March 2017
Allison Williams
Girl meets world
Curtain Up 10 luminaries of the new Broadway season Buff Bookings The best hotel gyms in America Sun Salutations in Paradise A yoga retreat in Turks and Caicos
My Second Home
Turks and Caicos Villas at Gansevoort
Wish You Were in Dixie? You will when you see this mansion on the Carolina Coast
Kiawah Island, South Carolina 153 Flyway Drive
The Basics: If you’re in the market for a classic Southern estate with the kind of modern amenities you’ve grown accustomed to in the city, this palatial manor on the South Carolina coast will scratch that itch. Every room in this five-bed 7,000-square-foot home—tucked comfortably into a five-acre lot of scrub pines and palmettos—is replete with Sonos audio, Lutron dimmers, and handfinished French oak floors, and its three floors are naturally lit by panoramic portrait windows. In addition to the seeming endlessness of the interior, there are nearly 3,000 square feet of deck space for outdoor gatherings on those warm Lowcountry nights. The Extras: From the observation deck on the top floor, you can take in the unblighted night sky to the soundtrack of crashing waves. During muggy summer days, the !"# # March 2017
infinity pool might be the only body of water worth trekking to. When sandy expeditioners return from the beach, they can make a beeline for the gourmet kitchen, where two Sub-Zero refrigerators store the refreshments. There’s room to comfortably seat eight guests around the oversize granite island.
This stately Lowcountry home’s panoramic windows look out onto the Atlantic
This waterfront villa is perched on the rocky bluffs of Providenciales, in the Caicos islands. The fourbedroom getaway boasts two pools, one in the middle of the property’s courtyard, plus elevated decks and private ocean access. Customized amenities offered by Gansevoort resort, such as grocery delivery and year-round property maintenance, allow owners to embrace a life of leisure. $3,750,000, gansevoortvillastc.com
Lake Tahoe, California Mountainside at Northstar M25 #19, Monte Stella
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Part observation deck, part mod lodge, Monte Stella (“Starmount”) overlooks California’s Pacific Crest Trail like a beacon of refuge on a winter day. The 6,299-squarefoot behemoth has five baths and six bedrooms, each with a personal vista onto the verdant conifers below. Inside, sleek marble counters, stained timber walls, and charcoal fixtures make this second home a cozy getaway, sun or snow. $7,995,000, mountainsidenorthstar.com
The Lifestyle: The Osprey Beach development on Kiawah Island is a terra-formed marvel of dunes and sawgrass. The lush, natural landscapes across this sevenmile-long island obscure the constant activity and amenities of award-winning developments such as Cassique. Just around the corner of every serene walking path and road are top-flight tennis facilities, kayaking, clay pigeon shooting ranges, and world-famous golf courses (the PGA Championship is slated to return to the island in 2021). $10,500,000, kiawahisland.com Story Nathan Pemberton
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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,!waterâ&#x20AC;&#x201D;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.! !
!
! ! The!outdoor!areas,!though,!are!the!house's!biggest!selling!points.!"The!one!thing!I've!learned!from!the!time!I've!spent!in! Hawaii!is!that!a!house!is!really!about!its!outdoor!space,"!Johnson!said.!"That's!why!you!come!here,!and!that's!where!you! want!to!spend!your!time,!so!we!tried!very!hard!to!get!the!outdoors!right."!To!that!end,!he!built!a!full!outdoor!kitchen! with!a!barbecue!and!pizza!oven,!two!refrigerators!and!an!ice!maker,!installed!a!pool!and!terrace,!and!hired!landscape! designers!to!create!a!lush!garden.! !
! ! ! If!you!tire!of!the!house!itself,!it!overlooks!the!10th!fairway!of!the!resort.!Johnson!says!that!to!buy!the!house!you!don't! technically!have!to!join!the!club,!but!adds,!"Why!would!you!be!here!if!you!couldn't!use!all!of!this!stuff?"!By!that!he! means!the!resort's!tennis!courts,!seven!restaurants,!a!spa,!a!beach,!and!two!championship!golf!courses.!The!initiation! fee,!Johnson!said,!is!$250,000,!and!annual!fees!are!another!$45,000.!"All!of!that's!available!to!you!when!you're!at! home,"!he!said.! !
! ! ! The!house!is!just!a!10Xminute!drive!from!the!Kona!airport.!Johnson!belongs!to!a!service!called!the!Kona!Shuttle,!a!private! club!that!owns!a!737!which!leaves!Oakland,!Calif.,!for!Kona!every!Thursday!and!returns!every!Sunday;!the!flight!takes! about!four!and!a!half!hours.!(Commercial!flights,!it!should!be!noted,!fly!on!a!regular!basis!to!Kona,!too.)! The!house!has!been!on!the!market!for!a!few!months.!"Right!now!is!the!slow!time,"!Johnson!said.!"By!the!time!you!get!to! the!December!holidays,!this!place!will!be!packed."!
SPECIAL REPORT THE LATEST ASSET ALLOCATION ADVICE
PENTA
March 28, 2016
TRUSTED ADVICE FOR FAMILIES WITH ASSETS OF $5 MILLION OR MORE
LOVELY HOMES, HIGHER PRICES Luxury second-home prices are up 11% in the 20 best resorts across the nation. Our advice on where to find good value. This yearâ&#x20AC;&#x2122;s top-ranked spot: Austin, Texas.
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2/23/16 11:22 AM
COVER STORY | REAL ESTATE
Plush Houses, Rising Prices Our latest survey of the best second-home resorts in the country
By Richard C. Morais and David Schutt
Chris Diaz/Tour Factory
I
T’S PERHAPS NO SURPRISE THAT 2015—THE
year the U.S. Federal Reserve began to raise interest rates—was quite a good year for the luxury second-home market. In such an environment, there’s a buyers’ impetus—even if in the mind only—to close real estate deals while money is still cheap. Last year, according to our research partner RealtyTrac, the median price of second homes above $1 million on our exclusive list of 20 luxury resorts increased 11%, to $2 million, the same percentage increase for the median price of all houses in the country. You can find our second-home table compiled by Sonia Talati on page 34, complete with prices and local-market intelligence. Our survey tracks $1 million-plus single-family houses in ZIP Codes with a high percentage of second-home residences, and we rank the 20 resorts according to our judgment of their livability and value. Drum roll, please! The top spots on our list 30
BARRON’S PENTA
March 28, 2016
A good deal: 105 Edgewater Cove, with views of Lake Travis, outside Austin, Texas. This cypress wood-andglass modernist retreat was reduced to $1.1 million. this year go to Austin, Texas, where a softening luxury housing market offers a buying opportunity; Lake Geneva, Wis., where a long-moribund market suddenly turned lively; and Park City, Utah, where a major investment by Vail Resorts is likely to take this ski and film retreat to new heights in the coming years. In contrast, Palm Beach, Fla., and Hanalei, Hawaii, bring up the bottom of our list. Palm Beach is overheated after another 20% median
price increase, to $3.79 million. And Hanalei— which we ranked first last year, arguing that a 4.2% median-price drop offered a rare opportunity to find a dream second home—responded rather too enthusiastically to our advice. In 2015, Hanalei’s median price jumped 102%, to $2.92 million. But back to top-ranked Austin, where the median price for $1-million-plus homes fell 5%, to $1,334,718, in 2015. Brokers at both Sotheby’s International Realty and Coldwell Banker Real Estate in Austin tell Barron’s Penta that while sales around the $1 million mark continue to close, luxury homes priced above $2 million are a hard sell. “People who like money want to hold on to their money,” says Patricia Vincent, a leading broker at Coldwell Banker in Austin. “They’re concerned about the economy.”
We think that’s a buying opportunity. Unlike many second-home retreats on our list, Austin and its brushy environs has a bright economic
Austin, left, has a robust tech-driven economy, but its “downtown” vibe and red-hot live music scene are big draws for second-home buyers.
From top: Al Argueta/Alamy; Patrick Ray Dunn/Alamy
Under the Tuscan Sun was the rage. Today, they look like abandoned pizzerias and make up a lot of the inventory. The best we saw is on Mount Larson Road: a 6,600-square-foot cliffedge Italianate villa with an infinity pool and a great view, which was offered at $2.4 million. But our favorite property was 105 Edgewater Cove in Lakeway, a 40-minute drive from downtown Austin. The interior-courtyard bridge spans a pool; you then pass into a glass-fronted living room in cypress wood, offering up handsome views across Lake Travis. It’s a terrifically stylish three-bedroom retreat, with wine room, reduced to $1.1 million and listed with Engel & Volkers Austin.
future, thanks to the information-technology in- city; a critic from the German dustry that sprung up around Michael Dell. Vail Resorts, the ski-resort opedition of Rolling Stone leaned erator from Colorado, has moved Savills World Research, the London-based over the bar to give us Watson’s into Utah’s Park City, famed for real estate advisory, tracks tech-driven cities musical bona fides. its dry powder and 35-minute comfrom San Francisco to Mumbai, arguing these Jennifer Keefer of Kuper Sothemute to Salt Lake City’s airport. In are some of the best cities in the world to make by’s showed us Travis Heights homes 2013, Vail Resorts signed a $25-milreal estate investments, due to their above- around $1 million, including a stylish and lion-a-year lease to operate the Canyons, one average growth rates. Savills recently judged light-filled modern farmhouse on East Annie 12 such global tech cities on everything from Street, and a 1939 farmhouse on Kenwood, of three major local ski areas, before plunking “talent pool” to “quality of life” to “real estate tastefully restored and boasting a Zen-like yard down another $182 million to buy out much of neighboring Park City Mountain Resort. Park in the back. costs.” Austin took the top spot on its list. Stay away from certain neighborhoods in City is now the biggest ski resort in the U.S. But Austin also has a lot going for it as a second-home destination. The “live music capital Westlake and Rollingwood, where everyone with 7,300 acres of skiable terrain. It also offers of the world” offers up not only a red-hot music from Michael Dell to Matthew McConaughey value for your money. The median price in Park scene, but also succulent butcher-block brisket, have homes; these are year-round ZIP Codes City is $1.46 million, comfortably below Aspen’s intellectual stimulation at the Art Institute of with terrific school districts and resultantly $3.86 million, Vail’s $2.12 million, and Sun ValAustin and University of Texas, and bucolic hills high prices, advises Coldwell’s Vincent. Those ley’s $1.6 million. Park City began as a raucous 19th century siland lakes nearby for hiking and motorboat out- who prefer sprawling lawns, golf greens, and ings. It’s also a liberal oasis in a zero-income-tax boat slips should instead look more to Lakeway ver-mining town with lots of bars and a red-light state, and urbane folks with a “downtown” sen- and Spanish Oaks. But caution: Many such district; it now hosts Robert Redford’s Sundance sibility will in particular be drawn to the small neighborhoods abound with steroid-pumped Film Festival and, soon, the newly reopened city’s slogan, “Keep Austin weird.” McMansions, built by “Dellionaires” when and relocated Kimball Art Center. Many of its Travis Heights is a central ski slopes are included in Vail Resorts’ Epic Pass program, a season neighborhood on a hill that falls ski ticket that covers all of Vail’s to the river known as Lady Bird 12 resorts worldwide. Each spring, Lake. It’s dotted by flowering gardens, handsomely updated homes skiers can buy online deeply discounted passes, whose price, like an from the 1920s, and sleek modernist glass boxes. The boutique Hotel Uber surge, rises as the new season approaches. Last year, prices Saint Cecilia would be considered started at just $769, barely a third cool in New York, with its music of what it costs for a single-season executives lounging around the pass to a top area like Aspen. pool; and in the Ignite Fitnez gym Bill Ligety, a real estate agent around the corner, virtually everyone younger than 35, of both sexat Summit Sotheby’s and the father es, is covered in tattoos and shaves of Olympic skier Ted Ligety, says their armpits. The Continental that older homes in good mountain Club, meanwhile, is a short stroll locations—but lacking “ski in, ski away on South Congress, and out” access—are usually priced at when we dropped by the dive one around $500 per square foot (including land) and renovated after a night, local country-singer legend sale. At the other end, new mounDale Watson was onstage with his tain homes with good ski access can silver pompadour and room-filling Park City, Utah: “Rustic” is out, “Mountain Modern” is in. The few still-available Stein run $1,200 to $1,500 a square foot. baritone. This is a sophisticated Eriksen Residences, seen above, are priced between $6.8 million and $7.8 million. 32
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March 28, 2016
Rocky Maloney/Engel Völkers Park City
The kitchen in a renovated 1910 home in Park City’s Old Town. Ask: $3.1 million. “Mountain Modern” is the latest rage, having supplanted “Rustic” architecture and its decor of wall-mounted moose heads. The new contemporary taste is epitomized by Stein Eriksen Residences in Deer Valley, a wealthy Park City enclave that draws everyone from Mitt Romney to Dustin Hoffman. The three (out of 15) remaining Deer “SKI IN, SKI Valley homes, ofOUT” ACCESS fered by BerkCAN COST shire Hathaway, are priced at $6.8 $1,500 A million to $7.8 milSQUARE FOOT. lion. The five-bedroom, seven-bath homes have wraparound windows with expansive views, steel floating stairways, outdoor spas, laundries on two floors, radiant-heat floors, and bathrooms boasting travertine or quartz tiling. Mudrooms include personal lockers to stow gear, and they open onto the slopes. The rapid shift to Mountain Modern style has caught some famous tastemakers off-guard. DreamWorks’ co-founder Jeffrey Katzenberg is selling his 1990s-era 10-bath home. On the market a year, the $15.5 million price is down from $20.5 million, but still a tough sell, say brokers. We suggest second-home buyers in the $2-million-to-$5-million price range widen their search, and incorporate more of the town’s strengths, including a free bus system, an excellent municipal athletic center, and the Town Lift that ferries skiers from a downtown square to the mountains’ base. Old Town, Park City’s original
residential neighborhood, is within walking distance of the Egyptian Theatre, a centerpiece of Sundance; the No Name Saloon and Grill, a bar “helping people forget their names since 1903”; and a number of restaurants, like the small-plate specialist Handle. Old Town homes are being taken down to the studs. In the renovated 1910 house we saw, five bedrooms and 4½ baths were somehow squeezed into a 2,825-square-foot house sitting on 1/20th of an acre. Remarkably, the three-floor home didn’t feel cramped; the kitchen was open and modern, and a wide, floating staircase led to lots of room to stow children. Asking price: $3.1 million. More affordable is Park Meadows, a postwar residential neighborhood that’s home to estate agents and the mayor—and, increasingly, big second homes. A 4,000-squarefoot, four-bedroom, five-bath home on about a third of an acre was recently on the market for $1.55 million. It definitely falls into the Rustic category but offers both the savings and the space to renovate. The Enclave at Sun Canyon is about five miles from Park City center, a new community of 33 modern cedar-and-stone homes. A three-bedroom of 3,400 square feet starts at $2.23 million and offers Mountain Modern features on a more personal, livable scale. And for a reasonable price, homeowners can also access the nearby Waldorf Astoria Hotel, to use its spa and store ski gear and to park just a short walk from a gondola. That’s a good deal—all around. n
Top 20 Second-Home Resorts RULES OF THE GAME: Our partner, RealtyTrac (realtytrac.com), compiles local deed and loan data, allowing us to keep a consistent methodology across all our destinations. In all locales, we selected the ZIP Codes with the highest concentrations of second homes. RealtyTrac then filters its database for all nondistressed, single-family homes that sold above $1 million, across all our destinations. Regional differences in reporting required us to source data from local brokers in Austin, Jackson Hole, Lake Geneva, Mount Desert Island, and Sun Valley. We did so using the same parameters and methodology. —Sonia Talati
Ranking
Median Sales Price
% Change Median Sales Price
Property
Market Intelligence
1.
Austin, Texas
$1,334,718
-5%
8533 Calera Dr., Austin Price: $1.88 million Broker: Eve Kush, Coldwell Banker United, Realtors
The priciest property on the market is a $25 million equestrian ranch; market generally is soft above $2 million. Inventory was 20% higher in 2015, with 568 homes sold at prices of over $1 million, compared with 485 the year before. It took an average of 93 days to sell a property.
2.
Lake Geneva, $2,037,500 Wis.
10%
W 3155 Snake Rd., Lake Geneva Price: $5.25 million Broker: Mark Larkin, Keefe Real Estate
A breakout year in Lake Geneva. Sales up 30% in 2015 with high demand for upper-end properties. Inventory on the lake is tight; about two dozen lakefront homes are available from $1 million to $12 million. Teardowns, renovations upward of $5 million. One condo in a 50-room manor on the market for $6 million.
3.
Park City, Utah
$1,463,000
1%
6415 Silver Lake Dr., Park City Price: $4.7 million Broker: Craig Reece, Berkshire Hathaway HomeService Utah Properties
Buyers are back in the driver’s seat, shunning rustic style for contemporary. Prices stand around 15% lower than peak prerecession days; 31 Deer Valley homes sold in 2015, a 46% increase over the previous year. Retired MLB player Rheal Cormier listed his home for $3.5 million.
4.
Hamptons, N.Y.
$2,220,113
-17%
80 Meadowmere Ln., Southampton Price: $42.5 million Broker: Geoff Hull, Corcoran Group
Private-equity exec Gary Garrabrant’s Southampton home on the market for $42.5 million. Financial-market volatility hit East End housing hard, but picked up last quarter. Southampton and Shelter Island reported higher sales volume. Actor Richard Gere’s waterfront estate is available for $47.5 million.
5.
Kiawah Island, S.C.
$1,580,000
8%
49 River Marsh Ln., Kiawah Island Price: $3.5 million Broker: Michelle Lovejoy, Kiawah Island Real Estate
Kiawah Development Partners II finally won the rights to build homes on a hotly contested, 150-acre vacant strip. The island had its best year since 2007, with 287 properties sold. Building permits up 27%. High-end buyers flying in mostly from New York and London.
6.
Martha’s Vineyard, Mass.
$1,550,000
31%
22 Lelands Path, Edgartown Price: $20 million Brokers: Alyssa Dubin and Thomas C. Wallace, Wallace & Co. Sotheby’s International Realty
President Obama’s Chilmark vacation rental is for sale at $19.1 million. Edgartown staged a comeback. The island’s sales volume shot up 17% last year. There are just five high-end properties with homes currently on the market, ranging from $10.5 million to $22.5 million.
7.
Vail, Colo.
$2,116,667
-8%
2476 Garmisch Dr., Vail Price: $2.7 million Brokers: Tye Stockton and Tom Dunn, Stockton Group of Ascent Sotheby’s International Realty
Latin Americans drifted away; filling the void were newcomers from Texas, New York, Michigan, California, and Florida, plus strong demand from Denver and Boulder residents. High demand near $1 million mark pulled down median sales price. American Airlines boss Scott Kirby bought a $9.4 million chalet near Beaver Creek.
8.
North Lake Tahoe, Calif.
$1,670,000
-4%
628 Olympic Dr., Tahoe City Price: $4.3 million Broker: Bill Dietz, Tahoe Luxury Properties
Howard Hughes’ former bluff-top home is back on the market at $19.5 million. While California’s income-tax hike in 2013 pushed buyers to the Nevada side, the housing price spread between the two states created the countertrend. Sales volume in pricier Nevada fell 5%; California was up 7%.
9.
Wailea, Hawaii
$1,572,000
2%
4358 W. Waiola St., Wailea Price: $3.85 million Broker: Tom Tezak, Wailea Realty
A drop in the Canadian dollar curtailed snowbird migration, but U.S. buyers returning created a net neutral effect. High-end inventory is larger than it has been for a while. Beach-access homes cost more than $10 million. The highest sale in Wailea-Makena was $41.8 million for non-oceanfront property, breaking all records.
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March 28, 2016
Median Sales Price
% Change Median Sales Price
10. Palm Springs, Calif.
$1,447,643
2%
41915 Tonopah Rd., Rancho Mirage Price: $4.5 million Broker: John Nelson, Coldwell Banker Residential Brokerage
TV star David Janssen’s former desert hangout went up for sale at $7.3 million. Houses are falling out of escrow; prices reduced. Rancho Mirage’s high-end home inventory is large and hanging over Palm Springs. Buyers are mostly from California, Nevada, Chicago, and Canada, with New Yorkers taking a newly available nonstop flight.
11. San Juan Islands, Wash.
$1,442,750
9%
1961 Mitchell Bay Rd., San Juan Island Price: $5.85 million Broker: Bill Giesy, Windermere Real Estate
Actor Gene Hackman’s old property is back on the market at $3.9 million. Prices 30% below the peak of 2007. Homes took a year on average to sell. Sales volume is down 20%. Currently, 25 properties valued over $1.5 million are available.
12. Sea Island, Ga.
$1,850,000
19%
225 Aledru Way, St. Simons Island Price: $5.15 million Broker: Lewis Glenn, Sea Island Properties
The $5.2 million property shown here belongs to PGA golfer Davis Love III. While primary-residence interest is dropping, second-home draw is increasing. Prices up to $12 million. Inventory remains high. Businessman Del Masters’ private island enters the market at $17.8 million.
13. Mount Desert Island, Maine
$2,975,000
31%
2 Wheelwright Way, Northeast Harbor Price $6.25 million Broker: Story Litchfield, Landvest
High demand and low inventory spiked prices. Houses with water views are rarely available; currently, only three with docks are for sale. Some houses sell privately without ever officially entering the market. David Rockefeller donated more than 1,000 acres to the nonprofit Land and Garden Preserve.
14. Pebble Beach, Calif.
$1,562,750
-14%
1075 Marcheta Ln., Pebble Beach Price: $5 million Broker: Tim Allen, Coldwell Banker-Del Monte Realty
Venture capitalist Andrew M. Paul purchased a $27 million property. Homes fronting the ocean or a golf course average close to $20 million; second homes generally range between $1.5 million and $35 million. Over 30% of high-end buyers came from England, France, Monaco, and China last year.
15. Scottsdale, Ariz.
$1,418,333
-5%
10945 E. Whistling Wind Way #1910, Scottsdale Price: $6.4 million Broker: Lisa Wadey, Russ Lyon/ Sotheby’s International Realty
Pro golfer Kirk Triplett’s Spanish-style Scottsdale home remains on the market, the price cut 15%, to $2.3 million. The market remains slow but is improving, with slightly more $1-million-plus homes selling this year than in 2014.
16. Sun Valley, Idaho
$1,600,000
-3%
102 Sutton Pl., Ketchum Price: $4 million Broker: Sun Valley Sotheby’s International Realty
Bruce Willis keeps slashing the price of his Sun Valley home, now at $7.1 million. The market was fairly flat in 2015. Houses took 233 days to sell, up from 210 days. Demand is at the low end; listings above $1 million are hard to sell.
17. Jackson Hole, Wyo.
$1,782,500
20%
695 W. Ne-Yate Rd., Jackson Hole Price: $11.2 million Broker: Brandon Spackman, Spackmans & Assoc./JH Sotheby’s International Realty
The CEOs continue to jet in. Major shift toward the high end of the market, with sales of $5-million-plus homes rising 200%, lifting the median sales price. Overall, sales volume rose 28% in 2015, nearly matching that of the 2007 peak. Belgian financier Baudouin Croonenberghs’ retreat is on the market for $11.8 million.
18. Aspen, Colo.
$3,858,750
19%
200 Eagle Pines Dr., Aspen Price: $13 million Broker: Craig Morris, Aspen Snowmass Sotheby’s International Realty
More than a dozen single-family homes worth over $15 million traded hands last year. Buyers are largely from New York, California, Texas, and Florida; 15% are foreigners. Many buyers purchase outdated homes and renovate them. Champion golfer Justin Leonard bought a mansion for $9 million.
19. Hanalei, Hawaii
$2,916,250
102%
3565 Kaweonui Rd., Princeville Price: $4 million Broker: Michael Schmidt, Coldwell Banker Bali Hai Realty
Following Mark Zuckerberg’s $100 million purchase, techies are buying second homes. Beachfront properties start at $10 million, mostly bought by West Coasters who can catch a direct flight. Oakley apparel founder James Jannard purchased a clutch of properties for $43.5 million. Sales volume almost doubled last year.
20. Palm Beach, Fla.
$3,787,500
20%
500 Regent Park, Palm Beach Price: $12.95 million Brokers: Isaias Franco and Brandon Tate, Coldwell Banker Residential Brokerage
Wall Street heavy Paul Tudor Jones II purchased a $71.2 million pad, joining the hedge fund industry’s migration to tax-friendly Palm Beach. Strong demand, tight inventory; 123 homes over $4 million came on to the market in 2015.
AVERAGE 2015
$2,009,274
11%
Ranking
Property
Market Intelligence
March 28, 2016
BARRON’S PENTA
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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