a one-of-a-kind indoor sports complex with basketball, pickleball, gym, a boxing ring, sports bar and outdoor lounging, according to Ginger Glass with Coldwell Banker Residential Brokerage.

Meadow Lane Oceanfront, Southampton, New York. Photo courtesy of Sotheby’s International Realty.

“These are consumers who can afford anything they want, but that is nothing new. Ultra high-net-worth consumers want it all, and they can afford it all,” says Anton. “Today in the ultra premium category, we are seeing demand for a lot of square footage in a beautiful setting, and/or view lots with fabulous outdoor space for entertaining and plenty of room to entertain guests, among other things. People are looking for homes that meet the needs of their busy, over-the-top, social, connected lives, but also for their home to be a safe refuge to get away from it all.”

On three occasions Joyce Rey sold the most expensive home in the nation, establishing multiple benchmarks for price — in 1978 for $4.2 million, 1990 for $19.9 million, and 2010’s $50 million record. Last year, the highest priced sale was a $110 million oceanfront compound in Malibu, which was also the most expensive sale ever in Los Angeles. So far, 2019 could be seen as a record-setting year, with the sale of a $238 million penthouse residence at 220 Central Park South in New York, which was an Ultimate top property last year. The sale set a record for a U.S. residential property. Designed by Robert Stern and located adjacent to Central Park, the building has become one of Manhattan’s most renowned properties. The price is more than impressive and surpasses other records for the U.S., which include a $147 million estate in the Hamptons that sold in 2014 and Copper Beech in Greenwich, which sold for $120 million also in 2014. Both eclipsed previous records, including a Woodside, California, estate that sold for $117.5 million in 2012.

When it comes to indications of what might occur in the future, and even the correct context within which to understand the present market, a look back doesn’t always provide the best insights. Regarding this year’s recent record sale price, appraiser Jonathan Miller cautions in his blog that the price may not be an indication of future trends because the contract was finalized in 2015, at the height of Manhattan’s supertall and super-luxurious building craze. However, Jeffrey Hyland believes there are several good indicators that bode well for future ultra-luxury sales in California. He estimates a large number of IPOs this year. “All these people are going to have so much money they will be looking to dispose of.”

This editorial appeared in the Unique Homes Ultimate ’19 Issue. 

See the Top 12 list here.

OUR EXCLUSIVE GUIDE TO THE MOST EXPENSIVE HOMES FOR SALE IN AMERICA

This is the 15th year the editors of Unique Homes have published Ultimate Homes. Our comprehensive list of every property for sale in the U.S. for at least $25 million starts on page 52 of our recent Ultimate edition, and remains the only of its kind. Below, you will find a list of the top 10 most expensive properties featured on this year’s list — starting with a $500 million estate in Bel Air, California and ending with a $135 million property in Manalapan, Florida.

$150 million
Billionaire
Bel Air, California

$135 million
La Follia
Palm Beach, Florida

Featured photo courtesy of Tyler Hogan

The top property this year is 20 percent more expensive than last year. Experts say wealth creation and an increase of the millionaire class are driving ultra-luxury prices.

By Camilla McLaughlin

Billionaire estate; Photo courtesy Simon Berlyn

Once a seemingly preposterous suggestion, the idea of a billion-dollar house moved much closer to reality this year as more than one property came on the market in the $200 million range. The most expensive has a $250 million price and a very appropriate moniker: Billionaire.

During a broadcast featuring a $10 million Beverly Hills property listed by Joyce Rey, Barbara Walters once quipped, “One day there will be a billion-dollar house.” At the time, even the idea of a $100 million home seemed outrageous. Yet, less than three decades later, there are 10 homes in the U.S. for sale at $100 million or more. More are in the pipeline in California alone, including a supposed $500 million estate under construction in L.A. Entrée to today’s ultra market calls for a net worth in the $500 million bracket, and well over $1 billion for the highest price points.

When the first issue of Ultimate Homes was published in 2005, the top property in the country was a $76 million, 60-acre waterfront estate in Bridgehampton, New York. When research began for the new publication, which set out to document the 850 most expensive homes in the U.S., there was little information about real estate at the highest price points — even marketing information was shared discretely. Just figuring out where to begin, what price point would be the threshold for the 850 was a challenge. In the end, it was $7.8 million. Over the years, we’ve enhanced the process, but still meticulously search properties all over the country. Today, you might see similar lists, but most skim the surface, cherry-picking the most publicized properties. For Ultimate Homes this year, $25 million is the jumping off point for the ultra-high-end.

In 2006, the $100-million mark was broached with a $125 million Palm Beach estate, which eventually sold close to $100 million. Since then, prices have risen incrementally. In recent years, price increases have amped up, with the top Ultimate price doubling from $125 million in 2012 for Fleur de Lys in Holmby Hills, California, to $250 million in five years.

Quite often ultimate prices are characterized as wishful thinking or a publicity grab, but the post-recession rise is also a response to the creation of wealth. “Real estate is not only a good investment, but also a perk of wealth,” says John Brian Losh, publisher of LuxuryRealEstate.com.

The ranks of the ultra wealthy have grown as have prices for art, yachts and other assets. “There was a time when we could tell you all the millionaires and billionaires in the world. That’s our business at Christie’s. Our list now is not quite up to date, because there was a whole slew of new ones created yesterday. And with the great creation of wealth we have had people who can buy whatever they want, and increasingly wealthy people are putting their assets into residential real estate and in commercial real estate,” observes Zachary Wright, executive director, Western Region, Asia Pacific, Christie’s International Real Estate.

In 2014, there were a number of record sales, including an East Hampton estate for $147 million; Copper Beach, a Greenwich, Connecticut, estate for $120 million; and a $100.5 million duplex in New York’s One 57 tower. In the last year, two $100 million deals and another at $90 million shattered records in Los Angeles. The Playboy Mansion, last year’s top Ultimate Home at $200 million, sold for $100 million, as did last year’s No. 4, a new 30,000-square-foot extravaganza built on the site of an estate once owned by Barbara Streisand. Owlwood, a famed Carolwood Drive estate with a storied history that epitomized ultra luxury, sold for $90 million.

La Dune; photo courtesy Harald Grant

Breaking the $100 million threshold is significant, say L.A. brokers. “All you need to do is have one property sell at a stratospheric rate and it pushes the ceiling,” says Paul Boomsma, president of Luxury Portfolio International and COO of LeadingRE.

“The sky is the limit. Once we hit the $100 million mark, we broke the glass ceiling — and we’re seeing people comfortable with spending more than that,” says Rick Hilton, chairman and co-founder of the Beverly Hills firm Hilton & Hyland.

The impact of these sales extends beyond the West Coast. “They’ve boosted the market in the U.S. with the sale of the Playboy Mansion. It will reflect back to our marketplace. L.A. is a larger marketplace, but people love Florida,” observes Carmen D’Angelo, co-owner of Premier Estate Properties in Palm Beach. This year, more uber buyers are looking north of Miami. “A lot of property on the oceanfront has been selling well this year,” says D’Angelo, noting record sales on Hillsboro Mile. When it comes to estate properties, he says, the market begins at Fort Lauderdale and extends up the coast.

Two waterfront properties in Florida are once again Ultimate stars. Gemini is an ocean-to-Intracoastal compound in Manalapan, Florida. Loggias, and open stairway and balconies open the main residence to acres of gardens. This property might not be an island, but with water on two sides, including more than 1,000 feet of beachfront, the sense of serenity and privacy that accompanies an island is here.

When Joyce Rey, executive director of Global Luxury for Coldwell Banker Real Estate, and Stacy Gottula initially listed Palazzo di Amore in 2015, there were no comparable homes to reference value. “We hadn’t had a $100 million sale at the time,” says Gottula, who joined The Agency in 2016. And there weren’t any estates on 25 acres. The property initially came on the market at $195 million, with an eventual price reduction. After a year off the market, Palazzo di Amore is back on at $129 million, a price Gottula says is very competitive, particularly considering last year’s record sales. “We are priced to sell in a great marketplace to sell this estate,” she says.

Few agents have set more price records than Joyce Rey, who, along with Gottula, sold the highest priced property in the nation in 2010 for Le Belvedere, a Bel Air estate that upped the ante for Ultimate properties offering exceptional privacy, unheard of amenities such as a Turkish hammam, and a 280-degree city view. Rey and Gottula are teaming up once again to market Le Belvedere, which is back on the market at $85 million.

Prices for Ultimate properties in L.A. might seem astronomical, but compared to many global cities, they are a bargain. “On a square-foot basis, Los Angeles offers far greater value for money than competing cities across the globe,” comments Hilton, who is listing The Manor for $200 million. A few years ago, this much publicized property headed the Ultimate list. Now, the new owner has it back on the market after extensive updates. Still, the essential character of the estate is very much in place, but some rooms have been refocused for current preferences and the new interior is stunning. One of the largest homes in the country, its square footage surpasses the White House.

The $250 million price isn’t the only facet of Billionaire that generates attention. Newly constructed, it is among a growing number of lavish estates built on speculation. “In 2016, expensive spec homes dominated the highest end of the Los Angeles luxury market, comprising six of the 10 priciest transactions. In this rapidly expanding market, spec homes today are like nothing we have seen nor could have imagined,” says Jeff Hyland, president of Hilton & Hyland. Rather than the entire luxury market, developers are focused on the limited number of very wealthy individuals worldwide. “With a specific luxury buyer in mind, developers are taking custom building to new heights — and these properties are in demand. Between the valuable land they’re often built on and high-end finishes that cater to an elite individual, spec homes have proven to be ideal in their turnkey nature,” says Hyland, hitting on the one thing buyers in all price brackets want today — turnkey.

Billionaire could be viewed as the ultimate turnkey property. Orchestrated by luxury developer Bruce Makowsky, it is completely furnished, staffed and decked out with unparalleled amenities and features, including more than 100 curated art installations, two stocked wine cellars, and a $30 million collection of cars in a custom display gallery. Compare this to 20 years ago, when a Ferrari might be offered as an incentive and a way to boost value. Clearly, for new properties the amenities wars are on, with an ever-expanding amount of square footage devoted to entertainment, and over-the-top features. Bowling alleys are a must, as are outdoor movie venues, multiple pools, bars and extensive gym and work-out space.

Palazzo di Amore; photo courtesy Marc Angeles

Also changing is what the very wealthy look for in a home. Until recently, our top list was divided between estates on sizable pieces of land and condos in Manhattan that captured acres of real estate in their views. Today, nine of the top 10 are individual estates. Almost all in this group — as well as a number in lower price brackets — are as much a private resort as they are a home. “People want their own paradise now. They want their own tropical resorts,” says Wright.

In this way, newly constructed mega properties are very much like legendary estates that set standards for a lifestyle developers strive to recreate today. “Many of these homes were designed for large-scale entertaining, and to create ‘experiences’ for family and friends. Look back to what William Randolph Hearst set out to create, or the mansions that were built in Newport. At the time, those homes were also completely off the charts. We see history repeating itself, as many of these homes are also used only a portion of the year and are also often for entertaining on a very grand scale,” observes Boomsma.

Each of the historic estates that are this year’s Ultimate stars has a unique story and provenance. The one condominium residence, and only Manhattan property, among the top 10 is the penthouse in the Woolworth Building, which was built as the tallest building in the world and remains one of Manhattan’s striking icons. Under the baton of French designer Thierry Despont, the top 30 floors have been reimagined as individual residences. Original architectural details have been elevated with refined cabinetry and finishes and 15-foot ceilings. Capping the building is a seven-story penthouse priced at $110 million.

Owned by just three families in its 80-year history, Briar Patch, an 11-acre compound on Georgica Pond in East Hampton is on the National Register of Historic Places, a first for the Ultimate top 10. Two residences, including the Georgian Revival, 6-bedroom, 10,000-square-foot main house, were painstakingly restored and renovated over two-and-a-half years by the internationally renowned architect Peter Marino.

“La Dune” on Gin Lane in Southampton dates back to 1900 and has links to architect Stanford White. The almost 4-acre property has two extraordinary residences, multiple pools and 400 feet of bulkhead beach front. Rosa rugosa blooms slope down to a wide sandy beach in front of the Shingle-style, four-story main residence. The second residence, a wholly separate guesthouse, emulates the style of the main house. Amenities are extensive, including billiards and a theater.

Few estates compare to the architectural heritage of Il Palmetto, a 5.46-acre, ocean-to-lake Palm Beach estate. Notable architect Maurice Fatio built the Italian Renaissance-style villa that is the centerpiece of the property. The main residence is designed as a series of pavilions connected by cloisters. The property also has a second house located on the beach. Like Gemini, an underground tunnel connects both parts of the property, which also fronts on Lake Worth.

It’s important not to lose sight of the fundamental principal of real estate. In the end, says Losh, the market sets the prices. And how the market will react to current prices has yet to be realized.

The Manor; photo courtesy Hilton & Hyland

This story originally appeared in Unique Homes Ultimate ’17. Click here to see the digital version.

Our exclusive guide to the most expensive homes for sale in America

This is the 13th year the editors of Unique Homes have published Ultimate Homes. Our comprehensive list of every property for sale in the U.S. for at least $25 million starts on page 44 of our recent Ultimate edition, and remains the only of its kind. Below, you will find a list of the top 10 most expensive properties featured on this year’s list — starting with a $250 million estate in Bel Air, California and ending with a $100 million home in Southampton, New York.

Explore the 2017 Ultimate list here!

This story originally appeared in Unique Homes Ultimate ’17. Click here to see the digital version.