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This article discusses and provides a definition for "trophy property." It suggests that an appropriate definition is one that consists of quantifiable attributes such that a researcher can compare the relative quality of property in any particular land use category. Based on this comparison, only the very best properties achieve the "trophy" distinction and, consequently, the highest price.
What is a "trophy property"? It is understandable when one reads Sotheby's International Realty Guide to Distinctive Properties or the Robb Report, or even the Wall Street Journal advertising sections, where copywriters scream out "Trophy Property For Sale." It is a catchy phrase, and who would not want to own a trophy property? But, what type of property would the buyer have? Just what is a trophy property?
A review of some key textbooks, such as the Dictionary of Real Estate Appraisal,1 The Appraisal of Real Estate,2 Real Estate,3 Real Estate Investors Deskbook,3 and Modern Real Estate,4 do not provide a definition. The National Auction Group, Inc., a firm specializing in the sale of trophy property, provides insight: "to qualify as a trophy property, the real estate must be unique, be in excess of one million dollars, be ideally located and be very desirable to people with resources."5
So, how should a trophy property be defined? A good way to start is to look at some examples of properties that most people would agree are trophy properties. Rockefeller Center, in midtown Manhattan, New York City, on the East Coast and San Francisco's Embarcadero Center on the West Coast are good examples of nonresidential, commercial "trophy" properties. Rockefeller Center, which encompasses 6 square blocks (11 acres) between Fifth and Seventh Avenues, was developed between 1929 and 1940 and contains eleven art deco commercial buildings. It sold in December 2000 for $1.85 billion. The 50-- year-old, 3-million-square foot, four-building Embarcadero property is located at the edge of San Francisco Bay and sold in May 1998 for $1.22 billion.
Residential trophy properties are also of great interest, and there are some obvious examples. The Seattle metropolitan area community of Medina contains one of the more sophisticated and valuable (if cost is any proxy for value) residential properties. That property is...