One of our real estate gurus writes in to let us know Pierre Koenig, who has tended to lag behind the "Big Three" of LA Architecture: Neutra, Schindler and Lautner, has set a new sales record for Case Study #21, also known as the Bailey House. Architectural Record announced last week the house would be sold by auction house Wright this month, and sell it did. Our real estate guru provides analysis on the sale price:
1,250 sq/ft Laurel Canyon Case Study house breaks $3.1 Million or $2,500 a square foot. Realized price reflects about 4X the neighborhood average. With no view or swimming pool.
Now, as this is a unique “auction” method, as opposed to the classic agent-driven home sale, there is a 20% “buyer’s premium” - so, deduct 20% from the $3.185MM to get to the “gavel” price and the price the seller realized (more in the $2.65MM range). That said, the buyer still had to write a check for almost $3.2 million.
As the seller purchased the house for $1.6MM in 2004, from the estate of Dan Cracchiolo, the now-dead (motorcycle accident in the Hollywood Hills) Matrix producer who did the heavy lifting on the restoration and got the house published by Architectural Digest, he certainly out performed the market, but it wasn’t the killing it appears. All things being equal, the average Hollywood Hills home appreciated about 44% in that time period and Case Study #21 did about 66% appreciation based on this sale. Proving – again – initial quality and provenance in any sort of investment are important.
Makes us wonder what the future of Case Study #22 holds as the original owner, the lovely Mrs. Stahl, grows older gracefully atop the Hollywood Hills.