Tuesday, April 6, 2010

Ex-UVIMCO CEO Christopher Brightman Lists Blandermar Farms Estate For $2,750,000.00

Christopher Brightman, the University of Virginia Investment Management bigwig who oversaw the $1 Billion endowment loss (-22%) in 2008, has listed his home for sale.   Brightman, who like many other university investment managers used the "Yale Model," recently announced his resignation due to a "personal situation."

Asking: $2,750,000
Paid 2005: $2,125,000
Assessed 2010: $1,652,900

The Asking Price is 40% more than the tax assessment, and 22% higher than the 2005 purchase price.  If you look at other listings, these percentages are entirely consistent with Charlottesville/Albemarle seller perceptions of increase in real estate "value,"  despite the glut of homes available (see below).  (And in a recent post, this blog wondered if "22%" would mean anything when Brightman listed the home; little did we know....) 


MLS# 475678,  3035 Blandemar Drive: 6,495 sq feet 4 beds, 4 full and 2 1/2 baths on 21.10 acres in the "Blandemar Farms" subdivision south of Charlottesville.

So...What's going on with all the $$$ listings all over Albemarle County?  Why are so many supposedly monied owners trying to get out of here?  Of the 91 single family homes that have come on the market in the past 7 days in Albemarle County, 13 have asking prices between $1M-$2.75M.  Of the 753 single family homes currently listed, 105 have pricetags between $1-3M; there're about 50 listings priced higher, going up to $18M. 

Related Reading:
Business Insider: Sorry, UVA Alumni, We Gambled Our Endowment and Lost
PI Online Post About Brightman Resignation

The CAAR listing...click for larger image in new window.

Top image courtesy/copyright Albemarle County; bottom image copyright CAAR.

6 comments:

Anonymous said...

Makes one wonder. If the economy 'is on the mend' and recovery will be robust, why sell now? Perhaps the old bankers axiom . . . get out first.

c said...

A better economy does not equal higher home prices.

Given that homes are levered investment assets, higher home prices would require--a) more earnings power for borrowers, b) lower interest rates, c) longer mortgage durations, d) weaker lending standards, or some combination.

A better economy might boost a), but not the other three.

craigger said...

C,

Sadly, printing money will raise all prices, regardless of the reasons you listed.

http://research.stlouisfed.org/fred2/series/BASE

c said...

Craigger, over the very long term (20 years), housing prices will rise b/c of general inflation.

Higher general inflation though will push interest rates higher, which will push housing prices lower.

See, Japan, since 1989, for an example of real estate prices that have lost significant ground relative to the prices of consumer goods.

To have inflation you need both monetary supply (lower interest rates help) and velocity.

John Doe said...

Deflation and Inflation mix:

Deflating personal assets: real estate, employment, personal income, retirement funds

Inflating cost of living: energy, food, taxes, health care, insurance, transaction fees, consumer interest rates

Real estate values are declining in Charlottesville but asking prices remain high because current mortgagedebtors are overleveraged.

But buyers live in the same world as the debtors and aren't going to do private bailouts

craigger said...

C,

I'm aware that velocity is needed to determine the total MS, but velocity will revert back to its mean (higher, see link below), while I would be shocked if the monetary base is reduced (Gov running a surplus and lighting dollars on fire, really?). I was really only arguing that home prices have a lot of monetary tailwind going for them right now, which could make buyers even more frustrated next year. I have no opinion on the relative price increase of housing, my only opinion is that they are priced nominally, and there is a high likely hood that the nominal prices of everything are about to go up substantially because of gov money printing. Japan had massive deflation, including commodity price inputs, for almost all of the 90's. They borrowed money, but did not print (relative to the US) that much of it (I would argue they are about to print a hell of a lot however).

http://en.wikipedia.org/wiki/File:M1VelocityEMratioUS052009.png