After four years on the market, an overpriced 60,000-square-foot Hillsboro Beach estate known as “Le Palais Royal” was recently auctioned off. First listed for a then record-setting national price of $139 million in 2014, the mansion was quickly bumped up to $159 million the following year. The listing was withdrawn in 2016/17 after no buyers came forward. It went to auction via Concierge Auctions, in conjunction with Ralph Arias of ONE Sotheby’s International Realty, on November 12.
Thanks to property records that were updated on December 28, the final selling price of the estate came in at $42.5 million, a 73% reduction from the 2015 asking price, said Forbes.
Designed by Miami-based architect Denio Madera, the home features 11-bedrooms, 22-bathrooms with over 60,000 square feet of space, a private IMAX theater, putting green, multiple pools and waterfalls, and 22-karat gold leaf detailing on pretty much every surface. The estate sits on five-acres that stretches from the oceanfront to the Intracoastal Waterway and features docks for two megayachts.
The new owner is an LLC affiliated with former Teavana creators, Andrew and Nancy Mack. They sold Teavana to Starbucks for a reported $620 million in 2012.
The seller, Robert Pereira, founder of the Massachusetts-based construction company Middlesex Corp., possibly lost tens of millions of dollars on the transaction; Pereira told The Wall Street Journal in 2015 that the build costs exceeded $100 million.
Auction representatives previously stated that the auction had attracted 11 bidders, with over 29 tours of the estate and over 1,800 interested parties. Even though the final sale did not meet the nine-figure asking price, the deal smashed records for the most expensive home to be sold at auction in the US.
Price cuts tend to be a great leading indicator and give a forward-looking view into the real estate market. So, when one of America’s most expensive homes experiences 73% collapse in asking price from 2015, it probably signals that a luxury real estate market crash could be ahead.