Los Angeles real estate firm The Agency sells homes complete with art and furniture. The piece on display is called “The McCoys II” (2019) and is by artist Shaina McCoy.
Agency | Niels Tim
When Paul Lester joined a luxury real estate agency in Los Angeles, he decided to organize a landmark real estate show in Beverly Hills: he effectively turned it into an art opening, inviting potential buyers for the house — and those who might be interested in purchasing the artwork he displayed in it.
Individual works of art, as well as property, were sold for a premium. “We were successful in selling the house for a larger amount than you might expect, because the whole package was considered high,” Lester told CNBC by phone. The buyer also purchased some of the artwork on display.
That was more than a decade ago. Since then, Lester has made it his mission to display “important” works by contemporary artists — along with designer furniture — in the high-end properties he lists, which are often available for purchase.
Lester, a partner in real estate firm The Agency, is currently selling several newly built luxury homes in Beverly Hills designed by architecture firm Olson Kundig, and has a “full collection” of artwork in a few of them.
Paul Lester, a partner at The Agency in Los Angeles, said he has made it his “mandate” to display art in the properties the company sells. Shown here is the interior of a house that is part of a collection known as The Houses at 8899 Beverly. The artwork is “Rainbow Universe” (2015) by Lazarus.
Agency | Niels Tim
Prices for the homes — known as The Houses at 8899 Beverly — start around $5 million. Rather than just being “occasional” pieces brought in temporarily, artwork and furniture are also available for purchase, Lester said. The agency worked with consultancy Creative Art Partners on the homes, which feature the work of a number of artists, including Michelle Marie Lee, an art teacher, and Irvine Pascal, a British sculptor and painter.
Move-in ready homes, known as ready properties, have become popular with buyers. “We're seeing people more than ever — especially with new construction — wanting a complete package that works well,” Lester said. “There were circumstances where people would walk in and say, ‘I want this room… I'll take the furniture and I'll take the art. I definitely like it that way, and is it possible?” “And we are able to say yes, it is,” Lester said.
David Knowles, founder of art consultancy Artelier, which supplies real estate projects in the UK, US and Middle East, said the trick in choosing artworks for such properties is to ensure they fit well with their interiors.
“It's hard to get some kind of uniqueness and personality if what they're selling is an off-the-shelf project, because art has to appeal to a broad audience,” Knowles told CNBC by phone. “Art needs to feel like it belongs there,” he said.
To do this, Artelier may commission pieces that have a connection to the area in which the house is located, and artists are asked to create pieces that precisely fit the dimensions of the space. This tends to work better than borrowing work from a gallery to display at home temporarily, Knowles said.
Artelier, an art consultancy, works to fit the dimensions of a wall or panel, as seen in this living area in a house in Eaton Place, London.
Fenton Whelan | Artillery
The Leicester team discusses whether art should match or contrast with the home's design. They may have chosen a colorful palette for a more monochromatic feature, or a mix of abstract works and portraits, Lester said. Sometimes work is assigned to real estate; Other times, Lister may ask artists if they have pieces available in a certain color.
Artelier has sourced artworks to hang on the walls of some of the world's most prestigious addresses, such as One Hyde Park in London, residences in Dorchester's One at Palm project in Dubai, and for an apartment within Eighty Seven Park, an oval-shaped building. Beachfront building in Miami designed by Renzo Piano.
Knowles said London property developers were keen to attract foreign buyers looking for holiday homes in the city. The consulting firm is commissioned by interior designers or property developers to source artwork for wealthy property buyers who “know what they like, and have good taste. Or they have someone working for them who has good taste,” says Knowles. He said.
Artiller often serves as a bridge between artists and developers or property buyers, groups that “come from two different worlds,” Knowles said. He works with artists to help them understand that their work can be considered a luxury product and that clients expect something “exceptional.” At the same time, Artelier may explain to customers that something like a custom ceramic piece will likely have blemishes, such as finger marks.
Artelier commissioned a group of artworks for the public areas of One at Palm Jumeirah, Dorchester Collection, a residential building in Dubai. The artwork displayed is by textile artist Christy Kuhn.
Studio Tooz | Artillery
For Lester, the artwork at The Houses at 8899 Beverly creates an additional marketing opportunity. “We're about to start… a campaign highlighting artists… which I've found to be very effective. So, in effect, you have another opportunity to tell the story of the house because you're telling the story about the art as well,” he said.
The homes are relatively affordable compared to other properties Lester has on his books. “I have a lot of houses now that are being offered privately… Maybe the house is worth $60 million, $70 million, but the art in the house is probably worth $200 million,” he said. Buyers at this level may inquire whether the seller would consider selling one or two of the artworks, Lester said.
While estate agency Savills does not often sell artworks as part of a property deal, the company's co-chairman of the central London flagship, Richard Guttridge, advises clients to leave artworks on the walls during viewings.
“It's an accessory that a lot of people recognize. At the top end of the market, it's a lifestyle part,” he told CNBC by phone. Gutteridge oversees sales in what he calls the city's “golden postcode” – Belgravia, Chelsea, Knightsbridge and Mayfair. A home's art collection is sometimes worth the value of the property, he said.
“As much as it helps in the (sales) journey, it's very good for (buyers) to refocus on the home… the artwork often blows people's minds,” Guttridge said.
