Stan Druckenmiller Sells Greenwich Mansion For 20% Below Asking

Tyler Durden's picture

Last month, we reported that wealthy homeowners in one of America’s prototypical enclaves of wealth and privilege have begun to pull their stately mansions from the market as demand for high-end properties in Greenwich, Conn. Has plunged in recent years.

Despite sellers slashing prices, so far, only three Greenwich homes have sold for more than $10 million. In response, new listings have dropped 31% as sellers opt to wait out the gully in hopes of securing a higher price.

But as it turns out, one of those three homes belongs to Stanley Druckenmiller, the billionaire founder of Duquesne Capital, who sold it at a considerable discount, according to Bloomberg.

Billionaire investor Stanley Druckenmiller sold his eight-bedroom Greenwich mansion for $25 million, the biggest sale this year in a Connecticut town where high-end listings have been piling up.

 

It took a discount to seal the deal. The purchase price was 21 percent less than the $31.5 million the seller originally sought, according to the listing. Druckenmiller bought the 12,238-square-foot (1,137-square-meter) home in 2004 for $23 million.

 

Druckenmiller’s sale was the third in Greenwich this year for more than $20 million, and the second to find a buyer after the owner agreed to a price cut, according to data from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. There were 180 luxury homes on the market in Greenwich at the end of the third quarter, the firms said.

Once upon a time, a nonexistent income tax (Connecticut became the last state in the US to institute an income tax in the early 1990s) and low property taxes - not to mention the gold coast tableau of beautiful beaches and lush greenery - made Greenwich one of America’s most sought-after zip codes.

But two income-tax hikes pushed through under Democratic Gov. Dannel Malloy, not to mention a looming fiscal crisis, have seriously diminished Connecticut’s popularity. The fact that Connecticut is a mostly suburban state – at a time when young people are migrating toward urban surroundings – certainly isn’t helping property values.

There were only five sales for $10 million or more in 2015 and 2016, the slowest pace in this category since at least 2008, and less than half the average, according to brokerage Houlihan Lawrence. As of late October, there were nearly 40 properties listed for $10 million in and around Greenwich. At the current pace, it would take at least seven years to sell them all at the current pace.

One would think, with stocks at record highs, the “wealth effect” would lead to an increase in purchases of luxury homes. However, perhaps the most significant factor affecting the Greenwich real-estate market is a shift in trends. Younger couples favor urban environments – meaning they’re more likely to opt for a Manhattan apartment instead of an expansive home in the suburbs.

As one real-estate agent put it, small is the new big.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
auricle's picture

Yah, but it sold for 100% of last years price. So I'd say Stan did just fine!

wee-weed up's picture

 

 

Hey, rich fucks...

Tim-ber!

totenkopf88's picture

Poor Stanley- he'll have to stripmine a little more from the middle class's shrinking share of the wealth to make up for the loss

DeadFred's picture

Who would want to buy a place in NY just before the nuke goes off. Prices will be MUCH cheaper afterward.

Ben A Drill's picture

What part of Greenwich, CT. Is in NY.?

Delving Eye's picture

A 20% loss on ask is nothing. Many of those backcountry properties are selling for 40-50% off the ask -- usually years after it was put on the market because the owner can't accept the fact that his house isn't worth every red cent he wants for it. So he starts lowering the price. It only takes a patient buyer to reel in one of these manors. Still needs deep pockets though. That's why many of these piles are still not selling.

Endgame Napoleon's picture

After the Depression, some of the wealthy families, like the Vanderbilt’s, donated their homes when they would not sell. That is how the public got The Biltmore, for instance. Maybe, they could rent these homes out for weddings and so forth, making up for the loss. They probably have a bunch of laws hindering that sort of thing, even though it would not really hurt anything.

That one room has a lot of beautiful strap-work and other fine mill work, but it could benefit from a unifying, nuetral, tone-on-tone color scheme. Paint the fireplace to match the walls in a pale, neutral shade of light gray, white or cream, keeping the ceiling a lighter or darker shade of the same hue, with furniture in varying shades of the same light hue and a few scattered, dark accents. There is just so much going on with all of the architectural detailing and textures. Make a virtue of it by simplifying the color scheme so that the eye has a place to rest.

Miss Informed's picture

29 miles away as the crow flies

Ben A Drill's picture

He had that property since 2004. Do the math.

Max Cynical's picture

20% below 200% of the purchase price is still a strong market. 

totenkopf88's picture

And after 12 years of huge taxes and maintenance costs how much is he really ahead of his purchase price?

holdbuysell's picture

How many years until Greenwich becomes Detroit?

FoggyWorld's picture

Those estates will ultimately be cut up into small pieces and small homes will take over.

FoggyWorld's picture

Those estates will ultimately be cut up into small pieces and small homes will take over.

BigCumulusClouds's picture

You are wrong. It will be like Detroit. Nobody will buy a home there when property taxes climb beyond 2%.

Newsboy's picture

Wile-E-Coyote moment...

hedgeless_horseman's picture

 

He made $2 million. 

See? Just like the NAR says...

Home prices always go up!

Everyone into the pool!  

The water is great!

Ben A Drill's picture

Are you saying he cut his own grass and shoveled snow as well?

aurum4040's picture

Without looking it up, id say he probably paid a million in propery taxes in the last 14 years, at least. 

Ben A Drill's picture

Cost him a fortune to have that property since 2004.

my new username's picture

When the food runs out, the electricity stops, the police are no longer "minutes away" and the feral 40% come calling, the urban concentration of snowflake urbanites will be interesting.
Why do you rob condos? Its where the victims is at!
Now is the time to be contrarian.

any_mouse's picture

Survivors in Brooklyn and Queens will have one way to go when the bridges and tunnels are gone.

To the Hamptons to party!

Secret Weapon's picture

Total dump.  Give me a two bedroom cabin in the woods, clean air and stars at night.  No contest.

rwmctrofholz's picture

Poor guy only cleared 2 millon on the sale.  Feel awful for him.

BigCumulusClouds's picture

Why do liberals waste their emotions on jealously constantly?

just the tip's picture

so did i.

that's why i gave him the $25.

rlouis's picture

After closing costs he might have been lucky to break even.

Ajax-1's picture

Oh, I see what the problem is. It's in Connecticut. Nobody wants to live in fucking Connecticut.

toocrazy2yoo's picture

Niggers LOVE Coonecticut. They can rape, murder, invade homes, they walk in five years.

pndr4495's picture

Real estate agents push the idea that homes are financial asssets. They are not. They are financial liabilities. Ultimately the taxing authority can force a sale of the home if the associated taxes are unpaid. I do not know anyone personally who can claim allodial title to the land on which they live.

Ajax-1's picture

With that reasoning, equities are also a financial liability. Ultimately, you have to pay tax on your dividends or if you wish to someday sell the stock it will be subject to a capital gain which is taxable. If you choose not to pay your tax bill, the IRS can confiscate and substitute assets to settle the tax bill which includes the confication of equities.

BigCumulusClouds's picture

You can see a capital gains tax increase coming and can liquidate stocks quickly. With a home you are a boiling frog. In Illinois estates like Druckens are only going for a million or two. Once property taxes get above 2% and climbing, your equity will be fully confiscated and given to the government and its employees. Trump's plan to kill the SALT deduction is basically the final nail in the coffin fir homeowners in states like IL, NJ, and CT.

BigCumulusClouds's picture

What the tax-the-rich crowd doesn't realize is that the rich do not need to live rich. They too can live transient lifestyles. In fact they can do it far more easily. Drunken can put his shit in storage, buy a motor home or boat, sell his stocks, lay off all his employees, and buy gold and silver. He will never pay a tax again other than a registration fee and can fish and golf all he wants. He will also have no stress whatsoever ever again. He will never have to deal with a government regulation again beyond keeping his houseboat between the buoys.

any_mouse's picture

Maybe Stan was asking 20% higher than the bid?

Maybe the hot money is now buying property that is well above sea level and not on an island next to NYC.

And Bitcoin.

MilwaukeeMark's picture

Agreed. I wouldn’t be buying near either coast nor below 600’ above sea level. Increased EQ predictions for 2018 means increased tsunamis. Slowing rotation means rising sea levels. Off Cuba, in 2000’ of water, lies the remains of an entire ancient civilization complete with pyramids. Those too were once ocean “view” properties. Although I suppose technically they still are.

toocrazy2yoo's picture

Coonecticut has a negro problem from Hartford going east back toward New York and everyone here in New England knows it. Those neighborhoods where these plantations sit have been the scenes of some hideous home invasions, murders and robberies by Groids against their owners, one of them last year or two back they murdered the whole family, set the house on fire, raped the three daughters and wife, brained the doctor. Encroaching negroes make these properties less desirable. Some of this has to be priced in. Once you own the home, you're a target of violent Black diversity.

MisterMousePotato's picture

That particular incident you mention was, I recall, the work of a couple white meth heads, was it not?