Here's Why Celebrities Often Live in the Same Apartment Building as Other Stars
Celebrity real estate deals are worlds away from the transactions we mere mortals experience when buying, selling, or renting a home: For starters, there are the exorbitant prices of these pads; the extensive security needed to protect those who inhabit them; and the secluded locations that put privacy and safety at the forefront. Being that celebs clearly have different real estate desires than your average home buyer, it should also come as no surprise that the way in which these deals are made is similarly outlandish. Want to see how the other half lives? House Beautiful has all the details you need to know about these tight-lipped undertakings, thanks to luxury real estate attorney and founder and CEO of One and Only Holdings, Edward Mermelstein. Here are 5 big reveals about the fascinating world of celebrity real estate.
Why $25 Million is the Spending Cap for Most Celebrity Home Buyers
“There are very few celebrities that can afford to purchase above [$25 million], as it typically requires an all-cash purchase,” reveals Mermelstein. “Your net worth would have to be substantially above $100 million to consider a home that costs more than $25 million.” Some recent examples of costly celebrity home purchases include Kylie Jenner’s $36 million abode in Holmby Hills, and Justin and Hailey Bieber’s Beverly Hills mansion, which they spent $25.8 million for last summer.
How Celebrity Home NDAs Work
The primary goal of having real estate professionals sign NDAs “is to maintain strict confidentiality for all parties involved in the transaction,” Mermelstein explains. As such, “the attorney drafting these documents will ensure that those who are signing it will take the document very seriously.” And, as Mermelstein adds, “most real estate professionals understand that they are signing enforceable contracts with hefty penalties.”
Why Celebrities Often Want to Live in Buildings That House Other Stars
You may have wondered why some apartment buildings are home to a bevy of stars, like 443 Greenwich Street in Manhattan, which counts Harry Styles, Justin Timberlake, Jessica Biel, Jake Gyllenhaal, and Meg Ryan among its residents. Mermelstein says that celebrities seek to live in star-studded buildings for purposes that extend beyond “higher level of security and confidentiality.” In fact, it’s primarily for monetary reasons, as “celebrities tend to increase property values, not only for their own unit, but for the building as well.” The aforementioned Tribeca condominium is a “prime example of how celebrities can supercharge values in an ultra private condominium,” he explains.
What Celebrities Look for in a Potential Home
The two most important factors celebrities tend to look for in a potential home, according to Mermelstein, are “investment potential and security” because “most celebrities are concerned for personal and family safety.”
How Celebrities Go About Finding These Properties
While we tend to scour sites like Zillow for hours on end, “celebrities have business managers, as well as attorneys, that are well versed in the business of real estate,” says Mermelstein. “They tend to build a strong network of brokers and other real estate professionals that keep them updated on secure buildings that have exceptional potential for appreciation.”
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