Luxury spec houses: The 1% just can’t get enough. They’re going for $45 million in Fort Lauderdale and $36 million in Miami. And then there’s the specmansion capital of the world: Los Angeles, where you can follow Steve Cohen’s lead and pick up a place for $35 mill, or go bigger: $70 million, $100 million, $200 million, whatever. Grab one before Bill Ackman snaps them all up and flips them for $300 million.
“These are people who are going to buy these homes to park money,” says Jeff Hyland, of Beverly Hills-based Hilton & Hyland. One of his agents is working with a developer who is building a 90,000-square-foot spec home, and Mr. Hyland has another developing six 2-acre lots, each of which will feature a 40,000-square-foot spec home. When they are completed in about three years, the 40,000-square-foot homes will be priced around $100 million….
Building a home that stands out, he says, means wowing buyers with amenities and design elements they didn’t know they wanted. “That’s the art of being ahead of the competition,” he says, estimating that there are at least 20 contemporary-style homes in the $30 million-and-up price range under construction in the Los Angeles area. Mr. Hadid declines to say what he’s spending on the home, but says the listing price will likely be in the $200 million range when the house is completed next year.