Villa Firenze is a mega-mansion in Beverly Hills. In 2017, it was placed for sale for the price of $165 million, making it the most expensive property for sale in the United States at that time. However, it did not have any buyers and was taken off the market.
The huge property was relisted in 2020 for $160 million, but it was still having issues attracting buyers. Instead of leaving the property up for sale, the owner/seller, Steven Udar-Hazy, decided to take a different approach to the sale and arrange for an auction sale for the property. He engaged Concierge Auctions to run an auction process from January 26 to February 2.
The auction did not use a reserve price; a simple highest-bidder-wins approach gave him some finality in selling the home. Ultimately, the final price was $51 million.
The auction itself set a new record: the most expensive house ever sold at auction.
Concierge Auctions is used to setting records, however. Villa Firenze marked its fourth consecutive world record. As its co-founder and CEO, Laura Brady, states: “The Concierge Auctions model identifies buyers and creates competition, which identifies value. We accomplish our sellers’ goals of speed and control while delivering liquidity at a market-driven price.”
More About Villa Firenze
Villa Firenze’s main villa was built in 1998 by William Hablinski Architecture. It has 20 bedrooms and 23 bathrooms in its 20,000 square feet. It also has a two-story guest house.
The entire Beverly Hills property sits on nine acres of land in what has been dubbed “the most exclusive guard-gated community in Los Angeles.” It has its own private street, and the estate opens to a courtyard that can fit up to 30 cars.
The mansion has huge gathering spaces, high ceilings, and arched doorways. It features a wine cellar, library, gym, home theater, media room, as well as more traditional areas, such as formal dining and living rooms, a family room, and a den.
It has a pool and corresponding pool house and tennis court. It also has its own private jogging trail.
The auction also included an adjoining, but technically separate, lot for additional development in the future.
Additional Details About the Beverly Hills Auction
While it may seem like the buyer got a significant discount on the house, the buyer actually paid more for the property than you might think based on the $51 million price tag. First, the buyer must also pay a buyer’s premium, which is over and above the bid price. The premium covers marketing costs. In this situation, the buyer’s premium essentially doubled the final sticker price.
The buyer also agreed to buy some of the personal property and fixtures in the home. Ultimately, the full cost (without considering the buyer’s premium) was around $60 million.
The auction process brings excitement and urgency in the purchase process, which is often not the case in more traditional real estate transactions. For a home that was sitting on the market off and on for four years, it certainly got the property sold.
About Concierge Auctions
Concierge Auctions is the largest luxury real estate auction marketplace in the world. It focuses its efforts on providing auction services specifically tailored to one-of-a-kind properties.