Way back at the beginning of the meltdown, we told you about Wall Street execs, dinged by the crash, who were selling their houses. Now, several months on, a few execs who saw their firms crumble are realising they might want the equity out of their houses.
Introducing the latest additions to Houses Of The Crash, starting with Louis Gonda, a billionaire exec at AIG, who is selling the Beverly Hills mansion he’s owned for 20 years. He originally put the eight-bedroom Georgian on the market for $42 million but quickly lowered the price to $35 million.
WSJ: In an email, Mr. Gonda says that with his five children grown, he and his wife plan to travel more and no longer need the home. Situated on 1½ acres and a block from the iconic Beverly Hills Hotel, the house has a rectangular pool, a tennis court and a five-car garage, says Mr. Gonda’s real-estate agent, Zach Goldsmith, of Hilton & Hyland, an affiliate of Christie’s Great Estates.
In July, Mr. Gonda sold a rare beachfront parcel in Playa del Rey, a Los Angeles beachfront community, for $2.4 million, says listing agent Dan Christian, of Shorewood Realtors. Mr. Christian says Mr. Gonda had bought the plot a year before and razed the existing house to make way for a new structure.
Mr. Gonda notes that his family has other homes that it is not selling. “The AIG collapse has hurt hundreds of thousands of shareholders and employees. I am not an exception and prudent management dictates that nonessential, non-income-producing assets be sold first,” he says in an email. He adds that six years ago his family began diversifying away from AIG and the stock market, a move that “has served us well.”
But Gonda’s not the only financier selling assets; bankers in London are selling their homes in luxury neighborhoods like Chelsea and Kensington as well. And some of them aren’t selling houses because they need the cash.
In early November, Scott Freidheim, former chief administrative officer at Lehman Brothers, put his just-purchased Greenwich, Conn., mansion up for sale for $13.75 million, according to Greenwich listing records. He and his wife bought it a year earlier for $12.4 million. The house is also for rent. The sale is tied to Mr. Freidheim’s relocation to Chicago, where he is now executive vice president of operating and support businesses at Sears Holdings Corp., says his real-estate agent, Joe Barbieri, of Sotheby’s International Realty…
In Nantucket, Mass., Goldman Sachs Group Inc. Co-President Jon Winkelried put his summer home up for sale last fall for $55 million, but has since cut the price, according to his listing agent, Linda Bellevue, of Congdon & Coleman Real Estate, who declined to comment further citing a confidentiality agreement. He didn’t return a call to his office seeking comment.
And, by the way, both Joseph Gregory and Anthony Piszel’s houses are still for sale.
Photo from Hilton & Hyland via The Wall Street Journal
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.