Update: A $68 million sale in Malibu

Update: The following correction ran in the L.A. Times on Friday March 7: "FOR THE RECORD: Daly Riordan property: The March 2 Hot Property column in the Real Estate section reported that Nancy Daly Riordan's house on Carbon Beach had sold for a Malibu record-breaking price of $68 million. In fact, the house has not been sold. The story also reported that the home has more than 200 feet of beach frontage. Property records indicate it has 180 feet of beach frontage."

Here's the previous incorrect item as it ran:

News item: Ruth Ryon's Hot Property reports that Nancy Daly Riordan (pictured), the estranged wife of former L.A. Mayor Richard Riordan, has sold a Malibu beach house for an estimated $68 million. "It is believed to be the highest-priced home sale in Malibu, dwarfing the sale last year of the former Johnny Carson estate at $35 million."

"The 12,785-square-foot house, which stands out from its neighbors because it is so large, sits on slightly more than three lots with more than 200 feet of beach frontage along exclusive Carbon Beach -- also known as 'Billionaires Beach.' The mansion, built in 2002, has eight bedrooms, seven bathrooms and a tennis court."

More: "The buyer was described as 'a rich Canadian' by area real estate agents."

Analysis: An item like this isn't so much about real estate as it is about two other subjects: the concentration of wealth and the weakening of the dollar. The last couple of decades have produced new breeds of wealthy, super-wealthy, and the obscenely wealthy. Those fortunate enough to have made their wealth outside of the United States can now buy American property and businesses at a discount.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: L.A. Times

Comments

[anon]

What would be the "rent to price" ratio on that?

[laguy]

so what

[Bill]

Hmmm, $68 million, a new record.

For those who never got near an economics textbook, this means that despite the doom and gloom in the press, the market is ACTING LIKE IT SHOULD.

It doesn't matter who paid it or where they are from, that's how a market economy works. Someone thought the property was worth $68 million and they paid it.

Now when the prices of homes in Malibu start crashing and you can pick up a PCH home for $500K, THEN you can state the housing market has collapsed.

[buz]

I agree that we are seeing an increasing concentration of wealth among a relative few individuals and that many of these people are foreign and will use the weakness of the dollar to buy real estate in the US. I think in this case the "rich Canadian" who bought this Malibu mansion grossly overpaid. 68 million? Don't believe the hype, Malibu ain't that nice.

[John]

Peter,

Uncomfortable as I am about foreign citizens buying up America, there is no way on earth a piece about a home, albeit a nice beachfront home, selling for SIXTY EIGHT MILLION DOLLARS, should contain the sentence "Those fortunate enough to have made their wealth outside of the United States can now buy American property and businesses at a discount."

There may be bargains to be had in Southern California, and those bargains will be getting better, but a $68,000,000 single family home certainly isn't one of them.

I'll bet you a six-pack of your favorite beer that this house sells again at a substantial discount in the next few years.

[1]

That's nice.

[lefty]

hey guys, lol we'll see how philanthropic she is when 'poor' people try to walk on 'her' sand at Carbon Beach! the Times has great stories about beach access! but you know what, even if you can't afford that house, fantastic metro L.A. is still the place to be!! get yourself a nice spot and buy now while the buying's good!

[lefty]

people i forgot, here's a link that tells you what sand you cannot walk on! don't get arrested ok? lol

http://www.coastal.ca.gov/access/Carbon_
Beach_Central_Access.pdf

[Todd]

The County of Los Angeles should be rejoicing. The LA County Tax Collector will be mailing to the owner one hell of a Supplemental Property Tax Bill in the next few weeks. The property will be $70,833/mo for this property. Property taxes are $850,000 per year. If more properties sold like this the county would be awash with cash.

Right now there is also a $130,000,000+ listing in Malibu for 1,300+ acreas. That land has been a real estate trust for more than 100+ years. Family has had it so long California had to take some of it to cut PCH through it. That property tax bill will be $135,416.mo

[David]

Hey laguy...a sale of a one of a kind property by a one of a kind buyer does not indicate all is well in the housing market...economics for the LA housing market (which in my guestimation is not made up of $68 million 12,000 sf homes)...let's see you try and sell a place for what "zillow" says it's worth (my neighbor has had his place listed for over 9 months)...so back to econ...increased supply in the market...and decreased demand (can't finance w/ 0% down anymore)...you do the math

[toby]

What discount?

If Property ran up 400%...why would a 20% or so drop in the dollar be a discount if you're buying it in Euros?

Do the math, you'll still lose money in the near short term.

[John]

http://realestalker.blogspot.com/2008/03/
your-mama-hears.html

Looks like my offered bet's off, Peter, as the $68 million deal didn't go through.

Maybe the Canadian (or Russian?) buyer read L.A. Land and thought better of it.

[Jack]

Something is wrong with the links for this story. When you follow it, you end up at a page showing pictures of Al Jolson's property plus a writeup about Grant Show and Joan Collins. No story, no pictures of the Riordan property. There is a link in the Ryon story that says it will take you to the Riordan pictures, but there are none there.

Was this story spiked by the LA Times???

[Shane Gibson]

In your article re the 68 million dollar non-sale you stated:

"More: "The buyer was described as 'a rich Canadian' by area real estate agents."

Analysis: An item like this isn't so much about real estate as it is about two other subjects: the concentration of wealth and the weakening of the dollar. The last couple of decades have produced new breeds of wealthy, super-wealthy, and the obscenely wealthy. Those fortunate enough to have made their wealth outside of the United States can now buy American property and businesses at a discount."

I lived in South Africa for two years immediately after Nelson Mandela and the ANC took power and witnessed a mass sell-off of the hospitality industry to... American and Canadian investors major hotel chains, restaurant groups and beach front property ended up in the hands of foreigners along with a large chunk of the mining industry. As the rand plummeted the North Americans, and Europeans rolled in. This was a true example of an emerging 2nd world country being sold off at pennies on the dollar. It's also another example of "what goes around comes around."

I'm surprised by the comments in your article and what they implied, as if the USA has degraded into some sort of third world country where rich foreigners and praying upon your unfortunate plight. The USA is still the worlds largest economy with opportunities everywhere (more than double the number 2 position Japan), it might not be in Real-estate but there are many business people having a great 2008 right now. Rich Canadians... this was the comment that was laughable. With a population of 35 million people, and a tax rate well above the USA most Canadians aren't rich, we're more over-regulated in just about every industry than our counterparts in the US. I hardly think that the USA is at any risk of being bought up by us rich Canadians "eh!"

[Charlene]

This woman, who is ill with cancer and who *didn't sell the house*, is being harassed by people who have read the original article and your reporting of it. Had you a heart you'd delete this entry.