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Contact: Spencer Castillo Office: 310.664.8843 Email: spencer@candrpr.com
Saturday 2 September / Sunday 3 September 2017
Waterside Living Special Tribute to Tang ‘Loud, obstreperous, ooutrageous’
Follow the lei lines Hawaii’s oceanfront homes are in short supply
Tinted love Designers embrace a spectrum of colour
SSTEPHEN FRY PAGE 2
US PROPERTY PAGE 3
INTERIORS PAGE 20
The h Th home of prime property: propertylistings.ft.com
Follow us on Twitter @FTProperty
Water, water, everywhere The low-lying Netherlands has long put up defences against flooding. Now a ground-shifting plan to cover areas with sand dunes to create higher land could be the solution. By Sophie Knight
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hen the Dutch have doubts about water, it’s time to worry. The Netherlands has been the champion of water management for centuries, battling to keep its low-lying landmass dry. But as extreme weather events — such as Houston’s catastrophic flooding in the wake of Tropical Storm Harvey — and high temperatures outstrip even the most pessimistic predictions, some argue that even the most sophisticated dikes won’t be enough. One of those raising the alarm is Rotterdam-based architectural studio ZUS, which has developed “Delta 3000”, a plan to transform the lowlands into a hilly sandy landscape. Covering the country in sand would prevent flooding, produce fresh water and create a naturally sustaining ecological system — which ZUS argues is better than the current cost and energy-intensive defence plan against the rising sea. The
The climate change debate has provoked a paradigm shift in landscape design Netherlands uses a maintenanceintensive system of seawalls, dams, dikes, sluices, pumps and locks to protect the 55 per cent of the country prone to flooding. The government plans to update this system to combat the increased risk of flooding and reduced freshwater availability that they expect to come with climate change. “[The current system is] artificial and is completely dependent on human intervention and technical adjustments,” says Kristian Koreman, one of the co-founders of ZUS along with Elma van Boxel. “Whereas with the dunes, finally you’re safe: you’re building higher ground.” The climate change debate has provoked a paradigm shift in landscape design due to the uncertainties it brings with it. Forced to abandon the notion that nature can be dominated,
Aerial view of Naarden, a fortified town in the Netherlands that embodies the traditional Dutch defensive approach to water management — Hans Blossey/Getty Images
Existing
North Sea
NETHERLANDS Sea level rise
FLEVOLAND VO VOLAND O D
Amsterd daam da m
Sea level 2070
Alm A mere mer m ere re
Current ground level Soil subsidence
1 Groundwater has been increasingly drained for years to prevent flooding, causing subsidence
The Th T he Hag H Hague aag guuuee g Rot Rotterd Rotterdam R o te terrd rdam dam GERMANY
Planned
(Delta 3000)
New ground level +~6m–10m
3 Sand layer to be added
How it works 4 Surface water filters through sand to form Europe’s largest aquifer, which would provide freshwater, as well as pushing the saltwater layer down
FT graphic: Liz Faunce
architects are now seeking to work with nature rather than against it, resurrecting ailing ecosystems or creating new ones to adapt to the future climate. “We used to assume that we could predict and control nature. That was the
Freshwater aquifer
2 A rising sea would increase pressure on the layer of saltwater deep below the soil, causing it to rise up further, worsening soil condition FT graphic: Graham Parrish Source: ZUS
basis of the big infrastructural projects in the developed world, and the Netherlands is one of the frontrunners,” says Chris Zevenbergen, who leads the Flood Resilience Chair Group at Unesco-IHE in Delft. “But when the system fails, there’s a complete disaster.” Last year, scientists from the University of Massachusetts and Pennsylvania State University published a paper in the journal Nature saying that the sea could rise 2 metres by 2100 due to ice melting in Antarctica, doubling a previous consensus figure based solely on the melting of mountain glaciers and the expansion of the sea as it warms. The Dutch government acknowledges a worst-case estimate from the Royal Netherlands Meteorological Institute of an 80cm rise by 2085. It has already Continued on page 22
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FTWeekend
House Home Hawaii property The scarcity of oceanfront homes or undeveloped coastline plots has sent prices rising sharply. By Kevin Brass
i / B UYI N G GU ID E There is little rainfall on the west side of the Big Island, where these resorts are located, but the east side of the island has some of the highest rainfall averages in the US The Department of the Interior has divided the island into lava flow hazard zones, ranked on degree of danger. On a scale of 1 to 9, with 1 the most hazardous, the Hualalai area is ranked as a 4
H
ualalai Resort sales director Rob Kildow laughs when asked about the availability of oceanfront homes in the development, which covers 850 acres on the north-west coast of Hawaii’s Big Island. “I could sell oceanfront homes for $35m to $40m, but they never come on the market,” he says. “I have a bucketful of people ready to write a cheque.” A home on the oceanfront is a hot commodity in the gated golf course communities that have made this stretch of lava rock and palm trees one of the most expensive areas in the US. Vacant lots on the Kona coastline typically sell for $2m to $10m in the developments, where holiday homeowners include hedge fund manager Ken Griffin, Starbucks chief executive Howard Schultz and GoDaddy founder Bob Parsons. The 450-acre Kohanaiki development, the newest on the coastline, is promoted as “an invitation-only private club community”. Opened in 2013 around a Rees Jones-designed golf course, prices range from $3m to $22m and membership in the Kohanaiki’s club requires a $150,000 entrance fee and $25,000 in annual dues. Kohanaiki has a bowling alley in the club house, a cinema and a “state of the art brewing facility” — but it doesn’t have property available directly on the waterfront, says local broker Steve Hur-
The Kona International Airport has direct flights from many cities on the US west coast Property contracts often include warnings about the possibility of “VOG,” a form of volcanic pollution
What you can buy for . . . $1m Three-bedroom house with ocean views $5m Four-bedroom house, with an infinity pool, on the golf course $10m Seven bedrooms with sunset views and the “opportunity” to join a private club More homes at propertylistings.ft.com
A beach at the Four Seasons Hotel Hualalai on the Kona Kohala Coast, Hawaii — George Rose/Getty Images
A shore thing Seven-bedroom oceanfront estate, Puako, $24.5m — Jonathan Davis Real Estate Photography
witz, a principal of Mauna Kea Realty. There is simply not much coastal land available for development on the Big Island — formally known as the island of Hawaii. Most of the land is protected by local government and several sections are listed as high-risk zones from lava flows from the island’s volcanoes. “A lot of the coastline isn’t that desirable to build a house on,” says local broker Eileen Lacerte, owner of Hawaii Beach & Golf Properties. There are plenty of homes with ocean views, she says, “but it’s not toes in the water oceanfront. That’s harder to find.” There are fewer than 300 properties directly on the water in the area north of Kona airport, Hurwitz says. And only about 150 of those are in the coveted gated communities. Hurwitz’s company is marketing a 7.45-acre oceanfront estate for $24.5m. The sale includes a 10,000 sq ft, seven-
bedroom house, 1,000ft of frontage and the rights to subdivide the land into 10 separate properties. Competition for oceanfront property within the gated communities has sent prices rising sharply. A house directly on the water can sell for two or three times as much as a similar property 500ft inland. Last year, a 3.3-acre undeveloped plot with 240ft of water frontage in the Kukio Golf and Beach Club sold for $20m. A nearby 2.35-acre site with 260ft of ocean frontage, is on the market for $22m. The lofty prices are a sharp contrast to a few years ago, when prices fell more than 30 per cent in the wake of the 2008 financial crisis. Considered more remote and expensive than other islands, the Big Island has historically struggled in the competition for second home buyers.
Yet sales and pricing have been increasing rapidly. The median sales price on the north Kona coast rose to $611,000 in the first half of 2017, up from $386,000 in 2012, according to the Hawaii Information Service. When people do get into one of these PACIFIC OCEAN
Kukio Bay Hualalai Resort KONA DISTRICT Hualalai volcano
US
KailuaKona
Island of Hawaii
Hookena
20km
resorts, they tend to stay put. In the Four Seasons Hualalai, which opened in the 1990s, about a third of the current buyers already own a property there, Kildow says. Morgan Stanley executive Thomas Windler and his wife, Diane, recently moved up from a villa to a hillside 3,700 sq ft house, priced at $5.1m. “We settled on the Big Island because I’m a big golfer,” says Windler. The Big Island is a “lot less crowded” than Maui, he says. At the moment, there is no property directly on the water available in Hualalai, Kildow says. The last sale of a “true waterfront” home in the development was in the down market of 2009 for $26.25m, he says. Luxury Big Island by Harold Clarke, an estate agency, is marketing a threebedroom house off the water — but very close to it — for $15.75m. It was last sold in 2005 for $9.625m. At 3,343 sq ft, the home is “cosy” by neighbourhood standards, according to agency owner Harold Clarke, but you “can hear the ocean, smell the ocean”, he says. “We’re talking about a very wealthy crowd,” Clarke says. “They don’t want to compromise.”
November 2016
Eddie Redmayne Believes in magic
Light Show
Searching for the northern lights from Sweden’s Icehotel
The Good Life
How Tony Bennett got his start
Grudge Match
The biggest college football rivalries, ranked
My Second Home
Jackson, Wyoming 15280 S. Wagon Road
For the select few who crave the isolation of the woods for a party of one, kudos. For the rest of us, this 3,000-square-foot luxury cabin, complete with four bedrooms, 4.5 bathrooms, and 20-foot vaulted ceilings, is nothing short of the ultimate clubhouse for family, friends, and friends of friends. Located on the second fairway of the Snake River Sporting Club, the cottage’s open floor plan is circled by nearly 750 feet of exterior decks that offer a killer backdrop of Bradley Mountain. $2,450,000, snakeriversportingclub.com
Indoor and outdoor living are one and the same at this Hawaiian paradise HIDEAWAY+IN+HAWAII+
Hualālai Resort, Hawaii 72-122 Hainoa Place
The Basics: Looking for a private getaway on the Big Island? This four-bedroom condo overlooks the rugged lava fields that line the Kona Kohala Coast. The airy floor plan is designed to mesh with the lush island surroundings just outside: Massive 24-foot sliding doors lead from the main room onto a large lanai, the covered terrace popular in Hawaiian architecture. After sun salutations on the shaded patio, dive into the infinity pool for morning laps. The Extras: Odds are the whole family will want in on your new island life. A separate media room can distract the brood, while a detached guesthouse can accommodate those extended !!" " November 201 6
stays by the in-laws. When it’s time for the gang to get together, hold an evening cookout on the open lawn, where you can watch fiery ocean sunsets reflect off the pool. The Lifestyle: Hualālai Resort embraces the Big Island’s lush flora, eschewing overdevelopment for open spaces and intoxicating views. In other words, from where this property sits—on the first fairway of the Ke’olu Golf Course, named one of the top four courses in Hawaii—the idyllic view is a permanent offering. If you must make contact with civilization, the members’ only Mauka Clubhouse, just a short walk away, offers the finest Mediterranean and coastal dishes in the region. $4,575,000, hualalairealty.com
UNITED+OFFERS+YEARROUND+FLIGHTS+TO+HILO+ FROM+LOS+ANGELES+AND+ TO+KONA+FROM+BOTH+ LOS+ANGELES+AND+SAN+ FRANCISCO﹐+PLUS+ SEASONAL+SERVICE+TO+ KONA+FROM+DENVER﹒+ GO+TO+UNITED﹒COM+TO+ PLAN+YOUR+ESCAPE﹒
Las Catalinas, Costa Rica 17 Paseo del Mar
This beachfront four-bedroom, 4.5-bathroom mansion is called Casa Sirena (“Mermaid House”) for good reason: It’s just steps away from the black-sand beach of Playa Danta and offers a breathtaking view of the Gulf of Papagayo. The courtyard features a jacuzzi and a stately fountain that flows beneath the entry path and into a turquoise saline pool. The interior boasts multiple open-air living spaces and a domed ceiling of coralina stone. $2,900,000, lascatalinascr.com
David J. Swi! (log cabin)
Big Island, Big Escape
Start your day with morning laps in your private infinity pool
Story Nathan Pemberton
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Jim!Dobson! January!2,!2017! ! ! ! ! ! ! ! ! ! ! ! ! ! !
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Landing by private jet into the sparkling clean and updated Cabo San Lucas airport is a breeze. A private VIP area is set apart from the crowds of tourists and outside the lounge awaits the SUV with cold towels, water and comfort for the easy 45-minute drive to paradise. My idea of paradise is a beach that is tranquil, secluded, private and away from the throngs of drunk tourists. A place where you can truly relax and enjoy the simple pleasures of life and marvel at the beauty of nature. I found this place, and I am truly reluctant to share it with anyone for fear I will lose the chance to return and experience this hidden gem again. But it is so special, that I hope you will someday get to experience it. The new Four Seasons Hotel and Residences in Costa Palmas is a property that will take your breath away. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
Costa Palmas is a brand new, 1000-acre private beachfront resort community on two miles of quiet beach on the Sea of CortĂŠs, located just outside of Cabo San Lucas. Surrounded by organic orchards and farms and including a stunning 250 slip deep-water marina, the area will be home to an all-new Four Seasons Resort and Private Residences Los Cabos, a Robert Trent Jones II 18-hole golf course, and the Costa Palmas Beach & Yacht Club with space for superyachts up to 250 feet. This will ultimately become one of the more exclusive
billionaire retreats, considering the current popularity of neighboring La Paz, which hosted a dozen of the wealthiest families and their superyachts over New Year's Eve. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
In 2018, Four Seasons in conjunction with Los Angeles-based Irongate development, headed by Jason Grosfeld, will open its very first property in Los Cabos, Mexico. Grosfeld is involved in the acquisition, financing and development of high-end commercial properties in Los Angeles and elsewhere. Among his high profile properties in Hawaii are the Watermark and The Ritz-Carlton Residences, Waikiki Beach. ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
I spoke with Jason Grosfeld in a long-range interview about his plans for the new Costa Palmas property and his thoughts for the future of the area. What first attracted you to the Costa Palmas property? “I first saw the property 10 years ago, a friend of mine owned it and I never got it out of mind. The combination of three key factors when you're a resort developer are; proximity to a major international airport, deep white sand beach with swimmable and safe water for kids, and is it unique for the area. Most areas have miles and miles of resorts stacked up, so what’s particularly unique about this part of Baja is that our beach faces north up into the Sea of Cortes, so it’s incredibly protected. What that affords us is still water like a lake for most of the time. It’s kind of Caribbean style, magical clear water with a sand bottom. There is no algae, no coral, and its pure sand on the bottom of a shallow, easy sand bar shelf for 50 meters."
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Ron!Johnson!and!his!wife,!Susan,!had!been!vacationing!in!Hawaii!for!years,!first!at!the!Four!Seasons!and!then!in!a!home! they!purchased!in!the!Kona!district!of!the!Big!Island.!Four!years!ago,!they!purchased!a!series!of!plots!in!the!Hualalai! Resort,!a!gated!community,!club,!and!resort!on!the!northwest!side!of!the!island!with!the!aim!of!developing!them!and! flipping!them!for!a!profit.! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! After!a!year!or!two!of!sitting!on!one!property!without!developing!it,!the!couple!decided!that!they'd!rather!build!a!house! there!for!themselves.!"Something!more!grand!that!really!captured!the!essence!of!Hawaii,"!said!Johnson,!who's!the! president!and!chief!executive!officer!of!Central!Bancorp,!a!group!of!financial!companies!based!in!Colorado!Springs.! "Stone,!fire,!water—those!are!the!interesting!elements!here!in!Hawaii,!so!we!tried!to!emphasize!those!in!the!house.!
After!14!months!of!construction!("everything!has!to!come!here!on!a!boat,"!Johnson!said.!"There's!very!little!on!the! island!other!than!lava"),!the!couple!moved!in,!in!October!2015.!They've!been!able!to!enjoy!the!house!for!a!year,!but!now! financial!considerations,!said!Johnson,!have!made!it!necessary!to!sell.!"Life!sometimes!takes!turns,!and!I!find!myself! needing!to!stay!more!engaged!in!our!group!of!businesses,"!he!said.!"This!isn't!the!right!time."! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! He's!placed!the!home!on!the!market!for!$14.95!million.!Buyers!will!find!a!pristine!home!with!7,000!square!feet!of!indoor! space!and!another!2,400!square!feet!of!"Lanai"!area,!a!term!that!denotes!a!covered!(albeit!outdoor)!living!space.! Including!the!house's!garage,!the!home!covers!a!total!of!10,540!square!feet.! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! The!house!was!built!with!mahogany!trim,!marble!floors,!and!cedar!beams,!and!the!light!fixtures,!Johnson!said,!are! customXdesigned!for!the!house.!(Its!interior!was!designed!by!Gina!Willman,!a!HawaiiXbased!interior!decorator.)!There! are!five!bedrooms,!five!bathrooms,!and!two!halfXbaths.!In!addition,!there's!also!a!large!home!office,!a!media!room!with! soundproofing!("I!have!a!stereo!habit,"!said!Johnson),!and!a!large,!central!living!area!with!a!kitchen,!living!room,!and! dining!room.! !
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HAUTE PROPERTY Realty Check
Surf & Turf THIS SUMMER’S PRIMO OCEANFRONT PROPERTIES? CATCH THE WAVE FROM MALIBU TO MAUI TO MIAMI! BY KATHY A. MCDONALD
Who isn’t entranced by sea breezes and ocean views? Beachfront digs can be full-time residences, second homes, or investment properties—but no matter their use, the bottom line is they’re expensive. In Malibu, current pricing can top $4,250 per square foot depending on the swath of sand (Billionaire’s Beach earned its moniker due to its high-net-worth residents). Preferred out-of-town options for Los Angeles’ high-end buyers—Maui for the sporty set, Miami Beach for art lovers—combine ease of access, beachfront living, and exotic coastal cultures. “Malibu is now a destination,” says Jennifer Chrisman, founding partner of Partners Trust Malibu (themalibu life.com). No longer a sleepy beach town, the city has evolved into a buzzing entertainment industry hangout that attracts international buyers. (The area’s unconfirmed highest-priced deal to date was an un-MLS-listed $75-million sale of a 9.5-acre Encinal Bluffs compound to an anonymous Russian buyer.) New restaurants (Nobu Malibu and Mastro’s) and improved shopping (Malibu Beach House, Lanvin, and Intermix) have energized the city’s entertainment options. As a second or vacation- home market, Malibu’s appeal is global. “We have a very strong summer rental market,” notes Chrisman. Monthly oceanside rentals range from $45,000 to $200,000 in the peak summer season; investors are attracted to the almost-guaranteed income. Chrisman is repping Farrah Fawcett’s former beach house on Malibu Road, ideally situated on the deepest section of the beach, leasing for $150,000 per month in July and August. Malibu’s luxury residential real estate inventory is so limited and building restrictions so omnipresent, most amenities (pool, tennis court) can’t be replicated under current restrictions:
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hence the upward-trending prices. “Malibu’s prices are always high,” says real estate agent Jennice Ann Tronciale of Sotheby’s (sothebys.com). Her $12.995 million listing is a bit of rarity: a complete makeover (down to the studs) of an oceanfront multilevel on La Costa Beach (21660pch.com). It’s now thoroughly contemporary, with 3,000 square feet of sleek interiors and glass walls facing the sea. The turnkey property suggests buyers need only bring their swimsuits. The effortless beachy lifestyle is most sought after in cities where downtime is so precious. On the western coast of Maui, Hawaii, the Montage Residences Kapalua Bay are proving an ideal getaway for Southern California buyers. “The residences incorporate the really unique natural environment and are oriented towards the outdoors, maximizing views,” explains Tina Necrason, vice president of residential for Montage Hotels & Resorts (montageresidences kapaluabay.com). Overlooking the emerald-green waters of scenic Kapalua Bay, the 54 Montage residences can be purchased fully furnished; they range from 2,700 to 4,000 square feet, and pricing tops out at just over $8 million. The four-bedroom option is proving most popular, notes Necrason, reflecting the trend towards extended multigenerational families vacationing together. The resort’s diversions are almost endless, from hiking West Maui’s mountains to spa visits to virtually every water sport. “When it comes to second homes, people have their spot they are very loyal to,” says Erika Alm, principal at the real estate firm PowerPlay Destination Properties, which oversees sales of the Makai Collection at Kaanapali Beach, Maui’s Honua Kai Resort & Spa (makaicollection.com). “They develop a strong affinity to a
FROM TOP:
The late Farrah Fawcett’s Malibu Road beach house (ABOVE, CENTER), situated on an expansive stretch of sand, is leasable for July and August for a breathtaking $150,000 per month; an open-air living/ dining room at the Montage Residences Kapalua Bay on West Maui; the LA art crowd is grabbing up high-end digs, like those at the Shore Club (MIDDLE BUILDING), in hotter than ever Miami.
place over time.” For LA visitors (and buyers), Maui is an easy step into a tropical climate. Priced from $3 to $3.8 million, the Makai Collection is the quintessential beachfront option, with see-through glass balcony walls, smart home automation (unusual for Maui), and open-plan kitchens with designer finishes. What holds true for Maui—no change of currency is required for a journey yielding a vibrant multicultural beach destination—is doubled down in Miami Beach, where prime oceanfront properties are selling like mad. (Art maestro Larry Gagosian reportedly bought into the high-profile, 18-story Faena House, an almost immediate sellout, despite its north-of-
$3,000-per-square-foot price.) “The high-end submarket of Miami Beach is [suddenly] attracting Angelenos and other high-net-worth buyers because Miami has become a global destination,” explains Horacio LeDon, president of Douglas Elliman development marketing, Florida and California. These luxury plays are in high demand, adds LeDon, whose firm is repping the 75 tony residences at South Beach’s Shore Club (thenew shoreclub.com), which will have expansive ocean-facing terraces when they’re completed in 2017. He adds, “These buyers will snap up good properties as quickly as we can roll them out.” Surf’s up and checkbooks are out. LAC