A star-studded secret beach hidden behind a green facade in California has emerged as one of the most desirable real estate locations in America.
Local real estate agents call Malibu’s Paradise Cove “Billionaires’ Bluff,” a mile-long stretch of beach that many consider the coastal equivalent of New York City’s exclusive Billionaires Row near Central Park.
This ultra-exclusive community is located just 35 miles from downtown Los Angeles, Home to some of the world’s most famous celebrities and businessmen – and regularly breaking records for the most expensive properties ever sold in the state.
Venture capitalist and tech mogul Marc Andreessen, who recently threw his weight behind Donald Trump’s presidential campaign, held the record for the most expensive home sale in the area after paying $177 million for a seven-acre compound in 2021.
Meanwhile, Steve Jobs’ widow, Laurene Powell Jobs — a close ally of Vice President Kamala Harris — has amassed a $170 million real estate empire in the Gulf through four purchases since 2015, including a recent $94 million acquisition.
“The wealthy like to congregate and they have congregated here,” local agent Leonard Rabinowitz told The New York Times. Wall Street Journal.
Paradise Cove, a secluded stretch of Malibu coastline, has become the ultimate destination for luxury real estate.
Paradise Cove features a star-studded community including Beyoncé, Jay-Z, Marc Andreessen, Paul Jobs, Jan Koum, Edward H. Hamm Jr., Byron Allen, John McEnroe, Mark Burnett and Leonardo DiCaprio (to be added later)
Recent years have seen a wave of high-stakes real estate deals, cementing this stretch of coast as California’s most popular beach address.
Since 2020, three homes have sold for more than $100 million in the area, accounting for a third of all similar deals in the Los Angeles area during that period, The Wall Street Journal reported.
In 2023, music power couple Beyoncé and Jay-Z purchased the 42,000-square-foot compound for $190 million in cash.
This May 2023 deal briefly held the title of most expensive home sale in California until June of this year,
Before Beyoncé’s purchase, businessman Marc Andreessen, who supported Republican presidential candidate Donald Trump, and his wife, Laura Arrillaga Andreessen, held the record for the most expensive home sale in the area.
In 2021, they acquired a seven-acre estate formerly owned by fashion moguls Serge and Florence Azria for $177 million.
The property includes a 10,000-square-foot main house, as well as two guest houses, a theater and a spa.
In 2023, music duo Beyoncé and Jay-Z purchased a 42,000-square-foot compound for $190 million in cash (pictured). The May 2023 deal briefly held the title of most expensive home sale in California until June of this year.
Before Beyoncé’s purchase, entrepreneur Marc Andreessen and his wife, Laura Arrillaga Andreessen, held the record for the most expensive home sale in the area. In 2021, they acquired the 7-acre estate for $177 million. The property includes a 10,000-square-foot main house, as well as two guest homes, a theater and a spa.
Located just 35 miles from downtown Los Angeles, this ultra-exclusive community is home to some of the world’s most famous celebrities and businessmen.
The area has also attracted other high-profile buyers.
WhatsApp co-founder Jan Koum has combined two adjacent properties for a total of $187 million between 2020 and 2021.
In 2023, film producer Edward Hamm Jr., known for Get Out (2017), The Box (2009), and God Bless America (2011), bought a home from gaming moguls Jonathan and Helen Musk for $91 million.
In 2022, media mogul and Entertainment Studios founder Byron Allen purchased a Malibu property from Public Storage heiress Tammy Hughes Gustafson for $100 million.
These newcomers join an exclusive club of celebrities already residing on the slope – including tennis great John McEnroe, Mark Burnett, creator of The Apprentice, and Carrie Clark, widow of legendary TV host Dick Clark.
A number of celebrities have already resided on the slope for years, including tennis great John McEnroe (whose home is pictured), Mark Burnett, creator of The Apprentice, and Carrie Clark, widow of legendary TV host Dick Clark.
Pictured: A map of Malibu, California, showing the exclusive area called Paradise Cove Bluff.
Pictured: Barbra Streisand’s mansion, which she and her husband bought for $16.5 million.
In addition to the star power in the neighborhood, Leonardo DiCaprio is currently building a home in Paradise Cove.
He acquired Burnett’s estate for $23 million in 2016. The land was previously owned by famed director Ridley Scott, known for his roles in Alien (1979), Gladiator (2000), and other science fiction and historical drama films.
But why Paradise Bay?
The name of the game is total seclusion while offering enough acreage for moneymakers to enjoy the fruits of their labor, John McNicholas, a real estate agent with Compass in Los Angeles, told the Daily Mail.
“Paradise Bay Cliffs is the only place where a celebrity or billionaire businessman can have that much privacy on the beach while still being less than 35 minutes from the west side of Los Angeles,” McNicholas said.
Powell Jobs (pictured), widow of the late Apple founder Steve Jobs and chairwoman of Emerson Collective, has expanded her Paradise Cove campus with a $94 million purchase. The latest acquisition brings her total investment in the Gulf to more than $170 million, raised through four separate transactions between 2015 and 2024.
The appeal of Paradise Cove lies in its exclusivity, large property sizes and direct access to the beach without excessive visibility.
He added that property values in Paradise Cove have risen dramatically due to a severe shortage of homes for sale in Malibu.
“Inventory is already limited, but it becomes even more limited as the supercomputers are combined together across multiple batches.”
High prices usually deter most buyers. In fact, many homeowners in the Gulf are so wealthy that selling their homes is rarely necessary.
This in turn creates a dynamic where these ultra-luxury properties often become “second-hand mansions” that are passed around among the wealthy.
“Given the elite and highly desirable nature of properties of this calibre, many of these properties are sold in off-market transactions before they become available to the public,” said McNicholas.
Among the few properties currently available is an $85 million Greek-inspired estate owned by former Los Angeles Dodgers owner Peter O’Malley.
O’Malley had owned the 2.5-acre property since 2000, and was selling it after his wife, Annette, died last year.
Paradise Cove and Malibu are exempt from the newly passed mansion tax, officially known as Measure ULA.
John McNicholas (pictured), a real estate agent with Compass in Los Angeles, told the Daily Mail that the name of the game is complete seclusion while offering enough multi-acre land for moneymakers to enjoy the fruits of their labour.
This tax applies exclusively to real estate sales within the city limits of Los Angeles. The additional tax is imposed on residential and commercial properties valued at over $5 million, and rates rise to 5.5% for sales over $10 million.
Since the seller bears this additional cost, it has greatly affected the transactions of high-end real estate in the city.
“This is a huge turnaround for property owners in Paradise Cove, where homes typically sell for over $100 million,” McNicholas said. “Compared to similarly priced properties in Bel Air, within the Los Angeles city limits, property owners in Paradise Cove can save over $6 million in taxes per transaction.”