It’s the lucky mansion owner who lives next-door to one of these compound builders. The L.A. Times reports that they are paying more than market value to get the neighbors to leave.

With the high-end real-estate market stumbling toward recovery, and the number of millionaires back to boom-time levels, we suppose we weren’t too surprised to read that there’s been a flurry of activity in Los Angeles’s “compound market.”In a weekend story, the L.A. Times reports that more super-rich folks, in search of “privacy,” are building mega-compounds by buying the mansion next door, particularly on L.A.’s West-Side and in Malibu. As the super-rich get super-richer they’re looking for new ways to “demonstrate their status,” reports Lauren Beale.The “hottest commodity” in L.A.’s ultra high-end market is the compound, writes Ms. Beale. The mansion next door could be used for fund raisers or big parties, says one real-estate agent quoted in the piece.“The middle class may be able to buy Louis Vuitton bags and nice holidays, but they can’t buy two mansions in Bel-Air. This is a way the global elite differentiate themselves,” Elizabeth Currid, an assistant professor at USC who studies cultural shifts among the wealthy, is quoted as saying.
June 14, 2010, WSJ

Link to article