A Malibu house is poised to test the luxury market in Los Angeles, coming back on market at $42.5 million––a 21 percent increase from its asking price in December, according to property site Zillow.
The price hike comes as inventory of luxury properties remains lean in coastal enclaves and other high-end neighborhoods, where buyers with ready cash can offset concerns about rising interest rates.
Aspects of the property at 23826 Malibu Rd., might seem relatively modest for a neighborhood distinguished by A-list celebrities. The 4,500-square-foot house is a 47-year-old California bungalow, according to the Redfin listing site. The price comes to $14,124-per-square-foot, and the place comes with a guesthouse, a jacuzzi, a firepit, and a beachside deck that looks out into the ocean.
The home is owned by 17406 Los Alimos LLC. Juliana Terian was listed as a director. She is president and chief executive officer of Rallye Motor Co., a company that operates car dealerships on New York’s Long Island. Chris Cortazzo, who holds the listing, did not return a request for comment.
Nearby properties include a four-bed, 6.5-bath house located at 23634 Malibu Colony Rd. #50, which sold for $22.2 million in March. Another neighbor is 23505 Malibu Colony Rd., a four-bed, four-bath house that sold for $9.25 million in February.
The big boost on the latest asking price of the Malibu Road listing likely stems in part from the privacy it affords, said Lawrence N. Taylor, founder and chief executive officer of real estate investment company Christina and a resident of the neighborhood.Taylor noted that the property abuts one of the longest, deepest beaches in Malibu.
“It has elements of Carbon Beach,” Taylor said, referring to a high-profile Malibu neighborhood. “But without the noise and traffic of Pacific Coast Highway. Is it worth $42.5 million? It is to someone who wants it.”
Other residents of Malibu Beach Road include real estate developer and former owner of L.A. Clippers Donald Sterling and Tom Gores, a private equity billionaire and owner of the Detroit Pistons.
Jay Luchs––a vice-chairman at Newmark who is best known for working in commercial real estate but also sells luxury homes in Malibu with business partner Steven Shaefer– said a jump in asking price could be justified in the current luxury residential market by supply and demand.
“There is tremendous wealth and a lack of product” in upscale enclaves such as Malibu, Luchs said, “so naturally prices will go way up.”
The price hike also reflects the adage that everything is for sale at the right price, said Ron Wynn, a veteran broker associated with Compass.
“If you got someone who wants my property so badly, I’ll sell it to them––but don’t bring it to me at market value,” Wynn said.
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