Friday, January 22, 2016

Larry Flynt makes an offer on the Playboy Mansion subject to an appraisal. I ran some comps for quick valuation

Larry Flynt has reportedly made an offer on the Playboy Mansion for $40,000,000. He then reportedly doubled that offer to $80,000,000 on the condition Hugh Hefner leaves the property. Based on both of their strong personalities I don't see that deal going through. If Larry Flynt really wants the property he'll have to use a straw man so Hef doesn't know he's buying it. A development company or LLC might be the best idea.

Larry's offer is contingent upon the property appraising. I decided to run some comps.

MLS CMA comparable sales. Living area 10,000 to 50,000, lot size 2 to 8 acres, sold within the last three years within a four mile radius. The best comp is 384 Delfern for $59,000,000 which is superior based on home, lot size. 100 N Carolwood also a good comp but inferior location on Sunset with all walls facing the street sold for $18,000,000 when the market was slower. Another good comp is property directly next door 2.5 acres for $32,000,000 10281 CHARING CROSS RD
LOS ANGELES CA 90024. It also has a large home on the property.
http://marycummins.com/playboymansioncomparables.pdf

All sales including MLS and private sales. Not all sales are real sales.
http://marycummins.com/playboymansioncompspublicrecords.pdf

Based on all these sales and knowledge of the area if this property weren't the Playboy Mansion I think Larry Flynt's first offer of $40,000,000 would have been fair but low. Because it is the Playboy Mansion, is located away from Sunset, abuts the golf course, I think $80,000,000 was more than fair.

The real issue here is the huge loans on the property. There is a loan for $110,000,000 done in 2014. I think Playboy Inc may have taken the loan on the property to pay for bills. This is also why Hef wants to sell the property. If that $100M loan is real, not cross collateralized, they'd have to do a short to sell,

A year or so ago when Hef was engaged to his wife there was a prenup agreement. That agreement included his fiance getting a house in Hollywood Hills. The purpose of that house was for Hef and/or her to live there "when" they sell the mansion. Hef has obviously seen this coming for years. Playboy is not doing as well as it once did because there is so much free and cheap hardcore porn on the Internet. I think Larry did a better job transitioning toward the Internet now that print media is doing so poorly.

Here is my last article on the mansion.

http://marycumminsrealestatemarycummins.blogspot.com/2016/01/playboy-mansion-at-10236-charing-cross.html

I will update these articles if there is indeed a sale.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.

Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, single family, condo, pud, hud, fannie mae, freddie mac, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls,

No comments:

Post a Comment

USC Remembers: October 7th program and vigil, by Mary Cummins USC Alumni in Los Angeles, California

Attended the USC Remembers October 7th program and vigil today.Sponsors: USC Hillel, Chabad at USC, Trojans for Israel, Tikvah. Cosponsored ...