Elon Musk turns to Morgan Stanley to finance 5 California mansions

The bank provided $61M loans for the homes, including 4 in Bel Air

Los Angeles /
Feb.February 22, 2019 09:00 AM
Elon Musk and one of his Bel Air homes (Credit: Getty Images and Redfin)

Billionaire futurist Elon Musk has taken out $61 million in mortgages on five California mansions.

Morgan Stanley provided the debt on the properties, which amount to $180,000 in monthly payments for Musk, according to Bloomberg.

The Tesla, Boring Company, and SpaceX founder took out loans on four of his homes in Bel Air, and one in the San Francisco Bay area city of Hillsborough, Bloomberg reported.

All of the loans represent new debt except one. That one is a refinance on the first Bel Air home Musk bought in 2012, a 1.7-acre estate above the Bel Air Country Club. Musk acquired another home next door in 2013, but turned it into a private school for his children and their friends.

Such large mortgages are rare in the world of private home lending, but Musk isn’t alone among wealthy homeowners who prefer debt to cash. His neighbors in Bel Air, power couple Jay-Z and Beyoncé, took out a $52.8 million loan on a sprawling 30,000-square-foot spec mansion in the area in 2017.

In 2015, Musk added two more Bel Air properties to his portfolio. Two years later he dropped $24.3 million for an unfinished spec home in the exclusive neighborhood. But that wasn’t enough. A few weeks ago, he bought another home for $6.4 million.

In total, there were 230 mortgages of $10 million to $20 million last year. Around three quarters of those were taken out in the last five years, Bloomberg reported. [Bloomberg]Dennis Lynch 


Related Articles

arrow_forward_ios
Kelly Clarkson and the Encino property (Getty, Compass)
Grammy winner Kelly Clarkson sells 10K sf Encino mansion
Grammy winner Kelly Clarkson sells 10K sf Encino mansion
Rihanna asks $7.8M for Hollywood Hills property after buying in Beverly Hills
Rihanna lists Hollywood Hills property after buying in Beverly Hills
Rihanna lists Hollywood Hills property after buying in Beverly Hills
LeBron and the six bedroom house (Getty, Redfin)
LeBron sells Brentwood mansion for $1M less than he paid
LeBron sells Brentwood mansion for $1M less than he paid
Kanye West and 24844 Malibu Road (Getty, Compass/Facebook)
Album drop then price chop: Kanye pays $57M for Malibu beach house
Album drop then price chop: Kanye pays $57M for Malibu beach house
Luciana Barroso and Matt Damon with the seven bedroom house (The Agency Real Estate, Getty)
Matt Damon Finds Buyer for Pacific Palisades home after chopping price, moving to NYC
Matt Damon Finds Buyer for Pacific Palisades home after chopping price, moving to NYC
Mossimo Giannulli and Lori Loughlin with The Madison Club where their house is located (The Madison Club, Getty)
Lori Loughlin and Mossimo Giannulli buy $13M La Quinta home after jail stints
Lori Loughlin and Mossimo Giannulli buy $13M La Quinta home after jail stints
Nicolas Berggruen and the Hearst Estate (Hilton & Hyland, Getty)
Sold: Billionaire pays $63M at auction for Hearst estate
Sold: Billionaire pays $63M at auction for Hearst estate
Carl Reiner with the neighboring properties (Getty, Google Maps)
Carl Reiner’s neighboring Beverly Hills Flats homes sell for $16.8M
Carl Reiner’s neighboring Beverly Hills Flats homes sell for $16.8M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...