Peter Thiel, the billionaire venture capitalist and co-founder of PayPal, has quietly purchased Casa Encantada, a sprawling 40,000-square-foot Bel-Air estate considered one of Los Angeles's most iconic properties. The acquisition, made through a limited liability company at a foreclosure auction in Pomona this July, was first reported by the Wall Street Journal. Thiel paid $130 million for the mega-mansion, a sum that ranks among the highest home sales ever recorded in Los Angeles.
While $130 million is a significant figure, the purchase might be seen as a considerable discount depending on one's perspective. The previous owner, the late businessman Gary Winnick, had initially sought $225 million for the property in 2019, and later raised his asking price to $250 million in 2023. Winnick never secured a buyer and died in 2023, leaving behind a complex financial situation. Records indicate that Casa Encantada had been put up as collateral to secure a loan from the CIM Group. Following Winnick's passing, his family relisted the estate for $170 million in April before it ultimately went to auction three months later.
The estate itself is a remarkable glimpse into Old Hollywood's grandeur. Built in 1938 by James Dolena, a Russian-born architect known for designing several trophy properties across Los Angeles, Casa Encantada sits on 8.4 acres. Its terraced lawns and expansive gardens offer commanding views over the Bel-Air Country Club. Inside, Ionic columns greet visitors at the entry, leading to a foyer with dramatic sweeping staircases beneath 14-foot ceilings. The stately interiors feature seven bedrooms, 20 bathrooms, multiple dining rooms, various lounges, and a walnut-paneled library. Outdoors, the property boasts elegant fountains, more gardens, a tennis court, and a 60-foot tiled pool.
Casa Encantada has a history of high-profile owners and record-setting sales. Hotel magnate Conrad Hilton acquired the property in 1950. After his death, it changed hands in 1980, selling to financier David Murdock for $12.4 million, which was a national price record at the time. It made headlines again in 2000 when Winnick purchased it for $94 million, setting a second national price record. Over the years, Winnick invested tens of millions of dollars into the estate's extensive renovations. He engaged interior designer Peter Marino for the work, which involved meticulously tracing the home's original furniture and sculpting moldings using historically accurate techniques. According to Architectural Digest, this intricate restoration effort required approximately 250 workers on site daily.
For Peter Thiel, Casa Encantada joins an extensive and diverse real estate portfolio. His holdings span the globe, including compounds in Hawaii and New Zealand, as well as residences in Miami and Washington, D.C., alongside a recently acquired mansion in Buenos Aires. Interestingly, the unassuming Pomona foreclosure auction where Thiel secured this iconic Bel-Air property has a track record of handling other significant, if unusual, sales over the years. This includes the sale of a prime piece of land in Beverly Hills that was once listed for $1 billion but ultimately sold for $100,000, underscoring the unpredictable nature of such auctions.