At $22M, Cahuenga Peak Still Too Steep

The most expensive piece of land on the market right now is probably also the most stagnant. A couple of weeks ago, Teles Properties passed the 1-year mark on a chunk of 138 acres atop Cahuenga Peak, priced at an altitude sickness-inducing $22 million. The property, which consists of five contiguous parcels, is being offered up by the Illinois investment firm, Fox River Financial, that purchased the land in 2002 for $1,675,000. Since then, the prospect of development on that land has terrified many an Angeleno, especially because of its proximity to the iconic Hollywood sign. The city even began a fundraising campaign to reclaim the land and attach it to neighboring Griffith Park. Their cost estimate? $6 million. Eek.

The site is located between the termini of Wonder View Dr. and Mt. Lee Dr., straddling the Santa Monica range between the Hollywood Reservoir and Universal City. Much touted by the sellers, is the property's supposed 'rich Hollywood history'... but while the land was owned by Howard Hughes and his estate for almost 70 years, the then-world's richest man never actually built anything on it. In fact (perhaps to the embarassment of the sellers), Hughes' invitation to girlfriend Ginger Rogers to live on the mountain estate is what ultimately drove her away from him. So maybe the site's isolation is a curse, but its height and prominence apparently, are not. In a 30-second video spot reminiscent of a theatrical trailer, the realtor drops the tagline, "In a city of superlatives, live above it all."

The mere listing of this property is so cataclysmic, its outcome will be a major forecast of future development and civic attitudes and trends in Los Angeles. If sold, it will most likely be to a developer, who will choose to split the land into its original 5 parcels to maximize profit. To take full advantage of the incredible 360 degree views, the homes will in turn be highly visible to those down below. This will dilute the potency of the Hollywood sign, which as it stands now, is surrounded exclusively by green city-owned hillside. It is still possible that it might be reclaimed by the city, though not for the listing price, which is arguably inflated. Even less likely, a civic-minded philanthropist might buy the land and deed it to the city amidst much fanfare and corporate PR. Most likely however, the price will be reduced and have to sit a while longer, or it will be taken off the market. I can't vouch for Fox River's recession-era health. Whatever happens, you can be sure there will be plenty of emotional litigation - rarely does a single sale of land imply such a drastic alteration to the existing landscape, physically or visually.

Oh and sorry - I forgot to ask... Interested? Contact Sarah Blanchard at 424-202-3216