The hot real estate market can sometimes make people do things that they might regret, things that would never have occurred to them to do under ordinary circumstances.
Such is the case of the former NBA Sacramento King's top executive accused of funneling sponsorship and naming rights money from the Golden 1 Center in Sacramento into his own company, which monies were then 'laundered' via the purchase of two homes here in the South Bay.
One of the homes, pictured below, was a brand new 4-bedroom ocean-view townhome at 814 Highland Avenue, Manhattan Beach. This townhome, the front unit of two on the lot built by noted local builder Kim Komick, was purchased upon completion in 2016 for $3,800,000.
The other home that was purchased in this scheme was 3330 The Strand in Hermosa Beach, which he picked up for $8 mil. This older home - built in 1954 and badly in need of a remodel - managed to cram 7 bedrooms and 5½ baths into 3152 sqft but had the advantage of being right on the beach in a good section of Hermosa's Strand.
And, after the buyer's agent, a well-regarded local builder, got done collaborating with a noted general contractor on a major remodel, it was essentially a brand new 5-bedroom beachfront home (see below).
However, the Feds got involved and the buyer had to relinquish his ill-gotten gains by selling the two homes.
The good news? A rising market actually produced a sizable profit for the buyer-turned-seller. The 814 Highland townhome that he purchased for $3.8 million recently resold for $4,299,000 and the Hermosa Strand property that he purchased for $8 million (and subsequently remodeled) garnered $10.5 million on the resale.
However, it's unlikely he got to keep any of those gains. Such are the wages of sin.
This entry was posted under Realty Bites.