What Commercial Real Estate Type Do Celebrities Prefer in California?

November 12th, 2013 by Diane Moore

 More superstars than anywhere else live in California, home of Beverly Hills and Hollywood, right where all the exhilaration is. Actually, Hollywood Hills is considered to be the best place to have a house by many celebs than anywhere else. Stars with homes here are afforded privacy thanks to its distant nature, its narrow, crisscross roads which make it hard for spectators to come and look around. In addition, the location has great views, as Christina Aguilera and Justin Timberlake will both confess.



Then of course there is the legendary Beverly Hills, where you will find loads of the most luxurious houses in the United States, as well as such superstars as Oprah Winfrey, Britney Spears and dozens of others. And do not forget Malibu, that has instant access to the beach and fantastic ocean views, the number one choice of celebrity superstars including Richard Gere, Jennifer Aniston and more.


Real estate properties are the all time attractions for prominent figures and celebrities. From luxury apartments to high end mansions, celebrities are spending millions of dollars to call these places their home. Commercial real estate has become one good choice for celebrities to invest in as well as to make money out of it.


What places are worthy investing in real estate in California?


Southern California


Here you will find the famous cities like Los Angeles and San Diego. You can also bear witness to the stunning beaches, theme parks, museums, and zoos. Southern California also brings you near the superstars of Hollywood.


Central Coast California


If you need to be closer to peacefulness and nature, the central coast of California will serve as a tourist attraction and as a better home. You will get more exposure to the natural wildlife in the Santa Barbera Zoo and the beaches.




This is a management demanding investment as the turn-over rate is high. The leases are often short termed at one year of month-to-month. As potential tenants move in and out, you would have to spend some cash to get the unit set for occupancy. The key to successful apartment investment is to:


  • Minimize or control the expenses. This may sound like an unimportant task until you see the operating expense list provided by the real estate property manager. These operating expenses include: accounting, advertising, bank fee, capital improvement, cleaning, coin laundry subsidy, collection of fees, insurance, garbage disposal, landscaping, maintenance, legal (eviction) fees, offsite property management, pest control, onsite property management, painting, sweeping, repairs, water, utilities, property taxes, and security.
  • Stay away from areas with rent control
  • Invest only in properties in a good location with no deferred maintenance.


Otherwise, you may end up having negative cash flow or getting little cash flow.


In general, apartments are harder to sell but easy to buy. There are always loads of them on any markets. The good thing about apartments is that they always tend to have a high occupancy rate as everyone needs a roof over his or her head. That is why most celebrities in California tend to invest in apartments.


Special Purpose properties


Special purpose properties are properties designed for a certain business, e.g. gas stations, restaurants, and hotels/motels.




Some commercial real estate investors love to invest in brand name fast food restaurant such as Pizza Hut, and Burger King. These are single tenant properties with long-term absolute triple net lease which usually require no management responsibilities from the owner. Nevertheless, the cap rate or rental income for these restaurants is usually lower in the 5 to 7 percent range.


Gas station


When you purchase a gas station, you buy both the gas station and the real estate business. Several gas stations also have car repair bays and convenience stores. The return margins for gas stations are fixed at 10 to 20 cents per gallon but are pretty high for the convenience store.




Once you purchase a hotel/motel, you buy the property and a 24 hour a day, 365 days business. Hotel/motel business requires marketing skills and hard work to get the rooms filled. Hotel rooms are worthless if they are not filled. Hotel/motel businesses tend to be seasonal and may be affected by political events and economic downturns.


Reasons why most celebrities prefer to invest in California commercial real estate




Location is a very important factor in the commercial real estate business. California is closer to the beach, and the closer the property it is to the beach the more expensive the property will be. Also, the greater appreciation the property will experience in due course. For example, a single family house in central San Francisco would cost around 1,300,000 dollars.


California has the best as well as the most fertile agricultural lands in United States, and this is one of the main reasons for the improved progress for California commercial real estate. Aerospace, agriculture and petroleum and computer and information technology are some of the prosperous industrial sectors in California. If California was considered to be a separate country it would have been the 6th largest economy in the planet. California is a hub for the entertainment industry and one of the famous tourist destinations. Its commercial real estate prices have experienced a remarkable growth due to the increase of the per capita income of the residents. California is also considered to be a perfect investment zone for commercial real estate and corporate people.


Well- known real estate moguls


Oprah Winfrey


Oprah is best known for her TV talk show, but this multi-millionaire is also a real estate tycoon. Oprah Winfrey is the owner of loads of properties across United States, such as a lakefront condo in Milwaukee, three condos in Atlanta, four acre property in Greenwich, and a condo in Fisher Island. In addition, her major property is her 42 acre real estate in Montecito, California, which is prominently known as “The Promise Land”. This well-known mansion includes teahouse, rose-garden with the views of mountains and ocean.


Sandra Bullock


Sandra Bullock, the American actress is another commercial real estate mogul who has loads of terrific properties in her kitty. Sandra has homes in different other locations, which includes a historic home in New Orleans Garden District, and a lakefront property in Austin. After her divorce with her ex husband Jesse James, Sandra sold their Sunset Beach house in California for 4.5 million dollars. In 2007, Bullock stood at 14th position in the list of richest female celebrity, and had an estimated wealth of 85 million dollars.


Jennifer Aniston


Jennifer Aniston is well known for her TV sitcom Friends, in which she played the character known as Rachel Green. Jennifer has also made through the list of commercial real estate moguls. This actress has a number of exceptional properties. Jennifer has homes in  Beverly Hills and Malibu. But her main property is her 5 million dollars west Village penthouse. However, this American actress sold her Beverly Hills house named “Zen Like” which was customized by Stephen Shadely design which fetched about 38 million dollars.


Jennifer Aniston’s real estate latest purchase was an 8,500 square foot house built in 1965 and designed by A. Quincy Jones. The mansion sits on a 3 acre grassy hill that offers not only a great view of the ocean, but also a grand view of the down town area. Actually, the grounds are quite exclusive, containing a vineyard, guest house, covered kitchen area, pool, lots of walking paths through landscaping and several ponds.


While the mansion has a look that is a combination between Chinese Zen, Ultra-modern, and office building, Jennifer got it at a steal for just 22 million dollars. The original market price for the mansion was 29 million dollars, but it dropped to 24.9 million dollars when the mansion didn’t sell. While she saved only 2.9 million dollars of the present market price, the final offer was a cool 7 million dollars less than the original asking price, almost a 25 % discount.


Bruce Willis


This action movie hero of Hollywood is also known for his commercial real estate interest. Willis has loads of properties around the country, which includes a home in Malibu, California, a condo at Trump Tower, a ranch in Montana, and many other properties in Sun Valley, Idaho. Bruce’ properties include a theater, a nightclub-Mint, a private mansion, and the E.G Willis building.


Brad Pitt


Brad Pitt is well known for buying luxurious real estate all over the world. This renowned Hollywood actor and his better half Angelina Jolie are known for their spending in commercial real estate. Brad Pitt and Angelina Jolie have together bought and sold homes in Malibu, Scotland, Los Angeles, New Orleans, and French Riviera. In the year 2006, Brad Pitt founded “Make It Right Foundation’ because of his continued interest in green buildings, humanitarian causes, and architecture. After the occurrence of the Katrina Hurricane, Make It Right Foundation provided 150 sustainable houses to the victims of the Hurricane with the help of housing and workers professionals in New Orleans.


Donald Trump


When it comes to commercial real estate tycoons, Donald Trump is one of the best examples to mention. Trump is one of the best known personality in the field of commercial real estate. This American businessman is the son of Fred Trump, a prosperous real estate developer of New York City. Donald Trump is the Chairman and the President of The Trump Organization. Trump is well known for his collective number of Casinos, Hotels, and other commercial real estate properties in New York City as well as all over the world. Trump is mostly well-known for his prime Manhattan real estate that includes 1260 Avenue of the Americans, Trump Tower, and 40 Wall Street.


Therefore, you can also feel like a star and invest in prosperous commercial real estate in California to make you feel $1000.000. Remember that California offers great locations and views…Well, that’s what Christina Aguilera and Justin Timberlake admitted.


Diane is a highly-qualified translator of the English, Italian and Spanish languages. She has studied extensively in Italy and Switzerland. She writes about a variety of financial services industries including insurance. She has a love of life and a curiosity that drives her both personally and professionally.

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