Playboy Mansion Sale Is Next Step in Business Transformation:
Asking $200 million, Playboy Enterprises plans to reinvest the proceeds of the sale; a buyer would have to remodel the ‘dated’ interiors and let tenant Hugh Hefner remain
Jan. 11, 2016 1:41 p.m. ET
The Playboy Mansion—the sprawling Los Angeles house that over four decades came to embody Hollywood’s sybaritic party culture—is going on the market for $200 million.
Longtime resident Hugh Hefner has no plans to leave: Seller Playboy Enterprises is stipulating Mr. Hefner, 89, be allowed to remain at the home for the rest of his life.
Founded by Mr. Hefner in 1953, Playboy helped usher in the sexual revolution, but more recently has shed staff and reorganized its business. Scott Flanders, Playboy Enterprises’ chief executive, said in a statement that the sale of the mansion “enables us to continue to reinvest in the transformation of our business.” “The Playboy Mansion has been a creative center for Hef as his residence and workplace for the past 40 years, as it will continue to be if the property is sold,” he added.
Founded by Hugh Hefner in 1953, Playboy helped usher in the sexual revolution, but more recently has shed staff and reorganized its business.
On roughly 5 acres, the property is one of the largest in Holmby Hills and borders the Los Angeles Country Club. According to listing agents Mauricio Umansky of the Agency and Gary Gold and Drew Fenton of Hilton & Hyland, the mansion is roughly 20,000 square feet. The property includes an elaborate swimming pool and grotto, zoo and game house.
The estate is in need of renovation. “The house will require remodeling, for sure,” Mr. Umansky said, though he added that the value of the land alone is close to $100 million. The home’s interiors are “dated and will need to be remodeled and redesigned,” he said. Moreover, a buyer may want to increase the size of the house.
Acquired by Playboy Enterprises in 1971 for $1.05 million, the mansion is the longtime home of Mr. Hefner, who rents the mansion from the company for a “small, nominal amount each year,” according to a Playboy spokesperson. While Mr. Hefner’s remaining at the property is “nonnegotiable,” Mr. Umansky said, the exact terms of the arrangement will be determined during purchase negotiations.