Even Entertainers Can Lose Money in Real Estate

In the upper-echelons of real-estate we brokers may mention a property’s provenance. Such properties may secure an inflated value due to past or present ownership. The Bob Hope Residence in Palm Springs had his ownership as provenance and being designed by John Lautner an addition premium due to the design and demand for Lautner designed residences with one of his most famous being The Chemosphere and used in multiple moves including Charlie’s Angels and Body Double.

Thus it was a surprise when bold-faced names Keith Richards and his wife Patti Hansen took a loss on their well-pedigreed co-op at One Fifth Avenue in New York City’s Greenwich Village.

First the building; in addition to the address having tone in a city where such matters it is truly a beautiful and striking pre-WWII building. Located on the southern end of 5th Avenue and adjacent to Washington Square Park, One Fifth Avenue is a building that is always in demand and desirable.

The apartment, a duplex i.e. 2-floors features a large open dining/entertainment space, a leather and bronze open staircase and three private terraces — including two that overlook Fifth Avenue and Washington Square Park. The unit was purchased in 2014 for $10.5M and listed at $12.32M. The apartment recently sold for $9M; a substantial discount from the asking and a $1.5M loss from the purchase price 4 years earlier.

Concerning the provenance; not only owned by Keith Richards, a previous owner was art curator/collector Sam Wagstaff, photographer Robert Mapplethorpe’s former lover. Thus while one can place a value on location, ownership, provenance, history and so forth the reality is the market will provide true guidance.

I hope Keith Richards did not say at the closing “I can’t get no satisfaction“.

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