Investment group buys Kanye West's gutted 'jewel of Malibu' mansion

By Claudine Zap

The company allows micro investors to acquire high-end properties

The buyer of Kanye West's gutted Malibu, Calif., mansion has officially closed on the property-and plans to fully restore it.

The real estate investment company Belwood Investments closed on the property on Sept. 26 for $21 million and stated ambitious plans for the besieged property.

Belwood Investments CEO Bo Belmont called some of West's decisions to gut the home "dumb," in an interview with the Los Angeles Times.

"My goal is to make it as though Kanye was never there. The house will be restored right back to what it was," said Belmont.

Belmont also told Realtor.com that the company targets luxury real estate and this house "fits all of our criteria."

"This is a relatively easy project in comparison to our other projects. Length of time is 12 to 14 months with a cost projection between $6 million and $8 million," he said.

More from Realtor.com: Millennials Are Wealthier Than Other Generations Were at Their Age: See How They Did It

Belmont added that he was not daunted by the state of the home because it was "built stronger than anything I've ever seen. We basically just have to put it back together again. The first thing that I plan on doing is starting the construction with the original builders for Richard Sachs."

He added that he plans to work with architecture firm Marmol Radziner, which worked on the initial build of the house that was completed in 2013.

More from Realtor.com: Top 10 Cities Where Homes Sell for the Most Below the Asking Price

Damaged domicile

West, who goes by Ye, purchased the concrete fortress designed by legendary architect Tadao Ando in 2021 for $57.25 million. Then he proceeded to strip it of everything-doors, windows, plumbing, and electrical-as part of his plan to turn it into an open-air bomb shelter.

But Ye, a controversial figure who is believed to be worth $400 million, according to Forbes, walked away before the project was finished. At the beginning of the year, he put it on the market at a huge loss, for $53 million, with "Selling Sunset" star Jason Oppenheim of The Oppenheim Group.

Read: 'Selling Sunset' fans want to know: Are the stars actual real estate agents, and who sells the most?

With the renovations unfinished and subsequent damage to the property that they caused, the price was reduced to $39 million in April. The buyer scored an additional deep discount, going into contract in July and closing the sale on Sept. 26.

More from Realtor.com: See How Much Homebuyers Will Save Now That Rates Have Dropped (It's a Lot)

'Costly and prestigious'

In a press release, Belmont noted that this transaction represents the most "costly and prestigious property" in the company's portfolio.

His company allows micro investors to acquire high-end properties. The press statement noted that 500 investors were involved in this purchase.

The plan is to pour $5 million into renovations to restore the property, and then flip it for a profit for his investors.

"We are incredibly excited about the acquisition of this property," Belmont said in a statement. "This is not just a phenomenal real estate investment; it is an opportunity to revitalize and preserve an architectural gem by the renowned Tadao Ando, ensuring it remains a jewel of Malibu. This acquisition exemplifies Belwood Investments' commitment to transforming properties with historical and architectural significance while delivering exceptional returns for our investors."

More from Realtor.com: 'We Built Our Dream A-Frame Home in the Adirondacks From the Ground Up-Without Any Experience'

Malibu marvel

Completed in 2013 for Sachs, the 4,000-square-foot structure contains more than 1,200 tons of concrete and 200 tons of reinforced steel.

It was built atop sand, supported by 12 massive caissons driven 60 feet into the bedrock.

The minimalist four-bedroom, five-bath home features open spaces, ocean views, and indoor-outdoor living spaces.

Although the home has been stripped of its luxury finishes, Belmont told the Times that he believes that the changes Ye made are "mostly cosmetic."

The restoration and repair work is expected to take between 12 and 16 months, the press statement noted.

Jason Oppenheim with The Oppenheim Group represented the seller. Jean-Baptiste Rugiero with The Agency represented the buyer.

This story originally ran on Realtor.com.

-Claudine Zap

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-01-24 0502ET

Copyright (c) 2024 Dow Jones & Company, Inc.