A no-reserve auction held late last month has resulted in the purchase of a mansion in the Doheny Estates neighborhood of Los Angeles for $6,526,000, or roughly 20% of the original listing.
The sale comes on the heels of a record-breaking year for the Southern California housing market, where high demand and low supply fueled unprecedented closing prices.
Top bidding went to Michael Shabani, a real-estate investor and owner of Crown Equity, who made headlines in October with the sale of a $15-million retail space in West Hollywood.
Reimagined by Grand Prix motorcycle racer-turned-developer John Kocinski, the hilltop mansion at 9240 Robin Drive was completed in 2019 when it first arrived on the market.
In December 2020, the property was re-listed at $15.8 million and then reduced to $13.5 million earlier last month before finally hitting the auction block two weeks ago.
According to Fogarty, a luxury real estate specialist in Los Angeles, says that severe price disparities are not common in Los Angeles and more indicative of the auction process. (PATRICK FOGARTY | HILTON & HYLAND)
Properties selling for less than an original asking price is not an altogether uncommon occurrence, specifically those sold through no reserve auctions.
However, such a substantial disparity between the original and final price is far less frequent, especially in a market as competitive as Los Angeles.
“This is what can happen at a no reserve auction,” says Patrick Fogarty of Hilton & Hyland, who represented Mr. Shabani. “It’s just the nature of these types of sales.”
Coming in at just under 8,000 square feet, the three-story, Mediterranean-styled estate consists of four bedrooms, eight full bathrooms and three half baths, as well as an 800 bottle wine cellar, movie theatre and library. The property also boasts a grand porte-cochére, heated outdoor pool and panoramic views of the city.
Doheny Estates, located on the west end of the Hollywood Hills, has remained one of the most sought-after neighborhoods in Los Angeles, with recent sales in the area going for upwards of $30 million.
The auction was conducted on-site, without reserve, by Decaro Auctions International.
