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
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