Man buys mansion just to tear it down

Everybody has a dream home, but for some people, it's all about finding the perfect piece of property first.

By Mai Ling at MSN Real Estate Aug 18, 2009 9:31AM

Don't you hate it when you buy this spectacular house, but you just want more?

 

The Wall Street Journal recently reported that Pacific Investment Management Co. "Bond Guru" Bill Gross plans to join the three other billionaires who live in the small, gated community on Harbor Island in Newport Beach, Calif., after buying a bayfront home there for $23 million.

 

The 11,000-square-foot Georgian Colonial home with nine bedrooms and 12 bathrooms was built in 1979 on a double lot with 112 feet of water frontage. But alas, he's tearing it all down -- to build his own mansion, according to WSJ.com.

 

Reporter Sara Lin offers some insight into the deal in this video:

 

 

It's gives me hope that in a state where there were 124,874 foreclosed homes on the market in July, and where Playboy founder Hugh Hefner loses $10 million in a home sale, there is still property that's considered a rare find, and a buyer willing pay for it -- not once, but twice.

 

Apparently, Gross, co-founder and chief investment officer at Pimco, did try to be sneaky about the deal, purchasing it through the Monte Carlo Trust -- which may not have been so sneaky after all, since Lin says Monte Carlo is actually the name of the street he now lives on with his wife in the Irvine Cove neighborhood of Laguna Beach, Calif.

In other high-end real estate news, Lin also discusses the recent sale of a $25.9 million Southampton, N.Y., home that the government seized from hedge-fund manager James Nicholson in March.

 

Nicholson, president of Westgate Capital Management LLC, is accused of bilking at least $150 million from investors through a Ponzi scheme. He bought the 10,000-square-foot home with nine bedrooms, nine bathrooms and 222 feet of oceanfront for $27 million in 2008, which kinda makes the feds look pretty savvy about the real-estate market.

 

Although they put it on the market for $33 million after seizing it, considering the state of the luxury real-estate market, they nearly came out ahead at that price. I am impressed.

 

Lesson for the day is: If you're involved in finances, you'd really rather be considered a bond guru than a bilker.

 
231Comments
Aug 18, 2009 9:03PM
Aug 18, 2009 8:56PM
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I WOULD GUESS THAT AT LEAST 20% OF THE IDIOTS THAT ARE RIPPING ON THIS GUY HAVE MADE MONEY OFF OF HIS BRILLIANCE IN THE BOND MARKETS.  YOU OWN A 401k OR STATE PENSION PLAN???  ODDS ARE THAT BILL GROSS MAY MANAGE A PORTION OF YOUR RETIREMENT PLAN...LUCKILY FOR YOU,  HE HAS MADE YOU A 8.2% AVERAGE OVER THE LAST THREE YEARS..THE ONLY GREEN ON THE STATEMENTS....
Aug 18, 2009 8:49PM
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SANDOLLARQUEEN...HAVE YOU EVER HEARD OF A BOND BEFORE??   THE GUY HAS CREATED MORE HONEST WEALTH IN THIS COUNTRY THAN YOU EVER DREAMED OF...
Aug 18, 2009 8:44PM
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HEY SEA 25...SHOULD WE TEAR DOWN THE PYRAMIDS????
Aug 18, 2009 8:31PM
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YOU ALL BAG ON A GUY WHO HAS AMASSED HIS WEALTH FROM PRUDENT, CALCULATED, PATIENT BOND MOVES OVER 30+ YEARS.  MOST OF YOU HAVE NO UNDERSTANDING WHATSOEVER WHAT A BOND IS SO U LUMP HIM IN WITH HEDGE FUND MANAGERS,  BANKERS,  POLITICIANS ETC...BILL GROSS IS IN A DIFFERENT CATEGORY FRIENDS...PLEASE DONT DEGRADE THIS MAN AS HE IS TRULY A PATRIOT...YOU MAY NOT AGREE BUT IF YOU TRULY UNDERSTOOD HIS INDUSTRY YOU WOULD PROBABLY VOTE FOR HIM......

Aug 18, 2009 8:20PM
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How can anyone justify spending that kind of money. I wonder if someone like that ever thinks of the children right here in the states that are dying from starvation or lack of medical care. How does he sleep at night? Hummm, maybe he has donated a few computers or bought uniforms for a little league team. Chump change for someone with that kind of money to throw around. Maybe he could put the house up for auction and donate all proceeds to children in need. There are so many options. He will not be able to take it with him. I will pray for him.
Aug 18, 2009 8:20PM
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Who cares what this guy does with his money?  Who are you people to judge this man?  Do you know him personally?  Get off your jealous butts and work on your own lives.  If wants to tear the house down and put a lawn chair there and hot dog stand that is his business. 
We were all given the gift of free will.  We all make our own choices, good or bad.  Count your blessings, be grateful for what you have instead of focusing what you don't have.  As bad as you think you may have it, there is always someone out there who is worse off than you.

Envy is the art of counting the other fellow's blessings instead of your own.  ~Harold Coffin



Aug 18, 2009 8:15PM
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Open-mouthed so he got his 20,000 sq feet of space i got the whole world to roam around freely. millions of sq miles.  lol! lmao!
Aug 18, 2009 8:07PM
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Open-mouthed it will all trickle down. first to real estate then to builder on to labor and money goes to mexico or dwn to builder then builder feeling wealthy buys mercedez benz and ceo gets his bonus. think of all the variables.
Aug 18, 2009 8:02PM
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This is an absolutely beautiful home, contrary to what someone else said. And, I normally HATE these huge monstrosities.  I agree with the posters who suggest that the home be given away, sold cheaply maybe, or just torn apart carefully and GIVEN to one of those

salvage stores so the parts can be sold at low prices for people like myself, for one, who

cannot normally afford some of the lumber, fixtures, etc. that go into these huge homes.

This man definitely has no scruples, I am so sick of these greedy, ignorant people.

Aug 18, 2009 7:51PM
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This story pretty much epitomizes everything that is wrong with our society. Simply put, there is no excuse for anyone to live like this ...  it's disgusting! Also, this illustrates how things go awry when Capitalism is unchecked ... many people can be shamefully greedy and there is no limit ... no boundaries ... and excess to the extremes. It makes me sick!  
Aug 18, 2009 7:48PM
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I hope they tax the living daylights out of him so Newport Beach can "share the wealth" just like Obama was saying.... one way of taking from the rich to give to the poor.  Thank goodness for Prop 13
Aug 18, 2009 7:30PM
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Must be nice!  My home has been on the market now for nearly 17 months and we keep lowering the price to try to get someone to bite on it...only have a few more months left before we move don't know what we will do if we don't sell!  I understand that people with 23 million to just throw away don't really care about a person trying to sell a $225,000 house but it really just makes me nauseous to read about...OK yeah I can admit it I am a bit jealous!  I do hope for him that he does get the home of his dreams...

Aug 18, 2009 7:24PM
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This is why many say to tax the rich till it hurts.  He obviously has more money than he knows what to do with.  More money than brains.   I hope he enjoys the new house once it is done.
Aug 18, 2009 7:15PM
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That's old news! I tore down three houses and put up a hotel... On Baltic Ave. All kidding aside, that house in material and labor was probably worth no more than 1.5 to 2 mil. He paid for the property (location, location, location) and the prestige of a gated community. I do hope he has some money left over to help out those that are less fortunate. But wait! He's part of the 2% of the people that support the rest of us slobs through Federal Taxes (tongue in check). Then again, if he can do this, he is probably not paying enough. Just a thought, not a sermon.
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Most of you posters have very poor thinking and guarantee most of you are poor, period. The guy has made his fortune off of buying and selling bonds. Almost all of you work for a company of some sort or another. Where do you think money comes from? You? Wake up. Companies have to sell bonds so they get money today so you get your paycheck on a regular basis instead of waiting for profits to mature. Don't think it applies to you because you work for a government agency? Wrong! Think again. Government is so far in debt and has been for years it gets it's money from bonds too. This guy has helped many people to have jobs and most of you don't even have a clue.

 

The guy deserves what he buys. Do you?

Aug 18, 2009 7:10PM
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I think I'll buy the house he ends up building and tear it down to put up a nice little cabin about 800 sq feet or so with an outhouse.
Aug 18, 2009 7:10PM
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hey..here's a thought for people blowing smoke about doing good deeds, but never do; PAY to have the house MOVED as a donation for say a woman's outreach, or troubled youths. or a few homeless families that could give back by working, say a farm or contractor.

demolishing a home is destroying our resources, our communities our families and our hope that a better tomorrow will come...NAMASTE

Aug 18, 2009 7:08PM
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Open-mouthed the guy isnt arrogant he is a victim of the roaring 09. i can imagine how confused or maybe even feeling terrible guilt nown, unless he is a total psychopath. so what if he had been donating to charity? madoff and stanford may have done that many times.
Aug 18, 2009 7:06PM
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