When you auction luxury items, you normally think of art, jewelry or celebrity memorabilia. Luxury homes are auctioned from time to time, but usually this is the result of something legal like a foreclosure. This is not the case with Villa Firenze, the ultra-luxury Beverly Hills estate, which holds the record for the most expensive house sold at auction in American history. And even after selling it at a 63% discount on its original list price!
Villa Firenze is the ultra-exclusive Beverly Park located on the 9-acre site of neighboring Hood, which is located in the hills of Beverly Hills. This is truly incredible. And I say that as someone who watches luxury real estate sales throughout the day.
Take a moment and watch this video:
If you don’t count, the 20,000-square-foot main house has 20 bedrooms. There are several guest houses scattered throughout the property, either of which would be a luxury mansion in most cities.
The garage can hold up to 30 cars.
There is a tennis court, pool and a private jogging trail.
The seller is a Hungarian-American airplane that leases to billionaire Steven Udvar-Haji.
Steven earned his first fortune for a company called International Lease Finance Corporation. Established in 1973, he sold the company to AIG for $ 1.2 billion in 1990 to an insurance company. His latest company, Air Lease Corporation, is publicly traded and has a market cap of approximately $ 5.6 billion. Air Lease has around 300 aircraft that are leased to airlines and private customers around the world.
Steven and his wife Christine actually own two other mansions in Beverly Park, so they are definitely no longer homeless!
He owned the land where Villa Firanze was built for more than 30 years. He completed Villa Firenze in 1998. It was listed for sale for the first time in 2018 for $ 165 million.
After not getting a buyer for two years, for some reason they opted to put the property up for auction. Maybe they wanted it with their hands? The auction began in late February and just concluded this week.
Interestingly, MLS recorded a final sale price of $ 51 million. This will be a 70% discount on their 2018 price. According to a Wall Street Journal article, the final selling price was “Close to $ 60 million“, Which will be a discount of 63%.
In addition, a representative of Concierge Auctions, which held the listing, told the Journal that “The value entered is not representative of the entire amount, and that complex transactions involve a number of additional considerations that will not be recorded publicly.“
At $ 50 million or $ 60 million, somehow, Villa Firenze is now the most expensive house sold at auction. The sale was paid $ 42.5 million at an auction of a house in Hillsborough Beach, Florida in 2018. That house was initially listed for $ 160 million.
If the state of California uses an MLS value of $ 51 million, the new owner – whose identity is not yet known – will be on the hook for an annual property tax bill of $ 510,000. So the new owner has to pay (or burn with savings) about one million dollars each year to cover this one bill.
How much do you think about monthly landscaping and maintenance at Villa Firenze ???