Despite the fact that the Real Estate market in most of the country is feeling the pinch, the Island of Palm Beach continues to buck the trend with several high-end property sales this season.
Described as the opposite of a bubble, sources within the industry say that the demand for Palm Beach property is increasing, while availability is decreasing. And, judging from the amount of record-breaking sales in the last few weeks alone, it looks like it will continue.
Industry experts cite a couple of reasons for the anti-bubble situation in Palm Beach. First, investors are recognizing the potential value of owning property on the Island, rather than investing their money or playing the stock market. Also, supply has been reduced by the ever-growing practice of merging two or more properties into one large parcel.
Some of the more notable sales this season include:
Trump Mansion Under Contract for $100 M
A 62,000 square-foot oceanfront mansion owned by Donald Trump has reportedly sold for its full asking price of $100 million to an unnamed foreign buyer.
Trump bought the 6-acre property in 2004 for 41.35 million and spent $25 million renovating it to include nine bedrooms, media room, wine room, art gallery, conservatory, ballroom, two guest houses and a 48-car garage.
Trump predicted he would sell the property at that exact price three years ago, before it ever went on sale. After toying with the idea of converting the property into a luxury hotel, he dropped his original asking price of $125 million recently, after reportedly turning down offers ranging between $85 and $90 million.
According to reports, the unnamed buyer is contemplating tearing down the current structures and perhaps dividing the land into multiple parcels.
Kimmel Mansion – Speculated Price $75M
Built in 1998 and designed by architect Thierry W. Despont, Sidney Kimmel’s European-style Palm Beach mansion at 1236 S. Ocean Blvd is under contract for a reported $75 million.
According to reports, the buyer, who wishes to remain anonymous, was the second to make an offer on the property, which attracted celebrities, athletes, wealthy patrons from abroad, key figures in business and even a Saudi prince.
Depending on how you view it, the sale price could exceed the Town record set for residential real estate in 2004 – the sale of Casa Apava for $70 million to Dwight Schar, Chairman of NVR Inc. Schar also purchased two vacant plots across the street from the same person for $22 million, his purchases totaling $92 million.
Palm Beach Homeowners Get Offer They Can’t Refuse
Proving once again that Palm Beach follows its own set of rules, word on the Island is that George and Frayda Lindemann’s oceanfront residence at 60 Blossom Way has been sold for a price rumored to be between $70 and $80 million – and it wasn’t even on the market.
The 27,000 square feet Balinese-style mansion is situated on a 3.7 acre lot and has 320 feet of private beach. The Lindemanns finished building their home, designed by Peter Marino, in 2000.
Clearly, the offer was too tempting to pass up. However, according to reports, the Lindemanns will stay in Palm Beach, possibly moving farther North and into a smaller, more manageable residence.
Developer Swanson Sells Spec House
Dan Swanson, a developer for Addison Development Co. sold the property at 589 N. County Road in December for an undisclosed amount, although sources place the price between $40 and $47 million.
Bought in 2001 for $11.8 million, Swanson demolished the 1962 Bermuda-style home that was there and replaced it with a 15,700 sq. ft. compound with two guest houses and a seven-car garage.
Reef Sells for $31.85M
In another surprise Palm Beach sale, The Reef was sold to Stephen M. Ross, co-owner of the Miami Dolphins. The property was not listed for sale, and no real estate brokers participated in the transaction.
Ross is also chairman, CEO and founder of The Related Companies, developer of Time Warner Center and multiple luxury towers in New York City.
Worth Ave. Home Sells All Contents
On the market since fall 2006, the lakefront property at 460 Worth Avenue sold for $19.94 million, plus an additional amount for everything inside. The Seller, Stephen E. Myers Sr., co-founder and chairman of US Cable Group, bought the property in 1993 for $4 million – a nice profit in any market.
The Buyers, Karlheinz and Marianne Andresen, have another waterfront home in Hamburg, Germany, where Karlheinz Andresen Land Administration Co. is located.
The Worth Avenue home was built in 1991 on the spot where socialite Sue Whitmore lived. In 1920, however, the site was home to Villa des Cygnes – House of Swans – built for Major Barclay Warburton and designed by Palm Beach fixture Addison Mizner.
Il Lugano Penthouse sells for $12.1M
In what is most likely a record price for a condominium in Palm Beach, the penthouse of the West building of the Il Lugano condominium was bought from Miami Dolphins co-owner Stephen Ross for $12.1 million.
The unit at 300 Seminole Ave has 5,798 square feet, is situated on an entire level of the building and has five terraces that overlook the Intracoastal, Palm Beach and also the Atlantic Ocean.
Renovated in 2000 by developer Richard Schlesinger and his son Adam, what used to be the 66 unit Dorset House was totally restructured into 14 luxury condominium apartments, taking out a level of the building to accommodate larger units with higher ceilings. The unit also boasts a private cabana, boat dock and 4-car garage.
Former Xerox CEO’s Estate Sells for Over $10M in Manalapan