Playboy Mansion sold with Hugh Hefner as a sitting tenant

The Playboy mansion, the site of hundreds of celebrity parties and home to Playboy founder Hugh Heffner is being sold to his neighbour and private equity boss, Daren Metropoulos, 32.

The Playboy Mansion, the site of hundreds of celebrity parties and home to Playboy founder Hugh Hefner is being sold to his neighbour and private equity boss, Daren Metropoulos, 32.

The Iconic Los Angeles mansion was built by renowned architect Arthur Roland Kelly, who also designed hundreds of homes across LA.

Built in 1927 and bought by Hefner in 1971 for a reported price of $1.1 million, the 1,858 square meter, five-acre property went on the market in January for $200 million (£138m).

However, there’s one catch - 89-year-old Hefner has the right to remain living in the property until he dies.

"The Playboy Mansion has been a creative centre for Hef as his residence and workplace... as it will continue to be if the property is sold," said Playboy chief executive Scott Flanders said in a statement.

Jeffrey Hyland president of Hilton and Hyland real estate stated that the nine-digit listing is the highest priced residential sale in Los Angeles, but despite this and the unusual circumstances of its sale, received offers from multiple buyers.

Jonathan Miller, a president and chief executive of Miller Samuel Inc. states that based on the price per square foot of other luxury properties in the Los Angeles area –  the valuation would be closer to the $27 million price tag if it weren’t for the mansions status.

Another real estate agent, Stephen Shapiro, believes that the majority of the estates worth lies in its acreage and prime location in Holmby Hills, stating that the land alone could be worth up to $100 million. However, he agrees that the $200 million price tag seems a little steep considering Hefner comes as part of the package.

“I thought it was hard-pressed for somebody to spend over $100 million and not know when they were getting their house.” 

The real estate market has seen a boom in listings over the $100 million marker, with 27 properties listed around the world according to the Wall Street Journal.

The property boasts 29 rooms, a tennis court, swimming pool, home theatre, wine cellar, games house and a zoo license (including monkeys, peacocks, parrots, toucans and other birds).

However, real estate experts say that the house would need significant upgrades to bring it up to the high-end property standards of Beverly Hills.

Metropoulos, who bought the neighbouring property in 2009 for $18 million in 2009 told The Wall Street Journal: "The heritage of this property transcends its celebrity and to have the opportunity to serve as its steward would be a true privilege.”

Reports suggest that he wants to merge the two properties into a 7.3-acre plot. However, any development plans will have to go on hold as part of the agreement.

Playboy enterprises have been undergoing a number of changes as it seeks to compete in a highly competitive online marketplace.

The mansion was put up for sale as part of their change in corporate strategy.

 



Melanie Luff

About the author

Mel wrote for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other global industry publications.

@Be_TheBoss

Subscribe to our email updates.

PropertySales.com is committed to protecting your privacy. We will use the information you provide on this form to send you marketing emails . Find out more about what we do with your information in our Privacy Policy.
Marketing Emails: You will receive newsletters, advice and offers about buying and selling commercial property. We will also send you information about commercial property events.