Playboy mansion listed for US$200 million sold to its neighbour

LOS ANGELES (June 7): The famous Playboy mansion which has hosted countless exotic parties is set to receive a new yet familiar owner — its next-door neighbour, according to a recent report by The Wall Street Journal.

The mansion is the long-time home of Playboy founder, Hugh Hefner who purchased the house in 1971 via his Playboy Enterprises for US$1.05 million.

Private-equity firm Metropoulos & Co principal, Daren Metropoulos who bought the adjacent property to the mansion in 2009 for US$18 million is now in contract to purchase the 1927 mansion.

The home was listed for US$200 million (RM816 million) by broker Mauricio Umansky of The Agency, as well as Gary Gold and Drew Fenton of Hilton & Hyland.

The 20,000 sq ft Playboy mansion has 29 rooms, including 12 bedrooms, on 5 acres, according to the sales listing. It is also one of the few private residences in Los Angeles with a zoo licence. Heffner added a heated swimming pool and a grotto in the 1970s.

“I am not as interested in the fame of the mansion earned over the past four decades but instead, I am more keen in preserving its architectural pedigree since the architect was none other than Arthur Rolland Kelly who has designed hundreds of homes in the Los Angeles area,” said Metropoulos in a statement, who declined to disclose the purchase price.

President of Hilton & Hyland, Jeffrey Hyland said the price for the property was “nine digits” and is the all-time record for the highest-priced residential sale in Los Angeles with multiple offers for the property.

The report also noted that the sale comes with one unusual caveat – Hefner, 90, will be able to stay in the house for as long as he lives.

After Hefner’s tenancy ends, Metropoulos intends to connect the two estates into a combined 7.3-acre compound, said a representative for Metropoulos.

Nonetheless, the mansion is long past its prime and is in need of renovations, said Hyland.

The report noted that the sale comes amid a boom in US$100 million-plus listings, with more than 27 properties listed around the world for US$100 million or more, compared with 19 last year.

“Properties in that price range can be unsold for years, but the Playboy mansion was sold in just five months,” the report said.

Meanwhile, president and chief executive of Miller Samuel Inc, Jonathan Miller commented that based on the price per square foot for luxury properties in the Los Angeles area, the home would be valued at closer to US$27 million.

A Los Angeles real estate agent who was not involved in the transaction, Stephen Shapiro said much of the estate’s value is in its acreage and location in the prime Holmby Hills.

“The land alone could be worth US$100 million, he said, but the asking price of US$200 million was ambitious considering the requirement that Hefner remain in the mansion. I thought it was hard-pressed for somebody to spend over US$100 million and not know when they were getting their house,” he said.

He noted that the high-end Los Angeles market was slow at the beginning of the year but has picked up over the past several months, with several sales above US$30 million. There are currently several homes listings priced above US$100 million or more in Los Angeles.

Do not ask your BFF about the value of your home. Go to The Edge Reference Price to find out.