Friday, April 1, 2011

Justin Long Has Terrible Real Estate Timing

SELLER: Justin Long
LOCATION: Los Angeles, CA
PRICE: $1,649,000
SIZE: 3,388 square feet, 3 bedrooms, 4 bathrooms

YOUR MAMAS NOTES: Actor Justin Long is perhaps best known among common folk as the spokesperson for Apple's "I'm A Mac" campaign and for his on again/off again relationship with troubled child star turned Hollywood power player Drew Barrymore. His entertainment bizness resume also includes a long list of appearances in cinematic diamonds like Jeepers Creepers, Dodgeball: A True Underdog Story, Herbie: Fully Loaded, Pineapple Express, He's Just Not That into You and Alvin and the Chipmunks: The Squeakquel.

The wee lamb, bless his heart, is also about to be known as one of the many celebrities hit smack upside the head by a number of optimistic and ill-timed real estate purchases soured by the dramatic Kablooey-Kablam! of the most recent real estate super-bubble.

Bright and early yesterday morning, well before Your Mama had even a single gin & tonic down in us, we received a missive from The Bizzy Boys at Celebrity Address Aerial who informed us that Mister Justin Long recently and drastically lowered the asking price of a Los Angeles, CA residence he owns in the Oaks neighborhood.

Property records and earlier reports show that Mister Long purchased the Mediterranean style mini-mansion in May of 2008 for $1,999,000. The house, built in 1990, had been owned from the early 1990s to 2003 by another celebrity, Blair Underwood. Current listing information shows the 3,338 square foot residence includes a walled courtyard at the front with built-in barbecue center, double-height living room with loft, dining room with wet bar and a u-shaped gore-may kitchen with large work island. All three bedrooms have private poopers including the master suite that also features a wood-beamed ceiling, awkwardly located fireplace and walk-in closet with inexpensive looking shelving system.

Interestingly, current listing photos show identical day-core–down to the bed linens and dish towels–as was shown in the listing photos utilized back in 2008 when Mister Long acquired the property. We're not sure if that means that old listing photos are being used again or if Mister Long purchased the house lock, stock and pillow case and neither added nor removed nary a thing from the house in the intervening years.

Mister Long first listed the property back in early December of 2009 with an asking price of $1,999,000, exactly what he paid for the place 1.5 years earlier. Eventually the price dipped to $1,899,000. In December 2010 the property was de-listed and re-listed the same day with a new and even lower asking price of $1,799,000. On the 21st of March, according to Redfin, Mister Long and his Real Estates karate-chopped the priced by a significant $150,000, which brought asking price to its current $1,649,000.

A couple quick flicks of the hard-working beads on Your Mama's bejeweled abacus reveals that's a noteworthy $350,000 less than Mister Long paid for the property. If we move and manipulate the bejeweled abacus beads another way it shows Mister Long's L.A. abode is currently listed for nearly 18% less than he paid for the place almost three years ago.

topic: Did Mister Long over-pay for his home in the Oaks neighborhood, puppies, or has the real estate market in even fairly prime areas of Los Angeles fallen that much in the last few years?

Those who wish to participate in the debate but are not over-familiar with the specific 'hoods in and around Los Angeles should bear in mind the the Oaks neighborhood where Mister Long's real estate white elephant is located is not the same as The Oaks, the Calabasas, CA development where celebrity residents include Kourtney Kardashian, Travis Barker and Kathyrn Jackson–that would be Michael's momma–who currently leases a large mansion in The Oaks while she works over the Jackson family's long-time homestead on Hayvenhurst Avenue that is–the records we accessed indicate–technically and legally owned jointly by the estate of Mister Jackson and his sister La Toya. In 2008 the Hayvenhurst property entered into pre-foreclosure but since Mister Jackson's death money has poured into the coffers of his estate and whatever debt previously secured by the property has reportedly been paid.

Anyhhoo, this is not, as it turns out, the first time that Mister Long has been bitten by the sharp teeth of a real estate mistake. In May of 2007 Mister Long paid $1,450,000 to acquire a modestly-sized single-level mid-century modern(ish) house on La Cuesta Drive in the Hollywood Hills. By August of 2008 he had the house back on the market with an asking price of $1,495,000. Property records show that the property was sold October of 2009 for $1,200,000, a figure that represents a frightening and meaningful quarter of a million dollar strike against Mister Long's bank accounts.

But children, it gets even worse for Mister Long. In July of 2008–just about the time he bought the house he now has for sale at a $350,000-plus loss–Mister Long splashed out $2,425,000–some records show $2,291,062–to purchase a 2 bedroom and 2 pooper condo in a newly constructed and very contemporary Bernard Tschumi-designed tower in lower Manhattan called BLUE. A few minute's research on the interweb reveals that in September of 2010 Mister Long flipped his 1,975 square foot condo on the market with a frustratingly complicated asking price of $1,943,400, a staggering loss of $481,600.

The L-shaped condo (above), which listing information indicates had a rental tenant in place until the end of February 2011, has a long entrance hall, a living room with north, west and southern exposures, a decently sized kitchen, dining area, laundry closet, two actual bedrooms–one with private pooper and large walk-in closet–plus a small study/office area that could be converted to a tiny bedroom with the addition of just one non-structural wall.

Now children, let's put on our thinking caps and do a little real estate mathematics, shall we? In 2009 Mister Long waved bye-bye to $250,000 when he sold his house on La Cuesta Drive. He stands to lose $350,000 (and more) on the house he currently has listed in the Oaks neighborhood in Los Angeles–that's a $600,000 combined loss–and he's looking at another fat $481,600 (plus fees) loss on his Big Apple digs. That means that even if Mister Long and his Real Estates manages to miraculously secure full price sales on both homes he currently has on the market he's looking at total and totally punishing loss of $1,081,600 (plus fees) on his poorly-timed real estate transactions.

Your Mama would be shocked to the point of faint iffin we were to learn that Mister Long isn't able to endure such a substantial financial loss but a million dollar-plus hit to his bank accounts has got to be, none-the-less, a special kind of torture.

photos (Los Angeles): Joan Lurie Realty
photos (New York City): Sotheby's International Realty


Anonymous said...

Tends to show the lack of wisdom in investing in real estate instead of the stock market. Both tanked during the recent super recession, but the stock market recovered nicely and is in good shape while real estate is still pretty much in the gutter.

Anonymous said...

Stocks are typically much riskier... real estate is considered the safest investment but what none of these morons seem to understand its meant to be a long term investment

Anonymous said...

I thought there would be an app for real estate predictions.

Anonymous said...

Mr.Long must of been a client of my fancy Hollywood celebrity business manager who led me down the exact same path in the exact same time frame with almost the exact same losses....that business manager has now been accused of many major Madoff-like crimes by another celebrity client who is suing the firm for a miliion-plus
in damages.

And what did that "Inside Job" documentary director say at The Oscars last month?...."and none of them have been put in jail yet..."

Anonymous said...

I doubt stocks are riskier than real estate. Not compared to a wise selection of stocks. With stocks you can spread your risk over the entire world and over almost all industries while real estate can be hit by problems unique to the location. I don't know of any of the greatest world fortunes in real estate but the top ones are in shares (Gates, Buffett, Ellison, et. alia).

Anonymous said...

10:08 There is nary a real estate billionaire in the world's top 22 fortunes (Forbes). Real estate fortunes come in (on the world list) at Nos. 23, 28, 57, 64, 100. Paltry compared to those in industry, etc.

angie said...

re: Discussion topic

I'm not a fan of houses with odd angled rooms and don't believe people in general are either. That may have a lot to do with the lack of interest at any price.

angie said...

Sorry, I got up to eat after reading today's article and mixed up my reply when I returned.

I think you provided the best answer to your own question Mama: Justin's real estate timing is terrible.

2008 was no time to be making unnecessary real estate purchases, and the market hasn't improved much since then, so 2011 isn't a particularly favorable time to be selling.

Anonymous said...

I think the "frustratingly complicated" asking price of the NYC condo is an indication that it's a short sale.

As for the discussion topic: hindsight being 20/20, yes he overpaid (unless the house came with visits from Blair Underwood). Apparently, he was far from alone in the frenzy (understatement). I loved to Los Feliz last year and the short sale/foreclosure wave has intensified this year. In 2010 it was mostly the houses/condos under $500k, but now it's heavy in the $1 million range. On my daily stroll I pass no less than seven houses that are short sales or foreclosures.

To reiterate anon 3:25, the banksters are still free men. Shame, shame.

Lady J

Anonymous said...

all it is like 1 film for the guy probably. so 4 months of work. big deal. like $25000 to avg schmoe

Anonymous said...

I don't think it's fair to cast Justin as the only IDIOT JAVELIN CATCHER when it comes to making poor real estate decisions...momma.Yes he overpaid for properties.Just like anyone else who bought in the last decade or so.I know that LA / NY real estate types would like to present the aura of immunity from market price fluctuations...but all I ever read is people taking much larger hacks to the wallet than this guy.Hey...don't overpay for real estate is the lesson here.It's just a place to live.

Anonymous said...

The guy keeps working. he should have money. He has the same problem as all these other nutballs have...they are like little kids who pick up a shiny toy (house), and when they tire of it, they want it gone, out of their lives, they want to move on and have new energy....and taking huge hits in the process. If he doesn't sell he won't take the loss. Unless he bought these places with no money down and with an adjustable he should be able to ride this out...who the fuck is his biz mgr???

Babe Parish said...

His place looks like a cross between Hogwart's and a Cub Scout Lodge.

Steve Mawson said...

I guess Mr Long made a mistake and used his MAC (pretty house pictures) instead of his PC (to check his investment spreadsheet). Oh well.

Try Neo-Office next time, Justin, it works on your Macnifty machine.