Norman Lykes “Circular Sun House”
Priced at $7,950,000
Many astute real estate investors purchase property at auction at a drastic discount and the price paid is rarely a representation of the value. Often sellers are in a hurry to sell and at an extreme disadvantage.
Markets change and as we know, similar to the stock market, the real estate market goes up and the real estate market goes down. We have a shortage of inventory in the metro Phoenix area, and my client owns the one and only home known as the “Circular Sun House”. The seller of the property at 6836 N. 36t St., Phoenix, Arizona, USA, feels that the home could not be built for less than $4 or $5 million or more, plus factoring in the increase in building costs, and the value of the lot – perhaps another $1.5 million? Further, the value of the views and goodwill, etc. all more than validate the offering price. Even if replicated, a new property would not have the value and prestige of being the original Norman Lykes house.
I met with a local luxury builder, Michael Bida at Finesse Construction, who concurred with the value and numbers above. Bida stated that the value of the intricate custom woodworking is a huge value of its own, and would be very difficult and costly to replicate. It could take a year just to do custom woodworking.
Bida & his business partner, Robert Mirada, are hillside land owners slightly below the subject property and they are planning a 4000 sq. ft house perched on the mountain, coming to the market in late 2021 with a multi-million dollar price tag.
It’s also noteworthy that the David & Gladys Wright property on Exeter which was listed at $10 million in Arcadia just sold over $7 million. The property seemed to be run down and on flat land, although it was more acreage, it was not nestled on the edge of a mountain preserve, creating spectacular views which most people would agree are priceless.
The Ennis House in Los Angeles, which sold for $19 million in 2019, was the highest sale. Previous sale was $4.4 in 2011.
The owner of the “Circular Sun House”, Normal Lykes house is counting on making history and transferring his ownership to a lover of the work of Frank Lloyd Wright who will enjoy the esteemed property and pride of owning Frank Lloyd Wright’s Final Design.
A new owner will surely be congratulated to buy a piece of history in addition to one of FLW’s greatest works.
See the October, 2020 issue of Homes & Land Magazine for more.
Categorised in: Buying A Home