Wealthy Californians Find The Shoe On The Other Foot As Wealthy Out-Of-Town Billionaire Snaps Up Properties In Their Idyllic Beach Town
Horror stories about idyllic small towns being roiled by rich, out-of-state carpetbaggers buying large swathes of real estate often have a buyer from California as the bad guy. The shoe is on the other foot for Carmel, also known as Carmel-by-the-Sea, where a foreign billionaire is buying so many properties so quickly that the locals are becoming very concerned.
A Seaside Paradise And Celebrity Hideaway
It would not be an overstatement to describe Carmel as one of the most idyllic enclaves on the Pacific Coast. The town of just over 3,000 residents, is on the picturesque Monterey Peninsula. It has a beautiful downtown area that is filled with first-class eateries and boutique hotels, making it a perfect weekend destination. In addition to a stunning beach, Carmel-by-the-Sea sits between Pacific Coast Highway (Route 1) and 17-Mile Drive.
The 17-Mile Drive traverses the peninsula while connecting to legendary golf courses like Pebble Beach Golf Links and Cypress Point Club. Since 1947, Pebble Beach has been the home of the Pebble Beach Pro-Am, a golf tournament founded by legendary entertainer Bing Crosby. Pebble Beach, Cypress Point and the Monterey Peninsula Country Club (replaced by Spyglass Hill Golf Course) host alternating rounds of this tournament that attracts both professional golf and Hollywood's brightest stars.
Actor and director Clint Eastwood even served a term as mayor. Brad Pitt owns a home here. For almost a century, Carmel has been where the rich and famous go to live "the really good life." As is the case in any small town, everyone here knows almost everyone. That's why residents are so alarmed that Patrice Pastor, a real estate developer from Monaco, is on an unprecedented real estate buying spree in Carmel.
Don't Miss:
Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
Miami is expected to take New York's place as the U.S. Financial Capital. Here's how you can invest in the city with as little as $500 before that happens.
An Out-Of-Town Billionaire On A Buying Spree In Carmel-By-The-Sea
According to SFGate magazine, Pastor's development company Esperanza Carmel LLC has been buying Carmel property since 2015. He now owns or controls an estimated $100 million worth of real estate in Carmel. Included in his 15-property portfolio are a Frank Lloyd Wright-designed house and La Rambla, a vintage building in the city's posh downtown area. At first, no one seemed to notice, but residents' ears perked up after the La Rambla deal closed in January.
Pastor may be a relative unknown in Carmel, but he is a very visible figure in his native Monaco. His family's roots in real estate go back several generations to Groupe Pastor, a development company founded by Patrice Pastor's grandfather, who built much of Monaco. Pastor is one of the only people in Monaco powerful enough to survive a public spat with its ruler Prince Albert.
Questions About Pastor's Intentions
It's clear that Pastor, a third-generation real estate developer, has plans for Carmel. His holding company is already redeveloping some of his acquisitions. It's equally clear that Carmel residents, many of whom would prefer their bucolic seaside town to remain exactly as it is, are unnerved by the prospect of an out-of-towner with deep enough pockets to buy just about whatever he wants.
One anonymous Carmel resident told the SFGate that "People are terrified," and the fear is "they may be handing their town over to one person who's doing what he wants to do." It probably doesn't help that Pastor has such a hard-charging reputation and even told French newspaper Le Monde, "I'm not a nice guy" in an article about his no-holds-barred feud with Prince Albert. However, Pastor says there is nothing to be afraid of.
Is This All Much Ado About Nothing?
In an interview with the Daily Mail about his buying spree, Pastor said, "We love the town, we want to protect its unique character." He also adds that he "cannot understand why locals are so worried." It's worth noting that despite his buying spree, Pastor is not Carmel's largest landowner. It's also highly probable that several more Carmel property owners may be interested in selling to Pastor.
In the meantime, Pastor's real estate agent Tim Allen is seeking to calm everyone's nerves. Allen represented Pastor on his first deal in Carmel and has been his agent for many transactions since then. He told SFGate, "I love Patrice, he's like family, and he loves Carmel, he loves it. And what he's doing is good for our community." It all sounds benign, but the unease remains.
Many Carmel residents are beginning to wonder whether it's time to "stand up" to Pastor before it's too late. They are taking Allen's endorsement of Pastor's intentions and character with a grain of salt, which only makes sense. After all, Allen earns a tidy commission every time he closes a deal for Pastor or Esperanza Carmel LLC. Only time will tell whether Pastor preserves Carmel's character or changes it forever.
Read Next:
Elon Musk has reportedly bought 6,000 acres of land just outside of Austin. Here’s how to invest in the city’s growth before he floods it with new tech workers.
Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Jeff Bezos gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
Whole Foods' landlord has delivered a 15% net IRR for its investors since 2015. Check out the latest investment opportunities added to its platform.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Wealthy Californians Find The Shoe On The Other Foot As Wealthy Out-Of-Town Billionaire Snaps Up Properties In Their Idyllic Beach Town originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
