After nearly three years of searching, Beyonce and Jay Z purchased a Bel Air mansion in 2017. The mansion which sold for $88 million was the most expensive 2017 real estate sale in Los Angeles, California.
Beyonce and Jay-Z’s New Mansion
Despite being previously outbid for other properties Beyonce and Jay Z finally secured a property in 2017. They were outbid by the founder of Minecraft, Markus Persson, and designer Tom Ford. The competitive market in Los Angeles sees big names on average fighting for impressive properties.
The 30,000 square foot mansion is in the suburban Bel Air neighborhood of Los Angeles. It was purchased for an astounding $88 million, breaking the 2017 record for the most expensive home sold in the area. A small sum to pay for the billionaire couple.
Many real estate agents look at sales like these and can only dream about the commission. Unfortunately, after a while commissions are at some point capped or are at a lower rate due to the sheer size of the purchase. However, with an $88 million dollar sale, the commission easily breaks seven figures.
The property features six ultra-modern buildings including staff quarters on the premises. Part of the property is encompassed by a basketball court and four pools. There is a 15 car garage, which considering the couple’s bank account, could soon be filled.
To purchase the home they took out a $52 million dollar mortgage. Their monthly payment would total around $250,000 per month, for the next 30 years. Surprisingly, this is an improvement from their monthly rent payments of $400,000 in Malibu.
Designs by Paul McClean
The home was developed by Dean McKillen and designed by Paul McClean. McClean designed a home purchased by Calvin Klein and most recently agreed to assist in the making of a $500 million dollar home.
The property will take up 104,000 square feet, of which 74,000 square feet will be used as living space. The master bedroom alone is set to take up 5,000 square feet.
The luxury home will feature a casino and lounge with walls made of jellyfish tanks. Real estate agents debate whether the sale of this property is even viable. The price alone has many in awe, however, for those wishing to flaunt their wealth this home will be a crown jewel.
Real Estate in Bel Air
The LA real estate market continues to appreciate in value. In the Beverly Hills area, home prices have nearly doubled. The market is receiving new buyers from areas like Asia and Europe. In addition to foreign investors, new buyers are flowing in from the northeast of the United States.
High appreciation and the ability to withstand economic difficulty make Beverly Hills desirable for any educated investor. Which is reflected by the number of people in the area with masters, medical and law degrees. This comes as no surprise since the area is home to some of the wealthiest people in California.
Bel Air is the third most expensive neighborhood in Los Angeles, the others being Brentwood Heights/Mount St. Mary’s College, and Pacific Coast Highway/Entrada Drive. Real estate vacancy is at nearly 24.2% this is due to a combination of regular vacancy and a large number of construction projects underway. The average real estate price in Bel Air is $3.4 million, more expensive than 99.9% of other real estate markets. Even though the area seems expensive, LA overall is seeing increasing property values as well. With some areas regularly seeing listings for $100 million.
As we continue to see home prices increase due to foreign investment, sellers are attempting to become more open to foreign markets. Foreign capital flowing into the US has definitely attributed to the rising value of properties. The only question now is whether or not the market is stable enough. The mortgage market remains in the periphery of those who still remember the factors which built up to the 2008 crisis. However, should policies remain consistent the housing market may remain stable.