LA mansion for sale faces April 1 tax deadline
The owner of this over-the-top, seven-bedroom and 11-bath mansion in Los Angeles is prepared to accept $6 million less than what he paid for it less than two years ago — all to beat a ticking clock.
The home features a Kobe Bryant-themed basketball court, car showroom and a 70-foot infinity pool that appears to float some 45 feet above the mountainside, and it’s on sale for a reduced price of $38 million.
If it doesn’t sell by April 1, the property would be subject to a looming new, local mansion tax, which goes into effect next month and could cost the owner a further $2 million.
The grand living area opens to the outdoors with 22 foot ceilings, a 10-ft long fireplace, and a giant wall covered in living green moss that extends across three levels of the home.
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The Brentwood estate, now known as the Star Resort, was built by veteran spec developer Ramtin Ray Nosrati, who sold it back in 2021 for $44 million. According to public records, the almost 16,700-square-foot residence was purchased by the trust of wealthy investor Jeffrey Feinberg, who runs Feinberg Investments.
About a year after buying it, Feinberg put the home back on the market for $48 million but couldn’t find any takers. Feinberg brought in David Malka of Ikon Advisors to implement a more aggressive pricing strategy, and the original asking price was chopped down $10 million, or almost 21%. To put that price cut into perspective, it amounts to the home dropping almost $64,000 in value every single week for 94 weeks straight since Feinberg bought it.
One wall of the dining room is a 1,000 gallon salt water aquarium with views into the kitchen on the other side.
Yann Ippolito
Malka told CNBC yearly real estate taxes on the Star Resort run his client around $550,000 a year, plus about $20,000 a month in utilities.
“Plus, the staff and so on, so probably a million dollars of expenses [per year],” Malka said.
Jutting out from the lowest level of the home is a Kobe-Bryant-themed half basketball court.
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Trying to unload an expensive mansion in the midst of a banking crisis with the LA real estate market softening and uncertainty looming large isn’t exactly great timing.
Feinberg, like all luxury mansion sellers in LA, is also contending with the new mansion tax approved by voters in November. The ULA tax, as it’s called, was designed to “fund affordable housing projects and provide resources to tenants at risk of homelessness,” according to the city of Los Angeles website.
It’s levied on the seller as a transfer tax upon the sale of a home, or any real property, that trades for $5 million or more.
The home’s impressive foyer includes double height ceilings and glass walls that open to the pool deck and outdoor bar.
Yann Ippolito
For homes priced between $5 million and $10 million, sellers will have to pay the city 4% of the total sale price. For real estate trading north of $10 million, the rate increases to 5.5%.
The new tax is on top of the city’s current 0.45%…