Gesh Group Seeks $24M for Brentwood Spec Manse

For anyone who wants to be neighbors with LeBron James or Tom Hanks, now’s the chance.

A speculative mansion on Brentwood’s Tigertail Road has hit the market for nearly $24 million, or $2,263 per square foot, placing a prospective buyer near several celebrities that also include Steven Spielberg and Travis Scott.

Beverly Hills luxury residential developer Gesh Group, along with David Glosman, partnered to build the home.

They tapped Carolwood Estates’ David Parnes, Zac Mostame and Christina Collins as the listing agents.

694 North Tigertail Road in Brentwood (Carolwood Estates, Gesh Group)

The development partners purchased the property in 2022 for $5.2 million, or $490 per square foot, and built a residence with features such as limestone flooring, custom oak panels, a wine room, theater, wellness suite and pool. It counts six beds and eight baths across 10,604 square feet.

Aside from a gaggle of celebrity neighbors, the home is also about a half a mile away from Brentwood’s priciest home on the market, which is “Buying Beverly Hills” star Santiago Arana’s $65 million speculative mansion at 401 North Tigertail. The nine-bedroom, 14-bathroom residence’s asking price translates to $3,250 per square foot. The home hit the market in January after The Agency principal spent four years constructing the property in partnership with David Herskowitz.

The property, if sold, would be subject to the city of Los Angeles’s Measure United to House L.A. tax. The so-called mansion tax, which went into effect in 2023 and applies to all city of Los Angeles commercial and residential deals, adds a 4 percent tax on trades of at least $5.3 million and bumps up to 5.5 percent on sales of $10.6 million or more.

Measure ULA has made it more challenging for Gesh Group to get deals to work out to $2,000 per square foot which the company sees as its sweet spot on exits.

Gesh Group’s Oren Levy called ULA a “big deal killer” that eats into anywhere from one-quarter to one-third of profits. The tax has since pushed the developer to explore other markets outside of the city of Los Angeles. This includes Rancho Mirage, where it bought three properties and the gated community of Royal Oaks in Encino. It’s also looking at Beverly Hills and West Hollywood.

“We haven’t abandoned the [L.A.] market,” Levy said. “I think it’s still a viable market. It just takes a lot more underwriting and making sure you check every box.”

Where Gesh Group may have purchased three to five properties annually, that’s now been whittled down to one or two in response to Measure ULA and rising construction costs.

“I think the days of developers hitting a home run on a property have passed,” Levy said. “You can still do extremely well, but you’ve got to really sharpen your pencil and be prepared to make less. That’s why it comes down to speed because you don’t want those carrying costs to hurt you.”