How Much Will Michael Jackson's Neverland Fetch On The Open Market?

JULY 31, 2014 LEAVE A COMMENT Sources: Forbes - By Zack O'Malley Greenberg | All Things Michael Neverland_Ranchs_gates-e1406830167518-1940x1091 In 1988, flush with the profits of Thriller, Michael Jackson purchased the Sycamore Valley Ranch for $17.5 million. Today, the Los Olivos, Calif. estate is known to the world as Neverland—and its value has changed even more dramatically than its name. As FORBES first reported last night, billionaire Tom Barrack's Colony Capital is preparing to place the 2,700-acre property on sale, six years after it took over a $23 million note on Neverland and became its managing partner. In an interview for my book, Michael Jackson, Inc, Barrack himself suggested the property could be worth as much as $100 million; other real estate veterans have similarly lofty views. "There are only so many mega-properties," said Southern California realtor Josh Altman, also in an interview for my Jackson biography. He believes Neverland could fetch $75-$85 million on the open market. In order to fully appreciate the scope of Neverland, one must visit the sprawling sepia ranch in person. A two-and-a-half hour drive from Los Angeles, the latter portion of the journey occurs on treacherously twisting mountain roads; the property is nestled amidst 67,000 sycamore trees, at the foot of a 3,000-foot peak that Jackson named Mt. Katherine, after his mother. Through the main gate, a mile-long private road winds up to the main house, a seven-room, thirteen-bathroom mock-Tudor with a backyard four times the size of Monaco. Jackson's amusement park rides and his zoo were hauled off long ago (haunted by accusations of child molestation, he moved out of the property after being found not guilty of all charges against him in a well-publicized 2005 trial). There's still a swimming pool with an extra-high diving board, a miniature lake and a two-story edifice that once held Jackson's vaunted video game arcade. Other buildings include a lakeside guest house, a full-sized movie theater and a redbrick replica train station, which sits atop a knoll with a massive functional clock made of flowers and the word "NEVERLAND" spelled in shrubbery on the hillside. "Michael was Peter Pan, it was Neverland," Barrack told me last year. "It was the only place I think that he actually found peace." To be sure, there are others who have placed a much lower number on the property than Barrack and Altman. Neverland has reportedly been valued at $30.3 million by Santa Barbara County, while a 2002 appraisal pegged it at $50 million. For such a unique property, however, all it takes is one eager billionaire or wealthy entity to drastically drive up the price. Don't expect Jackson's estate, which still owns non-controlling share of the property, to buy out Colony. "We are frustrated, bitterly disappointed and saddened that it has come to this," said a representative from the estate in an email earlier today. "Sadly, Michael lost control of Neverland during his life as a result of advice from a former manager. The Estate explored numerous options, including a purchase, but financial, land use and zoning restrictions have made all of the proposed options prohibitive given our duty as Executors to be fiscally responsible in protecting and growing the assets of the Estate for Michael's children." Colony would likely receive the first $50 million or so of any sale (to cover the $23 million note plus tens of millions plowed into the property's upkeep over the past six years). If Neverland's sale price is on the lower end of the spectrum, it's possible that the estate might not receive anything; on the high end, though, Jackson's heirs could receive a multimillion-dollar windfall. In that case, Michael Jackson would also earn posthumous proof that his instincts in buying the property weren't as outrageous as many observers once suggested: a sale of $70 million would represent a four-fold increase in value over purchase price. Read more at Forbes While Estate had 87.5% interest in Neverland it was UNDIVIDED meaning Colony can use entire property and have at least equal decision power. Steve Dennis @SteveDennis71 · 8h @Ivy_4MJ here's what I believe: the Estate will do its utmost to seek buyer interested in preserving Neverland's MJ history. View conversation ReplyReplied to 0 times RetweetRetweeted 3 times3 FavoriteFavorited 0 times More Retweeted by Ivy Pez Dann @Pezdann · 9h Is anyone else tired of feeling like you're literally locked in an institute screaming "I'm not one of the crazy ones though!!!" ??? ReplyReplied to 0 times RetweetRetweeted 8 times8 FavoriteFavorited 5 times5 More Ivy @Ivy_4MJ · 8h @SteveDennis71 Yeah no one still is privy to the specifics of the deal and like I said most of us thought it was partnership. View conversation ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 0 times More Retweeted by Ivy Steve Dennis @SteveDennis71 · 9h @Ivy_4MJ Only beliefs of author matter. JJ's broad understanding of deal in April '08 is in book: CC "partnered" with MJ. View conversation ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · 11h @SteveDennis71 Did you&Jermaine believed this was joint venture with joint decision making based on the info available-like most of us did? View conversation ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 0 times More Ivy @Ivy_4MJ · 11h @SteveDennis71 I was checking Jermaine's book last night and I saw you wrote "Tom Barrack Tom receiving 50 percent ownership of Neverland." ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 0 times More Ivy @Ivy_4MJ · 11h Ditto! RT @Pezdann: Obsession is ugly...literally. ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 2 I don't know why "Nikki" from Young and Restless suddenly tweeting to me when I never ever followed or tweeted to her. ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 0 times More Retweeted by Ivy MJJJusticeProject @MJJJusticePrjct · Aug 1 @Ivy_4MJ Sadly, perhaps even Michael did not understand how his interest was not protected in this deal Tohme brokered wCC ReplyReplied to 0 times RetweetRetweeted 3 times3 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 @MUZIKfactoryTWO and with no commercial possibility / revenue bringing, I don't see why anyone would want to invest at Neverland View conversation ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 @MUZIKfactoryTWO Estate would still owe $24 to $50 M and required to pay that to keep/get back Neverland. View conversation ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 @MUZIKfactoryTWO while it's possible for some1 to take over note/debt from CC (like CC bought it in 2008), I don't get what it would bring View conversation ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Aug 1 @MUZIKfactoryTWO first it's UNDIVIDED interest so it's not possible to divide it like you want. That's the thing about undivided interest View conversation ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Aug 1 .@MUZIKfactoryTWO I agree that Estate isn't buying it back as their statement to forbes points they don't think it's financially feasible. View conversation ReplyReplied to 0 times RetweetRetweeted 0 times FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 .@MUZIKfactoryTWO I don't think Estate is selling. Colony has covered the loan+expenses+interest+ fee and they want to recoup it. View conversation ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 Dear mjap while I'm honored by your never ending interest in me and you are as charming & classy as ever, please let's go back to ignoring ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 3 times3 More Retweeted by Ivy elke hassell @ElkeHassell · Aug 1 @Ivy_4MJ without the other parties agreement or permission. That's what I was meant to believe before it is now revealed thats not the case View conversation ReplyReplied to 0 times RetweetRetweeted 3 times3 FavoriteFavorited 3 times3 More Retweeted by Ivy elke hassell @ElkeHassell · Aug 1 @Ivy_4MJ And you were not the only one who thought that this is what was meant, I also was under the impression that no party can sell View conversation ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 .@SteveDennis71 Yes apparently. It wasn't shown in the accounting though but we were curious about no obvious payments on Neverland recently View conversation ReplyReplied to 0 times RetweetRetweeted 2 times2 FavoriteFavorited 1 time1 More Retweeted by Ivy Steve Dennis @SteveDennis71 · Aug 1 Isn't it also true @Ivy_4MJ that CC's equity increased in relation to scale of its on-going investment/upkeep over the yrs? View conversation ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Aug 1 But if you want to start such initiative and/or want to give your money to such initiatives, go ahead. It's your own free will and money. ReplyReplied to 0 times RetweetRetweeted 5 times5 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Aug 1 and no fan - including me- should be trusted with fundraising for tens of millions $. Plus I don't think it's fans job to "save" anything. ReplyReplied to 0 times RetweetRetweeted 6 times6 FavoriteFavorited 4 times4 More Ivy @Ivy_4MJ · Aug 1 As for my old comments about Save/Buy Back Neverland, I stand by them 100%. Neverland wasn't for sale back then (cont.) ReplyReplied to 0 times RetweetRetweeted 8 times8 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 No fan has perfect information or privy to specifics of deals, we all try our best with the information available and accessible to us. ReplyReplied to 0 times RetweetRetweeted 8 times8 FavoriteFavorited 2 times2 More Ivy @Ivy_4MJ · Aug 1 I believe anyone that is objective & fair would acknowledge and confirm that we didn't have that information before&we didn't know specifics ReplyReplied to 0 times RetweetRetweeted 6 times6 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Aug 1 We didn't know Colony had "right to sell the property at will" before, we learned it just a few days ago and that changed everything. ReplyReplied to 0 times RetweetRetweeted 10 times10 FavoriteFavorited 4 times4 More Ivy @Ivy_4MJ · Aug 1 Here's another comment of mine in which I mention everything depended on the deal that we know nothing about - http://twitpic.com/e9bry7 ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Aug 1 But we didn't know the specifics of the Colony deal and I mentioned this in other comments -which you ignore as you like to cherry pick ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Aug 1 As the information available referred to Colonydeal as "JOINT venture" I assumed it meant joint/collective decision making-hence my comments ReplyReplied to 0 times RetweetRetweeted 6 times6 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Aug 1 Anyone with functioning eyes - that aren't blinded by hate and/or bias- can see that it's not a "lie" and it comes from court documents. ReplyReplied to 0 times RetweetRetweeted 6 times6 FavoriteFavorited 4 times4 More Ivy @Ivy_4MJ · Aug 1 Dear Mjap &Co, it's a FACT that Estate has 87.5% undivided membership in Neverland. It's written in black and white - http://twitpic.com/e9bqqb ReplyReplied to 0 times RetweetRetweeted 11 times11 FavoriteFavorited 6 times6 More Ivy @Ivy_4MJ · Aug 1 okay I'll answer for this once.. ReplyReplied to 0 times RetweetRetweeted 2 times2 FavoriteFavorited 1 time1 More Retweeted by Ivy Toni @_ItsToni_ · Aug 1 So all the boycotters, yapping about Neverland being sold out... Spare me. #TheEnd ReplyReplied to 0 times RetweetRetweeted 8 times8 FavoriteFavorited 5 times5 More Ivy @Ivy_4MJ · Aug 1 that's why Estate said in their lawsuit that MJ did not have independent counsel during Neverland deal .@juney9800 View conversation ReplyReplied to 0 times RetweetRetweeted 7 times7 FavoriteFavorited 4 times4 More Ivy @Ivy_4MJ · Aug 1 Tohme's lawyer was MJ's lawyer RT @juney9800: Curious if Michael had legal representation when negotiating and signing the contract with CC ReplyReplied to 0 times RetweetRetweeted 6 times6 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Aug 1 No. Last I heard Labor commissioner was holding hearings. that was a year ago. RT @loakim45: @Ivy_4MJ have u see newly filed docs ? ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Aug 1 Still ongoing as far as I can tell RT @loakim45: do u know if the court made a final decision about thome's contracts ? ReplyReplied to 0 times RetweetRetweeted 2 times2 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Aug 1 That's what I was talking about "creditor forcing a sale". ReplyReplied to 0 times RetweetRetweeted 1 time1 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Jul 31 RO: "Colony has legal right to sell the property to pay down the debt owed from the loan, interest, management fee and maintenance costs." ReplyReplied to 0 times RetweetRetweeted 6 times6 FavoriteFavorited 1 time1 More Ivy @Ivy_4MJ · Jul 31 .@MJJPEACE but doesn't seem like it's likely unfortunately. Tohme lawsuit is still ongoing. The deal, fees etc are still valid. Just sad. View conversation ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Jul 31 .@MJJPEACE that's what I had HOPED: win case against tohme, nullify Tohme's 10% fee and then use it to negotiate or nullify deal with Colony View conversation ReplyReplied to 0 times RetweetRetweeted 4 times4 FavoriteFavorited 2 times2 More Retweeted by Ivy Michael Jackson ♕ @MJJPEACE · Jul 31 @Ivy_4MJ Can the fact that they're suing Tohme nullify some of the clauses of the deal? View conversation ReplyReplied to 0 times RetweetRetweeted 2 times2 FavoriteFavorited 1 time1 More Retweeted by Ivy Gaby Trussert @Gaby4Justice · Jul 31 Update: New Statement from The Estate of Michael Jackson Last night, we sent you a message from the Estate ... http://tl.gd/nf70pm ReplyReplied to 0 times RetweetRetweeted 8 times8 FavoriteFavorited 5 times5 More Ivy @Ivy_4MJ · Jul 31 I could have never expected such a unfavorable deal and limited control and power. Such a sad situation overall. ReplyReplied to 0 times RetweetRetweeted 7 times7 FavoriteFavorited 4 times4 More Ivy @Ivy_4MJ · Jul 31 I had hoped Estate would pay back the loan and get back control of Neverland but I guess loan+expense+interest+ 22% fee made it unfeasible. ReplyReplied to 0 times RetweetRetweeted 14 times14 FavoriteFavorited 9 times9 More Ivy @Ivy_4MJ · Jul 31 I blame Tohme for this Neverland sale situation. ReplyReplied to 0 times RetweetRetweeted 28 times28 FavoriteFavorited 18 times18 More Ivy @Ivy_4MJ · Jul 31 Add to that use ENTIRE property, equal or more decision making power and "right to sell the property at will", you end with a terrible deal. ReplyReplied to 0 times RetweetRetweeted 11 times11 FavoriteFavorited 3 times3 More Ivy @Ivy_4MJ · Jul 31 The deal required MJ to pay back Colony, the loan, expenses, interest and on top of that a 12% fee and another 10% fee to Tohme. ReplyReplied to 0 times RetweetRetweeted 15 times15 FavoriteFavorited 7 times7 More Ivy @Ivy_4MJ · Jul 31 Now it is a lot more clearer to me why Estate sued Tohme and called the Neverland deal extremely unfavorable for MJ. ReplyReplied to 0 times RetweetRetweeted 12 times12 FavoriteFavorited 4 times4 More Ivy @Ivy_4MJ · Jul 31 We also just learned that the Neverland deal gave Colony "right to sell the property at will". that's something we didn't know before. ReplyReplied to 0 times RetweetRetweeted 10 times10 FavoriteFavorited 7 times7 More Ivy @Ivy_4MJ · Jul 31 What we are seeing now is probably a creditor forcing a sale - very similar to a bank foreclosing & selling a house when mortgage isn't paid "I will never, ever sell Neverland. Neverland is me" "Neverland brings out the child within me" #DontSellNeverland "Neverland is me, the Essenes of who I am. That is why I never sell Neverland." - Michael Jackson #DontSellNeverland "I would never sell Neverland,Neverland appeals to the child inside of every man, woman and child" -MJ #Neverland ♛ MJ ♛ @1_Moonwalker_1 · Aug 1 "I wanted to have a place that I could create everything that I never had as a child." - Michael Jackson #SaveNeverland #DontSellNeverland "It starts with us. It's US. Or else it'll never be done." - Michael Jackson