Luxury Foreclosure Sells at 60 percent off

A 7-bedroom, 11-bathroom estate in Tarzana, Los Angeles, on Brewster Drive, has just sold for a 60% discount at auction. The bidding for the property, which had been up for sale at almost $10 million just last year started at $2.1 million and quickly rose to $4 million. The winning bidder, a Mr Sanjiv Chopra, a businessman in the clothing business plans to live in the home with his family.The home is almost finished and will require some $250-300,000 spending to completely finish off.

The property was auctioned off by Kennedy Wilson Auction Group, who had a mere $25,000 budget to sell the property, which may perhaps be reflected in the price. According to the LA Times, Mr. Levant of KWA Group says,

“There apparently are still lots of people interested in purchasing mansion-size homes. They just don’t want to spend $10 million to $20 million for the privilege.”

The property includes $250,000 worth of solid walnut floors, 38 French doors, 5 fireplaces, a home theater, a wine cellar, fitness room, an elevator and a 16-car subterranean parking garage. The amount of bank owned property for sale continues to grow – even in the higher price bracket and this gives an indication of the new pricing levels. This was a spec house and represents a substantial loss for the builder – and lender (First Regional Bank), as I understand the cost to build was in excess of $7.5 million. Ouch!