As part of the deal, luxury homebuyers can now obtain an art collection.

As part of the deal, luxury homebuyers can now obtain an art collection.
As part of the deal, luxury homebuyers can now obtain an art collection.
  • Paul Lester, a Los Angeles realtor, has made it his mission to provide "significant" artwork for purchase in the upscale homes he sells.
  • Artelier, a British art consultancy, selects artists to create artwork that complements the size and style of homes for sale, with pieces that reflect the local area.
  • The artwork in projects like The Houses, an Olson Kundig-designed development in Beverly Hills, can be utilized as a marketing tool during the sales process, as stated by Lester.

Paul Lester, upon joining a luxury real estate agency in Los Angeles, organized a Beverly Hills property viewing with a twist: he transformed it into an art opening, inviting potential buyers of the home as well as those interested in purchasing the artwork displayed within it.

The house and its artworks were sold for a premium, according to Lester, who spoke to CNBC by phone.

Over a decade ago, Lester began showcasing contemporary art in addition to designer furniture in his listings of high-end properties for sale.

The Agency's partner, Lester, is currently selling new-build luxury homes in Beverly Hills designed by Olson Kundig and has a collection of art in a few of them.

The Houses at 8899 Beverly, which are known as homes, start at around $5 million. Unlike "staging" pieces brought in temporarily, the art and furniture is also available for purchase, Lester said. The Agency collaborated with Creative Art Partners on the homes, which feature work by various artists, including Michelle Mary Lee, an arts educator, and Irvin Pascal, a British sculptor and painter.

Turnkey properties are increasingly popular among buyers who want a complete package that works well, according to Lester. Many people are opting for new construction, and when they walk into a property, they often ask if they can take the furniture and art as well. Lester said that in such cases, they are able to say yes.

David Knowles, founder of art consultancy Artelier, which provides art for real estate projects in the U.K., U.S. and the Middle East, stated that selecting artwork for such properties requires ensuring it complements their interiors.

If what is being sold is a turnkey project, it can be challenging to convey uniqueness and character through the art, as it must appeal to a broad audience, according to Knowles, who stated this during a phone interview with CNBC. He emphasized that the art must feel like it belongs in the space.

Commissioning custom artwork that fits the dimensions of a space and is connected to the area is more effective than temporarily borrowing pieces from a gallery, according to Knowles.

Lester's team debates whether the artwork should complement or contrast with a home's design. They may opt for a vibrant color scheme for a more monochrome property or a combination of abstract and portrait pieces, as Lester suggests. Sometimes, artwork is commissioned for properties, while other times, Lester may ask artists if they have pieces available in a specific color.

Some of the world's most esteemed properties, including London's One Hyde Park, the residences at the Dorchester's One at Palm development in Dubai, and an apartment within Eighty Seven Park, an oval-shaped Miami beachfront building designed by Renzo Piano, have sourced artwork from Artelier to adorn their walls.

London developers are eager to attract international buyers seeking vacation homes in the city, according to Knowles. The consultancy specializes in sourcing artwork for affluent property buyers who possess excellent taste and have a clear vision of what they want. Knowles added that these buyers often have someone working for them who has a keen eye for design.

Artelier acts as a mediator between artists, developers, and property buyers, who come from different worlds. Knowles emphasizes that artists need to understand that their work is considered a luxury product and that clients expect exceptional quality. Meanwhile, Artelier educates clients about the imperfections that come with bespoke ceramic pieces, such as fingerprints.

Lester sees the artwork in The Houses at 8899 Beverly as an additional chance for marketing. He believes that highlighting the artists he's found to be effective will also provide an opportunity to tell the story about the home.

Lester has several properties that are comparatively more affordable than the others he has on his books. He has a house that might be worth $60 million to $70 million, but the artwork in the house is probably worth $200 million. Buyers at that level might inquire whether the vendor would consider selling one or two of the artworks, Lester said.

Richard Gutteridge, co-head of prime central London at real estate agency Savills, advises clients to leave artwork on the walls during viewings, even though the company doesn't typically sell art as part of a property deal.

The accessory is widely recognized and associated with many people. According to Gutteridge, who manages sales in the "golden postcode" area of Belgravia, Chelsea, Knightsbridge, and Mayfair, a home's art collection can sometimes be worth as much as the property itself.

Gutteridge said that while it aids the sales process, it is also pleasant when buyers shift their focus to the house. The artwork frequently captures people's attention.

by Lucy Handley

Investing