While Richard and Laurie Lynn Stark may not be too well-known outside of celebrity circles, they have just acquired their seventh home in Malibu. Yes, you read that right, for the paltry sum of $38.5 million the couple have now added to their Malibu property portfolio which must be worth well in excess of $100 million and probably approaching $200 million. So, why is Malibu property so sought after and so expensive!
Home number seven
Richard and Laurie Lynn Stark are multimillionaires who have made a fortune selling everything from handcarved dining tables (for $250,000 each) to jewellery, office equipment to incense and everything else in between. Their Chrome Hearts lifestyle brand has brought them untold wealth although it is worth bearing in mind they start this business nearly 30 years ago.
Their new Paradise Cove property was not publicly listed for sale but official documentation shows that it changed hands for $38.5 million in April 2017. The property was built back in 1946 and boasts a total of nine bedrooms in a multi-structural compound spanning an impressive 2.8 acres of prime Malibu real estate, just off the beach. It is believed that the property last sold back in 2012 for $13 million when previous owner Andrew Lessman, of Home Shopping Network fame, joined the celebrity neighbourhood.
Why is Malibu real estate so sought after?
There are many obvious reasons why Malibu real estate is so sought after with the prime reasons being the area and the views. It is also worth noting that scarcity of property also plays into the hands of sellers although this year we have seen five property sales already when the average has been around one or two per year in recent times. It looks as though potential buyers are willing to pay up for property and long-term holders seem happy to cash in their Malibu property market chips.
To give you an idea of the kind of properties we are talking about David Geffen recently sold his Carbon Beach property to a billionaire businessman and his wife. Hong Kong billionaire Karen Lo has also been in the news paying $70 million for a “blufftop compound” in the guarded Serra Retreat. Larry Ellison also acquired another Carbon Beach mansion for a staggering $48 million, his 13th property on that beach!
Staggering price rises
The reality is that this area of Malibu attracts property buyers who are able to put forward telephone digit bids for property. Paying tens of millions of dollars for a property is neither here nor there when considering their overall wealth. We have multimillionaires and billionaires spread right across the beach and with the likes of Larry Ellison owning 13 properties on one beach that just about says everything about demand and the area.
It will be interesting to see whether more properties are made available in the second half of 2017 because we have already seen more transactions in the first six months than we normally see in a full year. Are some investors cashing in their chips? Has the market topped out? Are there concerns about the US economy?
No, this is a part of the world where money is literally no object and people simply move on to bigger and better things.