Real estate speculators push up prices in Hollywood’s hills of gold

From the January issue: Tourists who flock to the Hollywood Hills for a photo op with the city’s famous sign may imagine that the hills are alive with the impressive mansions of the Silver Screen’s rich and famous.

They are, but many of the homes and building lots are also in the hands of Internet entrepreneurs and speculators — especially in the sections where it’s relatively easy to win permission to tear down existing structures in order to construct custom homes to desired specifications.

The uptick in teardowns, driven by tech titans as well as financiers and real estate investors, is pushing up home prices in the Hollywood Hills.

“Today, tech entrepreneurs will pay over $20 million for a property because they not only have that money, but they are making money on top of that,” said Zach Goldsmith, an agent with Hilton & Hyland and Christie’s International Real Estate, which are affiliated. [More]