Michael Jackson‘s famed Neverland Ranch could be yours for $60 million. The late King of Pop’s 2,700-acre property in Santa Barbara County, CA, known for its over-the-top features including full-scale carnival rides and arcade games, is set to be put on the market.
Billionaire Tom Barrack’s Colony Capital Firm took over the estate’s $23 million debt from Jackson in 2007 as a personal favor to Jackson. They entered into a joint agreement that for every dollar the company invested in the property, its equity would increase. Thus, while Jackson retained a stake in the property, the percentage decreased drastically over time.
The upkeep of the estate cost Colony approximately $5 million per year, totaling an investment of about $50 million over the course of the past seven years. They also retain the right to sell the property at will, leading to the decision to put it up for sale.
Many options were explored for transforming the property into an attraction or some other entity, but the biggest problem encountered is that it is very difficult to access, and would not smoothly be able to accomodate an influx of traffic. Moreover, the $702 million IRS bill that the Jacksons are currently fighting doesn’t leave much room for such an undertaking.
A representative for the estate reported to Forbes, “We are frustrated, bitterly disappointed and saddened that it has come to this. Sadly, Michael lost control of Neverland during his life as a result of advice from a former manager.”
Speaking of MJ, pay homage to the King at our very special evening of Stevie Wonder vs. Michael Jackson featuring members of Lettuce, Snarky Puppy and more, August 13 at Highline Ballroom!
[Via Forbes]