In the 1960s, Norman Jewison directed a small gem of a movie, “The Russians are Coming, the Russians are Coming.” The plot centers on the reaction of the residents of an oceanfront New England village to the crew of a Russian sub that runs aground just off the coast. Given the Cold War hysteria at the time, the locals are convinced they are under attack. By the end of the movie, both the Americans and the Russians discover that they have a lot more in common than they had previously thought, and humanity wins the day.

If the movie were to be remade today, the petrified townsfolk would be replaced by extremely affluent homeowners and their real estate agents, and the “menacing” Russians would be billionaires with plenty of cash and a penchant for overpaying. Needless to say, fear would be replaced by euphoria in the updated version, at least in the beginning, as the “have-a-lots” all vie to get high nine-figure price tags for their exotic digs. Fear would inevitably set in, however, as the real estate agents all begin to realize that there aren’t enough Russian billionaires to go around to make all their sellers happy.

The report today that a Russian billionaire had plunked down 500,000,000 euro for Villa Leopolda in Villefranche on the French Riviera was the kind of news that makes you stop, go back and reread carefully. There must be one too many zeroes in there, you think. But, no, the price was €500 million, or just about $750 million. Why, it was just a few weeks ago that Donald Trump made news when he sold a mansion in Palm Beach to a Russian billionaire for $95 million. The truly interesting angle on that transaction was not the price, but the rumor that the buyer was planning on tearing the house down. But that is yesterday’s news. Compared to today’s announcement, a $95 million teardown seems almost ordinary.

The news report I read that presented details on the deal said that the real estate agents along the French Riviera were giddy. “Giddy” soon will be replaced by “exasperated” as these same agents soon discover that it will be hard to meet the new-found expectations of their well-to-do sellers. One agent quoted lamented that now he and his fellow agents wouldn’t dare propose prices less than €100 million to their top clients.

Yes, those of us who are involved in the reporting on and promotion of luxury real estate smile and shake our heads when we hear of deals that seem outrageous on the surface. We may even get giddy ourselves for a few moments. Let’s face it: Big price tags for real estate make interesting news, and if the buyer can spend that kind of money, then what’s the big deal? Even so, there is something unsettling about so much money going to buy a single property. If we have learned anything in the past year or two, it is that there is a problem when the real estate market eschews reality in favor of fast and unsustainable profits. Given that this deal is so extravagant, it is not likely to have any significant impact on the luxury market as a whole (though area luxury agents are likely to see their world turned on its head for a while). I don’t suspect this is going to precipitate a string of €400 million and €500 million deals along the Côte d’Azur. If it does, not only will I eat my hat, I will go back to school and learn how to speak Russian.

–Rick Goodwin, Publisher, Unique Homes

Mukesh Ambani, the fifth richest man in the world, is building a 550-foot-tall, 27-story skyscraper with 400,000 square feet of interior space as his family’s private residence in Mumbai, India. Billed as the World’s Most Expensive Home, it is being designed while it is constructed! The project’s cost is estimated at nearly $2 billion. Forbes has an article and photos here.

In a report for The Wall Street Journal online, Stacey Delo, WSJ Digital Network reporter, focuses on San Francisco’s not-so-sluggish high-end market.  Her story opens with a look at the top of our Ultimate Homes list of the most expensive listings in the U.S.  You can view the video here.

Another 2007 Unique Homes cover home is under contract. Donald Trump’s $100 million estate in Palm Beach, Fla., reportedly is slated to be sold for full asking price to an anonymous foreign buyer. Trump bought the estate at a bankruptcy auction in 2004 for $41.35 million and spent $25 million renovating it. The property’s biggest draw is its location, with almost 500 feet on the Atlantic Ocean. The Palm Beach Post indicated the buyer may be tearing down the property.

The Wall Street Journal reported earlier this month that Italian real estate tycoon Luigi Zunino has listed his apartment in the Plaza Hotel for $100 million.

It’s true.  In a Condé Nast Portfolio article published today, Phil Scott profiles The Maltese Falcon and takes a look at the market for megayachts.

Montana newspapers report that Tim Blixseth, founder of the Yellowstone Club, recently sold the 160-acre parcel that was to be the site for The Pinnacle, a luxurious compound of four 4,000-square-foot guest houses and a 32,000-square-foot main house in a setting reminiscent of a European village. When plans for the property were unveiled in January 2007, the $155 million price made the home one of the most expensive in the world and the most expensive in the U. S. at the time. Uber amenities were to include a retractable helipad (naturally, the helicopter was also part of the deal) and a private gondola to whisk occupants to Yellowstone’s lifts. In an interview for Ultimate Homes magazine last year, Beau Blixseth, Tom Blixseth’s son and project director for The Pinnacle, said the land, a lush forest of pines, aspens and firs offering 360-degree views of the Rockies, was one of the property’s most extraordinary features. (Pictured is a rendering of what The Pinnacle was to look like).

According to a report in the Missoulian, the land on which The Pinnacle was to be built was purchased by Big Sky resident Loen Bough.

The Yellowstone Club was put up for sale earlier this year and will fetch $455 million, according to Bloomberg News and a report in the Bozeman Daily Chronicle.

—Camilla McLaughlin

The 1918 10-bedroom manor house in Greenwich, Conn., that served as the center of Leona Helmsley’s 1989 federal tax-evasion trial reportedly will list for $125 million. The listing price would leave only two U.S. residential properties with higher price tags. The mansion, Dunnellen Hall, boasts 23,000 square feet on 40 acres. The Beverly House, the former Beverly Hills mansion of William Randolph Hearst, lists for $165 million. Hala Ranch, the former 95-acre Aspen estate of the Saudi Arabian ambassador to the U.S., lists for $135 million.

You can read about Dunnellen Hall in today’s Wall Street Journal, and in this detailed story from The Advocate.
http://www.stamfordadvocate.com/news/local/scn-gt-helmsley2.1,0,7241213.story

http://www.realestatejournal.com/buysell/regionalnews/20080204-lewis.html?refresh=on

According to The Wall Street Journal, a wealthy hedge-fund manager recently purchased The Forbes Ranch for the record price of $175 million dollars.

The transaction represents the single largest home purchase in the United States to date.

Mr. Louis Bacon, head of Moore Capital Management was the buyer of this corporate retreat which was purchased by the late Malcom Forbes in 1969. Forbes, who died in 1990 used the property to entertain guests and corporate clientle.

The property is located in Colorado in the small community of Fort Garland. It is the state’s largest privately deeded ranch. The ranch is officially known as Trinchera Ranch which occupies three, 14,000-foot high mountains with spectacular views.

News of the sale was reported locally by The Aspen Daily News.

In other news effecting the luxury segment, the home of Bander bin Sultan of Saudi Arabia just came off the market.

The property, located in Aspen was represented by Joshua Saslove of Saslove and Company.  The Saudi Prince was formerly the Ambassador to the United States for the Saudi government.

As predicted last week, the most expensive listing in Southern California has just hit market.Joyce Rey, head of Coldwell Banker’s PREVIEWS International Division and one of the country’s leading estate agents has just co-listed the home of Suzanne Saperstein for a record setting $125 million dollars.

The 45,000 square foot mansion which was modeled after the historic Versailles palace is commonly known as Fleur de Lys.

Fleur de Lys becomes the 5th residential estate in the US to exceed the $100 million dollar price tag.

It is not only the highest priced listing on the Westside, but it is now the most expensive listing represented by Coldwell Banker PREVIEWS International. (pictured: Joyce Rey)