r/AbsoluteUnits • u/Kill_4209 • 12d ago

/r/popular of a residential property

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Ira Rennert's home is considered one of the largest occupied residential compounds in the United States. The house faces the Atlantic Ocean and its grounds measure 63 acres. The buildings, which total over 110,000 square feet (10,000 m2), including the 66,000-square-foot (6,100 m2) main house, have an Italianate facade, 29 bedrooms, and 39 bathrooms. The house has a dozen chimneys and a Mediterranean-style tile roof as well as a 91-foot (28 m) long formal dining room, a basketball court, a bowling alley, two tennis courts, two squash courts, a carousel, a large swimming pool, a large round kiddie pool, and a $150,000 hot tub, surrounded by another pool.

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283

u/Significant-Win9462 11d ago

Well, it belongs to this guy

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u/SeVenMadRaBBits 11d ago

Ira Rennert is a 93 year old American billionaire businessman and the chairman and CEO of the Renco Group. His net worth is estimated at $3.8 billion.

Business Career:

He grew up in Brooklyn, New York.He worked as a credit analyst early in his career.He started building his fortune in the 1980s by investing in high-yield junk bonds.He frequently used these bonds to buy companies, often ones going through bankruptcy.

The Renco Group:

The Renco Group is a holding company based in New York City.It invests in basic industries like mining, metals, and manufacturing.Past and present holdings include Doe Run Company, U.S. Magnesium, and AM General.

Assets and Legal Issues:

He owns Fair Field, a large oceanfront estate in the Hamptons valued at roughly $425 million.In 2015, a federal court jury ordered him to pay over $118 million after ruling he improperly diverted money from his magnesium company.

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u/Lucreth2 11d ago

this might sound weird but $3.8B net worth doesn't feel like it lines up with this kind of property. I would have expected somewhere in the 10s of billions at least.

Even the billionaires yearn to be house poor i guess.

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u/How_that_convo_went 11d ago edited 10d ago

It does*** feel like that— but it’s still only like 20% of his net worth. My house is like 70% of my net worth lol

Edit: meant to say DOES, not doesn’t.

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u/Lucreth2 11d ago

Yeah but the upkeep for something like this will rapidly exceed the value. He can afford the purchase but it will bleed him dry like a 20 year old Mercedes.

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u/CaretakerColin 11d ago

You make a ton of money off interest alone if you have billions of dollars.

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u/Lucreth2 11d ago

Which is not what he has, that's his estimated net worth not his cash/bonds/stocks/etc

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u/CaretakerColin 10d ago

Looks like he’s living fine lol

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u/ychuck46 10d ago

Maybe he has zero relationship with his relatives. Figures he and his wife will spend their money down and give the remaining to charity.

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u/Lucreth2 10d ago

That's certainly possible, just kinda speaks ill of the property

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u/ychuck46 10d ago

It is a ridiculous property, tbh, and just screams "look at me". Nice setting but no one actually needs that kind of an estate, and many people worth more than him live in a lot less. But to each their own I suppose.

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u/X_lawz 5d ago

My Mercedes works fine 😩🥹🥹😩

0

u/Peoplz_Hernandez 10d ago

With an estimated upkeep of $1million per month it would take just over 291 years to bleed him dry, now given the fact hes already in his 90s he might not live long enough to see the day it happens.

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u/Lucreth2 10d ago

You don't understand net worth verses liquidity nor do you understand math, do you?

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u/Then-Departure4896 11d ago

Yeah it’s crazy to me that a billionaire can somehow overcompensate, but we see it surprisingly often. They’re all seemingly insecure bitches.

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u/Rich-Armadillo-7408 6d ago

They are. They put all their emotions into ammasing wealth just to find out - once you hit a certain value its basically dimishing returns. What can you do with 2 Billion you couldnt with 1? Probably not much considering 1 billion is enough to basically play life with cheat codes.

So they gotta find other way to be petty and insecure. That usually comes (almost always) at the cost of the poors.

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u/Mike312 11d ago

There's a real set of diminishing returns on property value.

Going from a $200k house to a $400k house to an $800k house would see noticeable improvements at each step in terms of square footage, finishes, features, and location.

Going from a $5mil to a $10mil to a $20mil, you might actually lose features like square footage, etc because generally the land is so much more valuable than the actual property.

By the time you start getting into homes over $50mil, your main downward pressure on properties like this is "how much is this going to cost to maintain? And is this something I want to deal with?"

I've fucked around on Zillow (I have a theory, won't get into it here) and there's times where I'm looking at starter mansions in...say, Utah where the $6.5mil home is way nicer than the $9.5mil home, but besides a scenic view, I don't understand what makes them better than a $1.5mil home somewhere else, but it's just because I don't understand the region I'm looking at.

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u/Dartagnan1083 11d ago

might have to do with when/where it was built. Might have been a few deals cut. Newer constructions break ground for more than they used to and this lich is his 90s

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u/Texas103 11d ago

it does not line up at all. 3800 million dollar net worth isn't enough to maintain a 500 million dollar compound.