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Johnny Carson bought a four-acre Malibu estate for $9.5 million in 1984; after owners sought $81.5 million, it sold for $40 million
In 1984, Johnny Carson bought a Malibu estate for about $9.5 million. Listed at $81.5 million in 2017, it sold for $40 million in 2019, less than half the ask.
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For three decades, Johnny Carson hosted NBC’s “The Tonight Show” and was a fixture of late-night TV. Away from the cameras, he bought a four-acre Malibu estate in 1984 for about $9.5 million, according to the Los Angeles Times. Decades later, its owners were asking $81.5 million. The property ultimately sold for $40 million in 2019, a little less than half of that ask. The story shows how far a listing price can be from what buyers will actually pay, even for a home with celebrity history.
A famous home with an ocean view
Carson died in 2005 at the age of 79. He purchased the Point Dume property in 1984, while still hosting the show, and lived there for more than 20 years. The house sits on about four acres on a bluff looking out over the Pacific Ocean. The modern home was designed by Malibu architect Ed Niles and features an indoor arboretum, a wine cellar, and a media room. The grounds also include a sunken tennis court that NBC gave Carson as a gift, according to the 2017 listing. It even includes a bench from the grass courts at Wimbledon. With details like these, it’s easy to see why the place drew so much attention.
A very high asking price
Film producer Sidney Kimmel and his wife, Caroline, listed the estate for sale in October 2017 for $81.5 million. Kimmel is the founder of Jones Apparel Group, and his movie credits include “Moneyball.” The couple purchased the property from Carson’s widow, Alexis, in 2007. The Times, citing records, said the Kimmels spent about $46 million for the home and two adjacent parcels. The 2017 ask was far higher than that. The Kimmels lowered the price to $65.2 million in August 2018, according to the Los Angeles Times. The house was still on the market.
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How the sale finally happened
Mansion Global reported that the property was sold towards the end of June 2019 for $40 million, with the main property selling for $25.9 million and the two neighboring lots for $14.1 million. The final price was 51% lower than the original $81.5 million asking price. Therefore, the sellers received about 49 cents for each dollar they asked for. While the news about the sale first appeared in Variety, the buyer was not named at first because the purchase was made through a limited liability company. Later reporting identified the buyer as venture capitalist Riaz Valani, an early Juul investor, and his wife, Augusta Tigrett, who paid $40 million in cash in an off-market deal. The $40 million price was about $6 million below the roughly $46 million the Kimmels paid in 2007, according to the Times.
What the numbers tell us
Carson had purchased the estate for about $9.5 million in 1984, while it sold for $40 million 35 years later. That is over four times what he paid for it. However, this cannot be used for comparison because the sources do not state whether Carson paid $9.5 million for all the land that was put on the market in 2019. Back then, money had more value than it does now, and the figures do not include upkeep, taxes, or any upgrades.
The larger lesson is simple. An asking price is a hope. A sale price is a fact. The fame can add buzz, but buyers still look at the land, the view, and the condition of the home. About 20 months passed between the October 2017 listing and the June 2019 sale, and the price was cut sharply before the property sold. For anyone dreaming of buying property one day, that’s a useful reminder. Prices can fluctuate even at the top of the market, so it’s wise to look at actual sales rather than the big numbers on a sign. This is something to consider whether you are buying your first apartment or a dream home.
