Archive for “November, 2016”

Buyers Line Up to Purchase Laguna Beach Mansion Sold by Platinum Luxury Auctions

An impressive crowd of ten bidders gathered in the living room of a hilltop estate in Laguna Beach on November 18, 2016, in order to participate in a live auction for the chance to become the multimillion-dollar property’s new owner. Platinum Luxury Auctions, a real estate auction firm specializing in the sale of luxurious properties, was hired by the homeowner to conduct the auction in cooperation with broker John Stanaland of HÔM Sotheby’s International Realty, the listing agency of record.

The price paid by the highest bidder has not yet been revealed, but a Platinum spokesperson noted the winning bid “almost doubled” the auction’s $2 million reserve price.

Platinum’s auction-marketing campaign garnered significant interest from buyers in the U.S. and abroad, with 146 inquiries, 83 on-site property previews and more than 39,000 visits to the property’s webpage during a 5-week period. Coverage of the ocean-view home appeared in the Wall Street JournalThe New York TimesLos Angeles Times and in television commercials on major news networks.

“To have ten bidders for the auction of a property that sat on the market for so many years – especially at the height of a significant political shakeup in the country – is a tremendous feat,” said Kevin Vaughan, Platinum’s project manager for the transaction. “In addition, I believe only one bidder was an investor, meaning the audience was nearly entirely comprised of end-users. It’s certainly a testament to the quality of Platinum’s buyer database and the effectiveness of its luxury auction platform.”

Prior to the auction, the Orange County residence spent more than 6 years on the market, starting at an asking price of $7 million, which was gradually reduced to approximately $4.9 million. Custom built in 1996 and carved into the hillside, the tri-level home features postcard views of the Pacific Ocean. In total, the estate offers 7,200 sq. ft. of living space, seven bedrooms and five baths. Highlights include a gourmet kitchen, home theater, saltwater fish tank, fitness room with sauna and an elevator servicing all three floors.

“With one exception in 2013, we have sold every property we have offered for luxury auction in California,” stated Trayor Lesnock, Platinum’s founder and president. “It’s certainly a fertile market for our platform, and we are expanding our business efforts there going forward.”

For more information on this sale or other upcoming luxury auctions, please contact Platinum Luxury Auctions at 800.262.5132 or visit PlatinumLuxuryAuctions.com.

Platinum Luxury Auctions Succeeds with Sale of Park City Area Home Sites

The upscale Wolf Creek Ranch community in Heber City, Utah has enjoyed a string of new sales as a result of the planned September auction of up to four buildable lots located within the subdivision, according to Platinum Luxury Auctions, the firm that managed the transactions. Platinum is the Miami-based real estate auction firm responsible for developing the luxury auction® model for the non-distressed auction sale of multimillion-dollar properties on behalf of wealthy owners. The auction house worked in cooperation with listing brokerage Summit Sotheby’s International Realty, who served as the broker of record for the sales.

In August, Platinum and Summit announced the planned auction of up to four buildable lots within the development, which is located approximately 15 miles south of Park City. One lot was to be sold to the highest bidder without reserve, while the remaining three lots were offered subject to the seller’s acceptance, meaning that unlike the auction of the first lot, the highest bids could be accepted, countered or rejected.

However, direct negotiations began for one of the properties immediately prior to the planned auction date of September 30 – which quickly led to the negotiation of two more of the lots – in lieu of a live auction sale. “There’s a saying that, ‘Sometimes the best auction is the one that doesn’t happen,’ meaning that the auction event itself was not needed because the mere threat of the auction was enough to produce a sale,” stated David Ashcroft, Platinum’s director of business development. “That is essentially what occurred here, and it resulted in three of the four lots being sold to the seller’s satisfaction, with the sale of the final lot still in negotiations with a small handful of buyers.”

Individual lots within Wolf Creek are large, starting at about 160-acres in size. While some of these parcels previously achieved prices around the $1 million mark, sales within the development cooled significantly in recent years, with pricing adjusting downwards. Final figures for the three lot sales have not yet been released, but Mr. Ashcroft reported that each of the sales, “exceeded the price threshold established by the seller at the outset of the auction process.”

Occupying 13,200 private acres and with only 80 home sites, Wolf Creek Ranch offers its residents a sense of peace and privacy amidst Utah’s beautiful landscape. Community amenities include a well-appointed owners’ lodge, an equestrian center, and even an on-site trout-fishing guide.

Those looking for more information on these sales – or inquiring about the status of the remaining auction parcel – may contact Platinum at 800.262.5132 or visit UtahLuxuryAuction.com.

Colorado’s Historic Redstone Castle Sold by Platinum Luxury Auctions

Redstone, Colorado’s historic Redstone Castle has been successfully sold following a live auction held at the property site on October 7, 2016, according to Platinum Luxury Auctions, the auction house that managed the transaction. The sale was held in cooperation with Aspen-based brokerage Aspen-Snowmass Sotheby’s International Realty, represented by listing agents and top producers Ted Borchelt and Jana Dillard.

Although the price of the sale has not yet been released, representatives for Platinum stated that the high bidder satisfied all of the terms of the auction sale, and that the transaction should close shortly. The auction required that a reserve bid of $2 million be met in order for the property to be sold. The purchaser is also required to put forth an additional 10% in commissions and other transaction fees to consummate the sale.

“We have been quite impressed with PLA since day one!” exclaimed Borchelt, adding that he and the property seller interviewed several luxury real estate auction firms before selecting Platinum. “I cannot imagine the competition doing a better job.”

“We were incredibly pleased with the makeup of inquirers for this auction, which included two billionaires and a sizable pool of wealthy individuals from both U.S. and foreign markets. One would be hard-pressed to think any stone was left unturned in the marketing outreach,” stated Aaron Carmody, Platinum’s project manager for the sale. “Selling an historic property is never an easy feat, especially when that property is a 24,000 square foot castle that is largely original per its 1902 build date.”

To be sure, the property enjoyed a tremendous amount of exposure in the media, such as a televised feature during FoxNews Denver’s primetime evening segment, in addition to articles in Bloomberg, The Wall Street Journal and a series of local and regional publications based in and around Colorado.

A spokesperson for the Aspen-based company that owned and sold the property expressed satisfaction with the sale, stating via email that Platinum and Sotheby’s, “…put forth the best effort possible,” and that the company, “truly appreciated working with” the parties throughout the process.

While the company’s ownership originally had grand plans for the estate, those plans were shelved and the company instead decided to open the property for public tours, relying on the knowledge and experience of a caretaker who has lived at the Castle for nearly twenty years. The tours have maintained public interest in the Castle, continuing its long-held role as centerpiece of the small mountain hamlet of Redstone, located about 30 minutes outside of Aspen, CO.

Built in 1902 for John Cleveland Osgood, a powerful coal and steel industrialist who became the sixth wealthiest person in the country by 1900, the castle was named for the town of Redstone, Colorado, which was in fact founded by Osgood. Also known as “Cleveholm Manor” and “Osgood Castle,” the estate served as Osgood’s personal residence, and as such played host to members of the era’s high society, including American icons such as John D. Rockefeller, J. Pierpont Morgan and Teddy Roosevelt.

The buyer of the property is reported to be private businessman with other commercial property holdings in Colorado’s Roaring Fork Valley region. His future plans for the Castle are yet to be revealed. Additional information on the sale can be found at COLuxuryAuction.com or by contacting a Platinum associate at 800.262.5132.

Platinum Luxury Auctions’ Sale of California Ranch Closes at 114% of Appraisal

After previously reporting the East Ranch estate in California’s Redwood Valley was pending sale following a live auction held on the property site on September 17, 2016, Miami-based auction house Platinum Luxury Auctions has announced that the transaction has closed at a price of $6.215 million. The sale price is equal to 114% of the property’s most recently appraised value, according to an appraisal report furnished by the ranch’s owners. Platinum managed the sale in cooperation with listing agent Chris Iverson of Menlo Park real estate brokerage Dreyfus Sotheby’s International Realty.

“This closing marks our fourth consecutive auction sale in the state of California,” stated Trayor Lesnock, Platinum’s president and founder. “Ironically, we have yet to really focus our business development efforts there, but I expect that to change.” Platinum is also handling the upcoming auction of an ocean view mansion in Laguna Beach, CA, which is scheduled for sale on November 18.

With the plus-$6-million sale price, the auction’s reserve price of $3 million – that is, the lowest price for which the seller was obligated to sell the property – was more than doubled. “Many firms shy away from auctions with reserves, but this is an excellent case study for the results that are produced by a very effective reserve price, especially as opposed to the ‘bait-and-switch’ auction models we unfortunately see many firms using in today’s marketplace,” stated David Ashcroft, Platinum’s director of business development and a spokesman for the sale.

Mr. Ashcroft elaborated that many property auctions in today’s market are promoted as being “absolute” or “without reserve,” but instead of allowing buyers to truly name their price at a live bidding event – the hallmark of an auction with no reserve price – buyers for these auctions are aggressively pursued for bids and offers prior to the live auction sale. This turn of events sours many buyers on the experience, in some cases causing them to abandon their interest in the given property entirely. Further, many auctions are cancelled or withdrawn if these advanced bids or offers are not attractive enough to the seller. “It’s certainly a gray area,” Ashcroft added, “The irony is that the model is promoted as being better for the seller when in fact the opposite is true, as we see time and again.”

Conversely, listing agent Chris Iverson noted that he and his clients were drawn to the straightforward transparency and methodical management of Platinum’s auction process. “Platinum’s program was exceptionally well-managed from start to finish,” said Iverson. “In fact, I sincerely believe that Platinum’s management of the actual, day-of-auction bidding process added another $500,000 to $1 million to the ultimate sales price.”

More information on the sale is available at CaliforniaLuxuryAuction.com, or by contacting Platinum’s corporate offices at 800.262.5132.