The Prosperity Report - Vol 2

THE PROSPERITY REPORT INSIGHT INTO LUXURY’S AC C E L E R AT I N G M A R K E T S

F U R N I T U R E

THE WAIT I VistaJet introduces the world’s first fleet of Global 7500 business jets, flying faster and farther than ever before. The Global 7500 offers the largest cabin in private aviation with four true living spaces, including a business centre, a full size kitchen and a permanent bedroom. Every journey is tailored to ensure seamless travel in elegant interiors incorporating in-flight offices and a home away from home environment.

VistaJet and its subsidiaries are not U.S. direct carriers. VistaJet US Inc. and VistaJet Online and Mobile Services are air charter brokers that do not operate aircraft. VistaJet Limited is a European air carrier that operates 9H registered aircraft under its Maltese Air Operator Certificate No. MT-17 and is incorporated

IS OVER +1 (833) 853 8872 vistajet.com/global-7500 in Malta under Company Number C 55231. VistaJet-owned and U.S. registered aircraft are operated by properly licensed U.S. air carriers, including XOJET Aviation LLC.

THE NEW STANDARD IN TEQUILA.

Visit Cincoro.com to taste Cincoro today.

Sip, Savor and Share Cincoro Tequila Responsibly. Cincoro Tequila ©2021, 40% Alc./Vol. Imported by Cinco Spirits Group LLC, Miami, FL

A MOMENT MADE TIMELESS discover an experience just as rare as the diamonds you seek.

FLORIDA

NEW YORK

CONNECTICUT

561-232-2082

917-470-9098

917-470-9098

WWW.FABRIKANT.COM

N E W YO R K

SOUTH FLORIDA

HAMPTONS

D AV I D S C O T T I N T E R I O R S . C O M

|

212-829-0703

|

@ D AV I D S C O T T I N T E R I O R S

A PLACE UNLIKE ANY OTHER One of the most beautiful, undisturbed places in the world, Jumby Bay Island is a private island of white-powdered beaches, lapped by turquoise seas. Reachable only by boat, there’s not a car in sight, only lush trails and winding cycle paths.

Kick off your shoes and relax in the Caribbean’s finest hideaway resort.

w w w.oetkercol lec tion.com/hotels/jumby-bay-island

FOUNDERS' NOTE

Since the founding of Bespoke, we have found success in refining unique, customized experiences for the members of our community, constantly challenging the status quo with continuous innovation.

In that spirit, we are excited to bring to you Bespoke Luxury Magazine: The Prosperity Report, where we delve into the meaningful insight behind those industries which inspire our niche community’s work and lifestyle.

Zachary Vichinsky / Cody Vichinsky / Michael Cantwell

®

A TRUE LUXURY HOME COMES WITH ITS OWN ISLAND

FISHER ISLAND WELCOMES PALAZZO DELLA LUNA

50 NEW WATERFRONT CONDOMINIUM RESIDENCES ON CELEBRATED FISHER ISLAND. A HAVEN OF PRIVACY AND EXCLUSIVITY, MINUTES FROM SOUTH BEACH AND THE CULTURAL ATTRACTIONS OF MIAMI, WITH SUPERBLY CURATED BUILDING AMENITIES AND 6-STAR WHITE GLOVE SERVICES. INTERIORS BY CHAMPALIMAUD DESIGN. 3- TO 7- BEDROOM RESIDENCES FROM $6.5 TO $20 MILLION. PENTHOUSES WITH PRIVATE ROOFTOP TERRACES FROM $26.5 TO $40 MILLION. MOVE-IN READY. +1.305.535.6071 | INFO @ PALAZZODELLALUNA.COM | PALAZZODELLALUNA.COM

BEACH | MARINA | TENNIS | GOLF | RESTAURANTS & BEACH CLUB | SPA & FITNESS CENTER BOUTIQUE HOTEL | DAY SCHOOL | COUNTRY MARKET | FERRY SERVICE TO & FROM THE MAINLAND

ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. All artist’s or architectural renderings, sketches, graphic materials and photos depicted or otherwise described herein are proposed and conceptual only, and are based upon preliminary development plans, which are subject to change. This is not an offering in any state in which registration is required but in which registration requirements have not yet been met. This advertisement is not an offering. It is a solicitation of interest in the advertised property. No offering of the advertised units can be made and no deposits can be accepted, or reservations, binding or non-binding, can be made in New York until an offering plan is filed with the New York State Department of Law.

®

26

EXECUTIVE SUMMARY

28

T HE PROSPERITY MARKET

62

DIAMOND DEMAND

82

DRIVING A NEW COURSE

104

TA K I N G O F F P R I VAT E

126

IN THE FAST LANE

152

C U R AT I N G A N E W L E G AC Y

T H E S Y M B O L T H AT REDEFINED AN INDUSTRY

Bespoke’s mission is to perpetually elevate industry standards by innovating new ways to bring value to our clients.

@BESPOKE.MAGAZINE BESPOKELUXURYMAGAZINE.COM

TA B L E O F C O N T E N T S

OCTAVE SEATING SYSTEM— VINCENT VAN DUYSEN

ONLINE STORE

SHOP NOW AT SHOP.MOLTENI.IT

#MolteniGroup

MOLTENI&C | DADA FLAGSHIP STORES 160 MADISON AVE, NEW YORK NY 10016, T 212 673 7106 — BOSTON CHICAGO DALLAS LOS ANGELES MIAMI TORONTO MEXICO CITY

MASTHEAD

FOUNDERS CODY VICHINSKY ZACHARY VICHINSKY

C O - F O U N D E R & C H I E F C R E AT I V E O F F I C E R

EDITOR-IN-CHIEF

C H I E F C U R ATO R

AYA A B I T B U L

DANNIELLE BIALSKY

DESIGN NICOLE EBEL DANIELLE MARGOLIS

B U S I N E S S D E V E LO P M E N T & S T R AT E GY EMEL DILEK

PRINT PRODUCTION MANAGEMENT D I G I TA L W O R K F LO W S O L U T I O N S PRINTED BY KIRKWOOD

PHOTOGRAPHY

S I M O N B E R LY N

SANDRO KOSTER

JC BUCK

STEPHAN BAUER

E VA N S C H I L L E R

M A T H I E U H E U R T A U LT

LARRY LAMBRECHT

BRIAN HENNIKER

JEFFREY BERTCH

MIKE MAEZ

© 2021 Bespoke Enterprises, LLC. Bespoke disclaims any and all warranties, express or implied, including, but not limited to, warranties as to the reliability, accuracy or currency of any information, images, data and/or other content herein.

C R E AT I V E P O W E R E D BY B E S P O K E LU X U R Y M A R K E T I N G . C O M

MICHAEL CANTWELL

Apollo Yachts was founded by an elite group of yachting and private aviation experts with a shared vision – to transform the luxury yacht industry by focusing on the unique needs of each client and delivering life changing experiences. Combining 60+ years in the luxury yachting market with the success, resources and driving force of our parent company Apollo Jets has afforded us the unique opportunity to deliver an unparalleled experience that simply cannot be replicated by the competition. From Sales and Acquisition of Luxury Yachts to international Yacht Charter and comprehensive Yacht management we believe every interaction with Apollo should represent a complete concierge experience synonymous with the investment of discussion.

A J@APOLLOYACHTS .COM 786-223-8910

NEW YORK

+

BOSTON

+

MIAMI

+

NAPLES

EXECUTIVE SUMMARY

As we set our sights towards a summer of long-awaited gatherings and springing markets, it feels the world is shaping into a likeness we once knew.

Under the surface it is different, though, because after a year of challenge, necessity is the mother of invention, and invention the mother of change. The events of the last year indeed sparked profound change in major industries, particularly ultra-luxury ones, inevitably shaping the future of global business.

As purveyors of acute insight into the world of ultra-luxury, we at Bespoke aim to capture that future with this special edition magazine, The Prosperity Report, a data-driven dive into the major influences on today’s business of luxury.

Compiling insight and perspectives from trailblazers in real estate, diamonds, golf, collector cars, private aviation, and fine art, The Prosperity Report highlights what shape each market will take in the coming years, and what catalysts, amid Covid-19, helped sculpt that future. We trace how these key markets reacted, pivoted, and grew in the face of challenge, and what innovations and abundance we can expect for the future.

Erwan Rambourg, author of best seller Future Luxe, told us so poignantly: “People will be buying less, but buying better, more iconic investments.

Ultimately, luxury reflects the cultural zeitgeist of the moment.” At Bespoke Luxury Magazine, we ardently tap into and make meaning of that zeitgeist, and are honored to take part in exploring it with our greater community.

Join us.

®

VOICES

ERWAN RAMBOURG

LUXURY EXPERT & AUTHOR OF FUTURE LUXE

REES JONES

F O U N D E R & P R E S I D E N T, REES JONES, INC.

JAY K A R E N ZACHARY VICHINSKY CEO & FOUNDING PA R T N E R , B E S P O K E

C E O , N AT I O N A L G O L F C O U R S E O W N E R S A S S O C I AT I O N

DAVID PILLSBURY CODY VICHINSKY

CEO, CLUBCORP

PRESIDENT & FOUNDING PA R T N E R , B E S P O K E

ANDRE KIKOSKI

F O U N D I N G P R I N C I PA L , A N D R E K I KO S K I A R C H I T E C T

ANDREW SHEINMAN

P R E S I D E N T, P E M B R O O K E & I V E S

M AT T E O AT T I

E V P O F M A R K E T I N G & I N N O VAT I O N , V I S TA J E T

ALEXIS FECTEAU

GLOBAL DIRECTOR OF MARKETING, BOEING BUSINESS JETS

EDMUND HOLLANDER

P R E S I D E N T, H O L L A N D E R D E S I G N LANDSCAPE ARCHITECTS

JOHN KRAMAN

CAROLINE SCHEUFELE

DAVID GOODING

R AY M O N D S A N C R O F T- B A K E R

SANDRA BUTTON

CO-PRESIDENT & ARTISTIC D I R E C T O R , C H O PA R D

J E W E L R Y C O N S U LT A N T, THE FINE ART GROUP

ROBERT CORNFIELD & JOSHUA ALLEN P R I N C I PA L S , F A B R I K A N T

MARC HRUSCHKA

PRESIDENT & CEO, GRAFF USA

D I R E C T O R O F C O M PA N Y R E L AT I O N S , MECUM AUCTIONS

F O U N D E R & P R E S I D E N T, G O O D I N G & C O M PA N Y

CHAIRMAN, PEBBLE BEACH CONCOURS D’ELEGANCE

DUSTYN KIM

CHIEF REVENUE OFFICER, ARTSY

M A R I YA G O L O V I N A

DIRECTOR OF ACQUISITIONS, MASTERWORKS

PAU L Z I M N I S K Y

P R I N C I PA L , PA U L Z I M N I S K Y D I A M O N D A N A LY T I C S

SIMON DE PURY

A R T A U C T I O N E E R , D E A L E R & C U R AT O R

THE PROSPERITY MARKET

INSIGHT INTO THE U LT R A - L U X U R Y M A R K E T O F R E A L E S TAT E

BESPOKE LUXURY MAGAZINE

With new migrations and lifestyles, the national real estate market is more dynamic than ever.

28

THE PROSPERITY REPORT | VOL 2

115 Beach Lane, Wainscott, NY.

Oceanfront | 2.55 Acres | 11,000 SF+/BespokeRealEstate.com – $49,500,000

29

The Bristol, Palm Beach, FL.

BESPOKE LUXURY MAGAZINE

Waterfront | 10,350 SF+/7 Beds | 9F/2H Baths BespokeRealEstate.com $29,450,000

30

U N I T E D S T A T E S U LT R A - L U X U R Y R E A L E S T A T E

NATIONAL MARKET REPORT “The Hamptons doesn’t have a season anymore, and I don’t believe that will change any time soon,” says Cody Vichinsky, President and Founding Partner of Bespoke.

“We are seeing secondary home upgrades, full time residents, and new purchases at higher rates than ever. Coming off an already successful Q4 of 2019, Covid really compounded the success of the market. It’s all really fluid.” Still, he maintains: “New York City is not over.”

This bullish climate was largely led by vacation or secondary-home markets like the Hamptons, South Florida, and Colorado, each breaking records for total sales volume and quantity. However, new residents in those markets meant lost trades for more urban markets, particularly New York City, which saw a sharp 58% decline in ultra-luxury sales.

“The same is true for Florida,” says Zachary Vichinsky, the CEO and Founding Partner of Bespoke. Having moved to service the influx of new $10 million+ property buyers there, he believes that “recent events have shown us that a life outside of buzzing urban areas is viable.” The demand for full time residence in South Florida, he says, is due to the region being both a climate and tax haven.

This reversal signals the most glaring trend of 2020: facing quarantine and lockdowns, many New York City residents flocked to areas with more open space and warm weather, ideal for outdoor and socially distant, safe activities. Rather than upgrading their primary residence in the city or its immediate surroundings, many chose to purchase a secondary home in the Hamptons or Florida, some even declaring it their primary residence, attracted by open space, and in the case of Florida, more favorable tax rates and warmer weather year-round.

THE PROSPERITY REPORT | VOL 2

In 2020, the U.S.’s overall ultra-luxury real estate market soared, despite discrepancies for individual markets. Between record-low interest rates and Covid-19, many people either purchased new secondary homes, outfitted vacation-homes to accommodate year-round living, or in many cases, fully relocated. This shifting resulted in unprecedented rates of moving, investing, and ultimately, an overall prosperous U.S. real estate market.

As we cover each ultra-luxury market in the following pages, we benchmark different cities based on population, demand, and inventory, with starting prices ranging from $7 million to $10 million.

Join us as we break down the top ultra-luxury markets in the country, top trades, and top trends.

®

31

I N S I G H T I N T O T H E U LT R A - L U X U R Y R E A L E S T A T E M A R K E T

HAMPTONS MARKET REPORT

BESPOKE LUXURY MAGAZINE

151

TOTA L $ 1 0 M + S A L E S 2019 - 2020

58 SALES IN 2019

As a primary locale for vacation homes, the Hamptons market has seen unprecedented trade volume in 2020, and is continuing to thrive in 2021.

32

93 SALES IN 2020 ↑60.3%

Even before 2020, property sales volume in the Hamptons had been steadily on the rise, due to low interest rates and a generally improved economy.

By the fourth quarter of 2019, that slow rise culminated in the highest quarterly trade volume in nearly a decade. An already

improved market, coupled with a rush of individuals looking for a permanent residence outside of New York City in 2020, resulted in a 60.3% sales quantity increase, and an 83.3% sales volume increase.

2 0 2 0 $ 1 0 M + TOTA L S A L E S BY LO C AT I O N

The data shown below includes the top 6 performing locations of the 11 total locations surveyed within the Hamptons $10M+ real estate market in 2020.

11

EAST HAMPTON

SAGAPONACK

+8 SALES FROM 2019

NO CHANGE FROM 2019

27

12

SOUTHAMPTON

BRIDGEHAMPTON

+14 SALES FROM 2019

+2 SALES FROM 2019

6

6

WAT E R M I L L

WAINSCOTT

+2 SALES FROM 2019

+4 SALES FROM 2019

THE PROSPERITY REPORT | VOL 2

17

33

BESPOKE LUXURY MAGAZINE

The number of turnkey property trades more than doubled between 2019 and 2020, growing 147%.

34

This is best reflected in the sharp surge of turnkey Hamptons properties sold in 2020. From 2015 to 2019, newly renovated properties made up an average of 27% of all trades, performing at nearly the same rates as new construction trades and at about half the

number of land or teardown properties. Yet in 2020, turnkey properties constituted 51% of all trades, double that of both new construction and land/teardowns the previous year. This marked a 147% jump from 2019, from 19 trades to 47.

THE PROSPERITY REPORT | VOL 2

Burnt Point, Wainscott, NY.

Waterfront | 25 Acres | 25,000 SF+/#1 Hamptons Waterfront Sale Sold by BespokeRealEstate.com Q1 2021 LP – $56,000,000

Jule Pond, Water Mill, NY.

Oceanfront | 42 Acres | 20,000 SF+/#1 Hamptons Single Property Sale Sold by BespokeRealEstate.com Q1 2021 LP – $145,000,000

“This shift is because the majority of turnkey properties sold in 2020 fell in the $10 to $20 million range, lower hanging fruit when put into context of the whole ultra-luxury Hamptons market,” explains Joe DeSane, Managing Director of Bespoke in the Hamptons. Trades in Q1 2021 indicate a return to the vintage distribution before 2020, with 7 turnkey sales and 6 land and teardown sales.

Interestingly, while the $20 to $40 million range homes across all types performed the same as years prior, there was a 300% surge in trades in the $40 million+ range, from 3 trades in 2019 to 9 in 2020. As owners of several legacy and iconic properties anticipated the market’s falling interest rates and recognized a growing list of captivated buyers, 2020 proved itself an optimal year to sell.

35

I N S I G H T I N T O T H E U LT R A - L U X U R Y R E A L E S T A T E M A R K E T

NEW YORK CITY MARKET REPORT

BESPOKE LUXURY MAGAZINE

398

TOTA L $ 1 0 M + S A L E S 2019 - 2020

261 SALES IN 2019

Manhattan $10M+ trades declined 47.5% in 2020 compared to 2019, an inverse of the Hamptons market.

36

137 SALES IN 2020 ↓ 4 7. 5 %

Manhattan was one of the only ultra-luxury markets in the country that dropped in 2020, by 47.5% in sales quantity, 53.6% in sales volume, and 11.1% in average sale price, across all neighborhoods, locations, and nearly all price segments. The sudden ubiquity

of remote work and the increasing desire for outdoor, socially-distant activities are the primary causes for the rapid relocation of the ultra-high-networth community to secondary vacation markets, including the Hamptons, South Florida, Connecticut, and Colorado.

2 0 2 0 $ 1 0 M + TOTA L S A L E S BY LO C AT I O N

The data shown below includes all locations surveyed within the Manhattan $10M+ real estate market in 2020.

26

DOWNTOWN EAST

MIDTOWN WEST

-7 SALES FROM 2019

-26 SALES FROM 2019

52

28

DOWNTOWN WEST

UPPER EAST SIDE

-28 SALES FROM 2019

-36 SALES FROM 2019

9

12

MIDTOWN EAST

UPPER WEST SIDE

-10 SALES FROM 2019

-17 SALES FROM 2019

THE PROSPERITY REPORT | VOL 2

10

37

BESPOKE LUXURY MAGAZINE

Midtown West had double the average sales price of other neighborhoods at $34.2M, a direct effect of increasing development.

The ten most expensive 2020 trades in Manhattan all occurred in the same building on Park Avenue South, between $53.6 and $99 million, each to anonymous buyers. While all ten units went into contract before 2020—some as early as 2015—the fact that the trades were finalized, if not expedited, in 2020 is notable.

Of the remaining $10 million+ trades in Manhattan, the majority occurred in

38

THE PROSPERITY REPORT | VOL 2

24 Leonard Street PH, Tribeca, NY.

Custom Triplex Penthouse | 7,261 SF+/BespokeRealEstate.com – $35,950,000

Downtown West, which had the lowest average sales price, indicating that the majority of trades occurred in the $10 to $15 million range.

Despite having the lowest sales quantity, Midtown West was the area which held the highest average sale price—about double that of all other neighborhoods— in 2019 and 2020 trades. Kristen Lukic, New York City Portfolio Manager at Bespoke, explains, “this is a direct

effect of increasing development and revitalization of residential property in the neighborhood, first initiated by the opening of Hudson Yards in March 2019.” She continues, “the city is definitely not dead. I believe in regeneration, and we’re starting to see signs of an upturned demand in NYC markets for the coming year.”

39

I N S I G H T I N T O T H E U LT R A - L U X U R Y R E A L E S T A T E M A R K E T

CALIFORNIA MARKET REPORT

BESPOKE LUXURY MAGAZINE

387

TOTA L $ 1 0 M + S A L E S 2019 - 2020

110 SALES IN 2019

In California, nearly half of all $10M+ trades in 2020 were concentrated in one county: Los Angeles.

277 SALES IN 2020 ↑151.8%

In 2020, California proved itself as the market with the most growth for $10 million+ properties in the United States, with a 151% sales quantity increase, from 110 in 2019 to 277 in 2020.

Even before the pandemic, the number of prospective buyers

40

in California outnumbered the number of properties available.

With the rush of people out of New York City who worked equally between the city and Los Angeles, many found hardly a better time to permanently shift to L.A.—with better weather and more space than New York—than in the last year.

2 0 2 0 $ 1 0 M + TOTA L S A L E S BY LO C AT I O N

The data shown below includes the top 6 performing locations of the 8 total locations surveyed within the California $10M+ real estate market in 2020.

9

S A N M AT E O C O U N T Y

S A N TA C L A R A C O U N T Y

+42 SALES FROM 2019

+8 SALES FROM 2019

126

54

LOS ANGELES COUNTY

ORANGE COUNTY

+73 SALES FROM 2019

+15 SALES FROM 2019

25

8

SAN DIEGO COUNTY

SAN FRANCISCO COUNTY

+20 SALES FROM 2019

+8 SALES FROM 2019

THE PROSPERITY REPORT | VOL 2

45

41

BESPOKE LUXURY MAGAZINE

The number of San Mateo County $10M+ sales grew by 1400% between 2019 and 2020.

Overall, the biggest determining factors for price came down to acreage, house size, and the year the house was built, highly favoring key locations like Beverly Hills and Malibu.

A significant majority of the 2020 $10 million+ sales occurred in Los Angeles County, namely Beverly Hills, Malibu, and the city of Los Angeles. The top sale in 2020 was the Jack Warner Estate for $165 million.

42

Bel Air Home Designed by Paul McClean, McClean Design.

Courtesy Simon Berlyn

THE PROSPERITY REPORT | VOL 2

Los Angeles County is followed by Orange County’s Newport Beach, Laguna Beach, and Corona Del Mar, which collectively made 54 trades with a $15.3 million average price, and San Mateo County, with 45 trades at a $16.3 million average price.

Notably, the counties with the greatest growth were San Mateo and San Diego.

In 2019, San Mateo had 3 $10 million+ sales; its 45 2020 sales indicated a

1400% increase. San Mateo is in the heart of Silicon Valley and includes San Francisco, which historically had prices per square foot on par with New York City. Unlike New York City, however, San Mateo is spacious and has a mild climate, which, combined with low interest rates, spelled opportunity for ultra-luxury buyers.

43

I N S I G H T I N T O T H E U LT R A - L U X U R Y R E A L E S T A T E M A R K E T

FLORIDA MARKET REPORT

BESPOKE LUXURY MAGAZINE

279

TOTA L $ 1 0 M + S A L E S 2019 - 2020

82 SALES IN 2019

In 2020, Palm Beach County had 82 $10M+ trades, the same number as the entire state of Florida in 2019.

44

197 SALES IN 2020 ↑140.2%

Like other secondary markets, Florida’s staggering increase in sales quantity reflects a major migration to the region, one offering better climate and more space. The entire state of Florida made a total of 279 sales above $10 million in a two-year period, with 82 in 2019 and 197 in 2020. Every county in Florida

with ultra-luxury inventory saw an increase in sales, except Indian River County, which had one sale each year.

The counties leading in yearover-year sales quantity growth were Palm Beach at 164% and Miami-Dade at 125%.

2 0 2 0 $ 1 0 M + TOTA L S A L E S BY LO C AT I O N

The data shown below includes the top 6 performing locations of the 7 total locations surveyed within the Florida $10M+ real estate market in 2020.

5

MIAMI-DADE COUNTY

S A R A S OTA C O U N T Y

+45 SALES FROM 2019

+3 SALES FROM 2019

82

7

PA L M B E A C H C O U N T Y

W A LT O N C O U N T Y

+51 SALES FROM 2019

+7 SALES FROM 2019

12

5

BROWARD COUNTY

MARTIN COUNTY

+5 SALES FROM 2019

+5 SALES FROM 2019

THE PROSPERITY REPORT | VOL 2

81

45

BESPOKE LUXURY MAGAZINE

Between 2019 and 2020, the number of $10M+ sales grew by 164% in Palm Beach and 125% in Miami.

46

It is notable that before 2018, MiamiDade County dominated the ultra-luxury market, yet in the last three years that sensation has shifted to Palm Beach.

Bucking its reputation as a place for an older demographic, younger people are steadily moving there, both last year and this year. This is a main contributor to the recent increase in $10 million+ trades, and enabled Palm Beach to take first place in sales volume and average sales price over Miami-Dade County.

Echo Brickell – Apex Penthouse, Miami, FL. 10,100 SF+/- | 5 Beds | 7F/1H Baths BespokeRealEstate.com – $45,000,000

THE PROSPERITY REPORT | VOL 2

This increase also meant that in 2020, Palm Beach County, with 82 $10 million+ trades, had the same number as the entire state of Florida in 2019. “The key cities in Palm Beach County and Miami-Dade possess beaches that are alluring to visitors and prospective home buyers, and subsequently did well during the pandemic,” says Harlan Goldberg, Managing Director of Bespoke’s operations in South Florida.

Before the pandemic, the majority of those who moved from New York City and its surrounding areas to South Florida were either retired or among the few able to work remotely. However, Florida’s milder year-round weather and the convenience of being near a major city, have made the region attractive to young families. What’s more, increasingly favorable tax rates have made the region particularly attractive to ultra-capable buyers looking for a permanent yearround residence.

47

I N S I G H T I N T O T H E U LT R A - L U X U R Y R E A L E S T A T E M A R K E T

COLORADO MARKET REPORT

BESPOKE LUXURY MAGAZINE

324

TOTA L $ 7 M + S A L E S 2019 - 2020

101 SALES IN 2019

72% of all $7M+ trades occurred in Pitkin County, home to Aspen.

48

223 SALES IN 2020 ↑ 1 2 0 .7 %

Like many secondary vacation markets, Colorado sales saw an incredible 120% increase of $7 million+ trades between 2019 and 2020. Though Colorado had been predominantly a winter sports destination for West Coast residents, even before the pandemic, Aspen,

Denver, and Vail have become increasingly popular as a yearround vacation destination for East Coasters and West Coasters alike. As such, 160 of the 223 total sales in 2020 occurred in Pitkin County, home to Aspen, culminating in just over $2 billion in residential sales.

2 0 2 0 $ 7 M + TOTA L S A L E S BY LO C AT I O N

The data shown below includes the top 6 performing locations of the 8 total locations surveyed within the Colorado $7M+ real estate market in 2020.

8

EAGLE COUNTY

SAN MIGUEL COUNTY

+4 SALES FROM 2019

+4 SALES FROM 2019

160

3

PITKIN COUNTY

ROUTT COUNTY

+115 SALES FROM 2019

+1 SALE FROM 2019

4

3

BOULDER COUNTY

A R A PA H O E C O U N T Y

NO CHANGE FROM 2019

-2 SALES FROM 2019

THE PROSPERITY REPORT | VOL 2

38

49

BESPOKE LUXURY MAGAZINE

Home in Aspen Designed by Pembrooke & Ives.

Courtesy JC Buck

Between 2019 and 2020, the number of $10M+ sales grew by 255% in Pitkin County.

Similarly, 38 transactions occurred in Eagle County, home to Vail, resulting in $439 million total sales volume.

Pitkin also earned the spot for the highest average sales price in the $7 million+ range compared to all other Colorado counties, at $13.3 million, and for the greatest growth, at 255%.

It is notable that unlike other secondary markets like South Florida and the

50

THE PROSPERITY REPORT | VOL 2

Hamptons, which experienced the largest sales transactions during peak summer seasons of Q2 and Q3, most of the uptick in sales in Colorado occurred towards Q3 and Q4, during its peak winter skiing months, where people could safely be outside and use their own gear.

Colorado’s hilltops and mountains also makes each home incredibly private and spaced out, ideal for social distancing.

With record-high coronavirus cases in California in November and December,

and the state’s subsequent strict lockdowns, many opted to purchase a home toward the end of the year.

Additionally, many people who may have had a passing interest in Colorado found last year an ideal opportunity to purchase a luxury home above the value of a typical luxury estate, as Colorado often offers more square footage, upgrades, and amenities per dollar compared to other luxury markets.

51

I N S I G H T I N T O T H E U LT R A - L U X U R Y R E A L E S T A T E M A R K E T

CONNECTICUT MARKET REPORT

BESPOKE LUXURY MAGAZINE

71

TOTA L $ 7 M + S A L E S 2019 - 2020

28 SALES IN 2019

The greatest trade in Connecticut was in Greenwich, at 110 Field Point Circle, for $48M.

52

43 SALES IN 2020 ↑ 5 3 . 6 %

Connecticut appears to be one of the pandemic’s most prominent beneficiaries, as its already stable real estate market thrived even more, with a 53.6% increase in the quantity of $7 million+ sales in 2020, compared to 2019.

Fairfield County, which includes Greenwich, was responsible

for 95% of all $7 million+ real estate transactions in Connecticut in 2019 and 2020 combined, taking 41 of the 43 total sales, with the other two in Litchfield County. This culminated in a $475,437,000 total sales volume for Fairfield County alone.

2 0 2 0 $ 7 M + TOTA L S A L E S BY LO C AT I O N

The data shown below includes all locations surveyed within the Connecticut $7M+ real estate market in 2020.

41

FAIRFIELD COUNTY

THE PROSPERITY REPORT | VOL 2

+15 SALES FROM 2019

2

LITCHFIELD COUNTY +2 SALES FROM 2019

53

BESPOKE LUXURY MAGAZINE

In 2020, the average sales price for Greenwich in the $7M+ segment was $10.8M.

54

110 Field Point Circle in Greenwich took the title as the most expensive home sold in Connecticut, for $48 million, more than four times the maximum sale prices for homes in Litchfield County, Middlesex County, and New Haven County. The average sales price in Greenwich alone was $10,810,000.

THE PROSPERITY REPORT | VOL 2

Interestingly, this increased trend in a predominantly suburban locale, traditionally home to primary residences, is inconsistent with other primary residential markets in the tri-state area such as New York City and North Jersey. In these markets, many residents choose to purchase a secondary home or even switch their primary residence to South Florida or the Hamptons, rather than upgrading locally.

Fletcher Development Residence - Darien, CT.

Courtesy Fletcher Development

55

INSIGHT INTO INTERIORS, ARCHITECTURE, AND LANDSCAPE DESIGN

DESIGN THINKING IN 2021

BESPOKE LUXURY MAGAZINE

Given the shifting lifestyles toward warmer, outdoor spaces, amid significantly more time spent at home, many have reconsidered the dynamic of their living spaces.

“From a design point of view, we started seeing the rise of the home as its own sort of mini resort, as its own self-contained entity, with incredible amenities that you would find in a luxury resort,” explains leading New York architect Andre Kikoski, such as an incredible pool deck, dramatic architecture, and transitional outdoor to indoor spaces.

For New York City residents moving to Palm Beach, for example, many have taken to artfully retrofitting contemporary design in traditional Palm Beach-style homes, in compliance with the city’s architectural regulations. “Palm Beach used to be very formal, and I think that’s changing a lot,” says Andrew Sheinman, President of renowned interior design firm Pembrooke & Ives. “Now, certainly, there's an influx of much younger people in Palm Beach, and with that has come a much more relaxed atmosphere, which is reflected in the design.”

Additionally, Covid-19 revealed a trend towards transitional spaces. “The spaces that people love to occupy are not necessarily indoors and not necessarily up to full sun,” says celebrated landscape architect Edmund Hollander. “People like being outdoors, where youʼre in a covered space, but open to the fragrance of the garden, where you can hear the birds, you can smell the flowers, yet you’re not being attacked by mosquitos.” The work his firm, Hollander Design Landscape Architects, has prioritized, with both contemporary and traditional architecture, has been responding to demand for such spaces.

Transitional spaces also allow for the home to evolve through a lens of “safety and comfort” says Kikoski, allowing it to shift away from a place of statement to one where “you are inspiring your visitors with a place of comfort, health, and wellness.”

®

56

Villa Dol, Pointe Milou St. Barths, F.W.I.

6,452 SF+/- | 5 Beds | 6F/1H Baths BespokeRealEstate.com – $29,950,000

THE PROSPERITY REPORT | VOL 2

57

E L E VAT E D

LIVING

631.537.7277

BMAarchitects.com

info@BMAarchitects.com

Internationally

thinking approach and

recognized as a leader

a collaborative process,

in modern architecture,

our award-winning team

BMA Architects designs

works collaboratively

luxury residential retreats

with clients to create

that celebrate modern

highly personalized

architecture and embody

modern homes.

the future of elevated living. With a forward-

THE NEW WAVE OF INNOVATIVE DESIGN + CONSTRUCTION IS HERE FAIRFIELD COUNTY

|

HAMPTONS

|

WESTCHESTER COUNTY

203-286-6166

| FLETCHERDEVELOPMENTLLC.COM

BESPOKE LUXURY MAGAZINE

62

DIAMOND DEMAND

I N S I G H T I N T O T H E U LT R A LUXURY DIAMOND MARKET

With a decreasing natural supply and stronger-thanexpected demand, the rare diamond market is glistening.

Round Brilliant Diamond 12.52 Carats

THE PROSPERITY REPORT | VOL 2

I-Color VS11 Ideal Cut

63

In March of 2020, diamond mines closed.

Unlike closures in other sectors of the luxury economy, however, mine closures gave the diamond market the jolt it needed after years of stagnation. Though sales volume suffered in the immediate aftermath of the pandemic, the demand for rarer and fancy diamonds soared in the following months. As a result, prices have risen dramatically.

the last five years. The pandemic, however, resulted in a 20% larger decrease in 2021 than predicted. Consequently, prices for diamonds above three carats rose approximately 20% between 2019 and 2020. Raymond SancroftBaker, Jewelry Consultant at The Fine Art Group and former European Jewelry Director at Christie’s, says that this decrease in global production caused a disproportional surge in demand specifically for large, colored diamonds, the rarest of all mined diamonds, “of which there are only about ten sold at auction per year.” Notably, this contrasts with the lesser demand for small “commercial” white diamonds, for which consumer purchasing power was more negatively influenced by the pandemic.

BESPOKE LUXURY MAGAZINE

According to the Zimnisky Index, a popular tool used to analyze global diamond prices, formulated each year by industry analyst Paul Zimnisky, global diamond production fell approximately 23% between 2019 and 2021.

Before the pandemic, experts had already expected diamond production to decrease between 2021 and 2025, due to oversupply over

Rough Diamond Price Performance by Size Over Past 6 Years 5 - 9 C A R AT

3 - 4 C A R AT

> 1 . 5 C A R AT

120 *Data curated by Paul Zimnisky, Zimnisky Diamond AnalyticsTM.

PRICE INDEX

110

100

90

80

70

Q1

2015

Q2

Q3

Q4

Q1

2016

Q2

Q3

Q4

Q1

2017

Q2

Q3

Q4

Q1

2018

Q2

Q3

Q4

Q1

2019

Q2

Q3

Q4

Q1

2020

Q2

Q3

Q4

2021

The price growth for diamonds above 3 carats is starkly greater than for diamonds below 1.5 carats, signaling a higher demand for large, fancy diamonds over commercial ones.

64

INSIGHT

A “red” diamond is simply a brilliant intensification of pinkness.

Purchased for $8,750,360

by Laurence Graff

THE PROSPERITY REPORT | VOL 2

13.33 Carat Rough Pink Diamond

Graff Has Cut and Polished into a 5.63 Carat Fancy Pear-Shape

Graff Lesotho Pink Diamond.

Courtesy Graff

65

INSIGHT

BESPOKE LUXURY MAGAZINE

The 302 carat Graff Lesedi La Rona, the worldʼs largest square emerald diamond, was 1 of 67 cut from this 1,109 carat rough diamond.

GRAFF LESEDI LA RONA SOLD FOR $53M

Before – 1,109 Carat Rough Diamond.

66

As a result of a heightened interest in large, colored diamonds, a 14.83-carat fancy purple-pink diamond, called “Spirit of the Rose,” sold for $26.6 million at auction in November of 2020. This set a record price for a purple-pink gem and ranked it among the most valuable polished diamonds in the world.

To be sure, demand for large colored diamonds was not down before the pandemic, per se. Caroline Scheufele, the Co-President & Artistic Director of Chopard, explains that “the increased appearance of important stones that we’ve seen in the last couple of years did not have the adverse effect of lowering value and price, rather it stabilized the market.

Courtesy Graff

T H E L A R G E S T, H I G H E S T C O L O R , HIGHEST CLARITY DIAMOND EVER CERTIFIED BY THE GIA

THE PROSPERITY REPORT | VOL 2

Graff Lesedi La Rona Diamond.

In addition to the lower supply of diamonds on the market, consumer behaviors shaped by the pandemic also contributed to demand. Joshua Allen, a Principal at Fabrikant, esteemed New York jewelry house founded in 1895, notes that clients who would have otherwise spent money on luxury travel opted to invest in a timeless jewel instead, with the added benefit of safeguarding against inflation. No good on the planet has a similar value-to-weight ratio as a fancy colored diamond, says Zimnisky, which can reach over $1 million per carat, and which can hold its value indefinitely over time.

After – Graff 302 Carat Square Emerald Cut.

67

BESPOKE LUXURY MAGAZINE

Graff Tribal Emerald & Diamond Earrings & Necklace.

Courtesy Graff

68

Emeralds: 60 Carats Diamonds: 9 Carats

THE PROSPERITY REPORT | VOL 2

Emeralds: 418 Carats Diamonds: 76 Carats

INSIGHT

Prices for diamonds above three carats rose approximately 20% between 2019 and 2020.

69

BESPOKE LUXURY MAGAZINE

INSIGHT

Last year, the $26.6M sale of a 14.83 carat stone broke the record for a purple-pink diamond ever sold at auction.

70

Fabrikant – Assortment of Diamond Necklaces & Bracelets, 134 Carats Total.

Courtesy Bespoke Luxury Marketing

Looking towards the next few years, industry indices predict diamonds will trade for higher prices than they are today, as diamond production is anticipated to continue to decrease at an average rate of 20% until 2025, from 144 million carats produced globally to about 120 million.

“As long as the market continues to trend in a positive direction, I believe

we will see more of these everyday diamond purchases,” says Marc Hruschka, the President & CEO of Graff USA. “For many, it’s a way to celebrate leading a more ‘normal’ life then we have in the last year.”

Scheufele agrees; one can “put on a most prized piece and simply enjoy its intrinsic beauty,” she says. Maybe that’s the meaning of true luxury.”

THE PROSPERITY REPORT | VOL 2

71

BESPOKE LUXURY MAGAZINE

72

BRILLIANT

PRINCESS

MARQUISE

The most popular—and most expensive—diamonds are round brilliant cuts. They have the most sparkle and brilliance, as the circle shape encourages rays of light to reflect against different facets in the diamond.

A princess diamond combines the best of both worlds: a square-rectangular shape with a brilliant cut. Princess diamonds are popular as they can work in almost any style of ring, so are often used in engagement rings.

Marquise diamonds have a unique shape, often described as lips or eyes. Due to its elongated shape, this cut creates an illusion that the stone is a greater size, while making the finger appear longer and slimmer.

INSIGHT

Elongated cuts make the diamond appear bigger and the finger more slender.

THE PROSPERITY REPORT | VOL 2

CUSHION

OVA L

EMERALD

Combines a square cut with rounded corners, much like a pillow. The cushion cut has been around for almost 200 years, and must be very carefully shaped as minor facets can easily change the stone’s appearance.

A modified brilliant cut, ovals possess a similar fire and brilliance to brilliant cuts, with the added advantage of an elongated shape. A limited supply of beautifully cut ovals has led to a 25 to 30% price increase over the last year.

Emerald diamonds have chiseled step cuts with straight linear facets, producing a hall-ofmirrors effect. Their unique pavilion and large, open table makes them appear larger than a similarly-sized round diamond.

73

BESPOKE LUXURY MAGAZINE

Fabrikant – Fancy Vivid Yellow – Radiant Cut 10.32 Carat, 1.28 Carat Side Stones.

Courtesy Bespoke Luxury Marketing

74

INSIGHT Raymond Sancroft-Baker

Jewelry Consultant, The Fine Art Group

“Yellow diamonds derive their color from an overabundance of nitrogen.”

THE PROSPERITY REPORT | VOL 2

Chopard Haute Joaillerie Earrings – Two 5 Carat Fancy Vivid Yellow Diamonds, Two 1 Carat White Diamonds in 18k White and Yellow Gold.

Courtesy Chopard

Color Colored diamonds, also known as “fancy” diamonds, are those whose natural color range extends out of the D to Z color range used by most gemologists to classify the blue and yellow hues in a classic white diamond.

Pink diamonds, the rarest of all colors, get their tint from a “slippage of crystallographic lattice,” explains Raymond-Sancroft-Baker, the Jewelry Consultant at The Fine Art Group and former European Jewelry Director at Christie’s.

Pink diamonds are followed in popularity and rarity by yellow diamonds, which retain an over-abundance of nitrogen, and then by blue, which get their color from an increased presence of boron.

Still, fluctuations in each gem vary within a color. More desirable than pink diamonds are “red” diamonds, which are simply a brilliant intensification of pinkness. In the case of blue diamonds, boron itself is rare, which, depending on its deposits in a diamond, can result in Light blue, Fancy blue, Intense blue, or Deep blue. “The best is Vivid blue, which is super rare,” says Sancroft-Baker.

“I do have a particular fondness for pink diamonds,” says Caroline Scheufele, the Co-President and Artistic Director of Chopard.

“For me, pink diamonds exude a fusion of femininity and boldness.”

75

FL

IF

VVS2

Very, very small inclusions

VS1

VS2

Very small inclusions

S1

Clarity Unlike the classic vision of an expert gemologist scrupulously analyzing a diamond under the microscope, clarity is not the greatest determinant of a diamond’s value. In reality, collectors may weigh clarity less than cut or color.

Flawless diamonds are stones whose internal lattice structure has no inclusions or irregularities, which appear as small scratches under a 10x microscope.

Since inclusions are completely invisible to the naked eye, if one stone has a rare color or brilliant cut, most often it can be appraised at a higher rate.

76

S2

Small inclusions

BESPOKE LUXURY MAGAZINE

Flawless

VVS1

I1

I2 Inclusions

I3

THE PROSPERITY REPORT | VOL 2

INSIGHT Robert Cornfield

Principal, Fabrikant

“The average price per diamond increases about 10-15% with each upgrade in clarity and color grade.”

77

An Elevated Landscape An Elevated Lifestyle

2000 Ocean by Enrique Norten – TEN Arquitectos, a contemporary 38-story glass tower showcasing panoramic views of the Atlantic Ocean, Intracoastal Waterway and surrounding beaches, is located just north of South Floridaʼs Golden Beach. Proudly positioned on the beach, and closer to the ocean than any of its neighbors, it is bathed with sunlight from sunrise to sunset. Sixty-four families will have the privilege to call 2000 Ocean their home.

3-5 bedroom oceanfront residences starting at 2,913 sq. ft., featuring kitchens by Boffi and interior design services by Minotti.

Concept design by Kobi Karp.

Priced at $2.7M - Delivering Summer 2021.

For inquiries, or to schedule a private preview of 2000 Ocean at our on-site sales gallery, please calll 786.245.5453 or visit 2000ocean.com.

Connect with Bespoke at our Newest Destination in Miami

119 Washington Ave, Suite 500, Miami Beach, FL 33139-7228 | 305.800.9030

B E S P O K E R E A L E S TAT E . C O M

© 2021 Bespoke Real Estate LLC (“Bespoke”), a licensed Real Estate Broker. All rights reserved. All transactional data and statistics are powered by Bespoke Luxury Market Data. All creative content is powered by Bespoke Luxury Marketing LLC. Bespoke fully supports and complies with the Fair Housing Act, Equal Housing Opportunity Act and related state and local laws that prohibit discrimination.

Unlock Your Access Bespoke invites you to access our compelling data-driven platform for precisely pairing the world’s finest properties with their most qualified audience; benefit from the specialized resources of the collective Bespoke brand as we work purposefully on your behalf —Tailored for $10M+.

We are grateful to be of value.

Over $5Billion in $10Million+ Transactions

™

DRIVING A NEW COURSE

INSIGHT INTO THE U LT R A - L U X U R Y M A R K E T OF GOLF

BESPOKE LUXURY MAGAZINE

Offering an ideal setting for outdoor play, golf has grown into one of the most popular sports of the year.

82

THE PROSPERITY REPORT | VOL 2

The Reserve at Moonlight Basin, 5th Hole – Cameron, Montana.

Courtesy Evan Schiller Golfshots.com

83

84

BESPOKE LUXURY MAGAZINE

THE PROSPERITY REPORT | VOL 2

In 2020, golf had a renaissance.

Offering an ideal setting for outdoor play, the sport grew profoundly, breaking decade-old records. There was a 13.9% increase in the number of rounds played compared to the previous year, the highest increase in 23 years, from 441 million to 502 million rounds. Equipment sales grew by 10.1%, reaching $28 billion nationally.

The number of new golfers flourished,

particularly among new demographics, with increased interest among women and younger players.

Punta Espada Golf Club 2nd & 12th Holes – Dominican Republic.

Courtesy Evan Schiller

Unlike most contact sports, golf provides an outdoor and socially distanced environment, making it attractive to those who prioritize being active and social despite a pandemic. Additionally, remote work allowed for greater schedule flexibility and more time for recreation.

85

BESPOKE LUXURY MAGAZINE

Mauna Kea Golf Course, 11th Hole – Waimea, Hawaii – Designed by Rees Jones.

Courtesy Larry Lambrecht

86

INSIGHT The National Golf Performance Report Golf Datatech

Golf equipment sales reached $2.8B in 2020, a 10.1% increase compared to 2019.

THE PROSPERITY REPORT | VOL 2

87

Notably, golf has been taken up at an astonishing rate by younger players. The National Golf Foundation estimates 630,000 players under the age of 18 played golf for the first time in the last twelve months. David Pillsbury, the CEO of ClubCorp, the largest owner and operator of private clubs in the country, says that even among slightly older groups, 47% of all new players were between the ages of 30 and 50.

BESPOKE LUXURY MAGAZINE

According to Jay Karen, the CEO of the National Golf Course Owners Association, or the NGCOA, the latent demand of golf players, defined as those who demonstrate

interest but have yet to play, has also skewed younger. This is one of the most important metrics in the industry.

W H AT I N N O VAT I O N M E A N S FOR GOLF

To accommodate the new influx of players, innovation in golf course architecture and technology has been a huge focus for Rees Jones, renowned course architect, and the designer of The Atlantic Golf Club and The Bridge in Bridgehampton. One of his recent priorities has been innovating drainage systems to ensure a course’s longevity and efficiency.

Rounds of Golf Played Annually Over Past 5 Years

# O F R O U N D S P L AY E D ( I N M I L L I O N S )

500

500M

480

460

469M

456M

440

441M

425M

420

400 2016

2017

2018

*Data curated by National Golf Foundation and Golf Datatech.

88

2019

2020

INSIGHT The Graffis Report

National Golf Foundation

In 2020, there were 13.9% more rounds of golf played than in 2019. Among private clubs, it was a 19.9% increase.

THE PROSPERITY REPORT | VOL 2

Nantucket Golf Club – Siasconset, MA Designed by Rees Jones.

Courtesy Larry Lambrecht

89

BESPOKE LUXURY MAGAZINE

California Golf Club, 3rd Hole – San Francisco, California.

Courtesy Evan Schiller

90

THE PROSPERITY REPORT | VOL 2

91

BESPOKE LUXURY MAGAZINE

INSIGHT The Graffis Report

National Golf Foundation

There were an estimated 500M rounds of golf played in 2020.

92

When luxury clubs, homes, and communities are built around golf courses, Jones explains, their accompanying watershed areas bring more water to the courses and make them prone to flooding. To accommodate these increased drainage loads, new and remodeled courses feature technologically improved drainage systems.

Andalusia Golf Course, 4th Hole – La Quinta, California Courtesy Rees Jones

THE PROSPERITY REPORT | VOL 2

For example, Jones’ courses place new liner technology in sand bunkers, to prevent sand erosion and contamination.

This both preserves functional drainage and extends the life of the sand.

Additionally, Jones is designing courses to meet the needs of an evolving player demographic. According to the USGA,

the average driving distance increased 16 yards since 1997, making courses shorter and less challenging for highly skilled players. In order to accommodate people of all ages and abilities, including beginners, Jones creates multiple tees, which provide different angles of play and levels of challenge on the same hole.

93

BESPOKE LUXURY MAGAZINE

Pebble Beach Golf Links 7th Hole – Pebble Beach, California.

Courtesy Evan Schiller

94

THE PROSPERITY REPORT | VOL 2

95

96

BESPOKE LUXURY MAGAZINE

INSIGHT The Graffis Report

National Golf Foundation

630,000 players under the age of 18 took up golf for the first time in the last twelve months.

As far as making the play itself more efficient, Karen predicts advanced gaming technologies will infiltrate the golf world. This will allow players to track strokes, birdies, or putts, and will enable more complex and gamified betting systems. The PGA ShotLink system, which captures and reports insight about every shot in real-time, is used at about 93 professional events per year, suggesting similar technology will become mainstream on recreational courses.

THE PROSPERITY REPORT | VOL 2

If a course offers only limited tee options, “it makes it difficult for the shorter hitter or beginner to play the course.” By creating multiple tees, “the course is more playable for every caliber of player,” including different golf handicaps and seniors. “We really have to rethink our designs,” he concluded.

Top courses across the country such as BallenIsles in Florida, Pebble Beach in California, and the Hamptonsʼ Shinnecock Hills or National Golf Links of America in New York, are accommodating these new architectural and technological efficiencies. With more players outside than ever, they must be, creating a new future for a classic game.

Redstick Golf Club 9th & 18th Holes – Vero Beach, FL – Designed by Rees Jones.

Courtesy Jeffrey Bertch

97

BESPOKE LUXURY MAGAZINE

Sebonack Golf Course, 2nd Hole – Southampton, NY. Courtesy Larry Lambrech

98

THE PROSPERITY REPORT | VOL 2

99

Iconic Architecture + Interior Design

AKARCH.COM

Tw o We s t Wa t e r , S a g H a r b o r

BESPOKE LUXURY MAGAZINE

104

TAKING OFF PRIVATE

INSIGHT INTO THE U LT R A - L U X U R Y M A R K E T O F P R I VAT E AV I AT I O N

Offering a safe haven in the skies, the private aviation market is rising to new heights.

THE PROSPERITY REPORT | VOL 2

Bombardier Challenger 350.

Courtesy Sandro Koster

105

BESPOKE LUXURY MAGAZINE

INSIGHT Air Charter Services Market Analysis Technavio

Despite a 55% plunge in commercial travel, the air charter services market grew 4.52%, from $26.6B in 2019 to $27.8B in 2020.

106

Soaring through the sky on a private flight has often spelled comfort, convenience, and ease. Over the last twelve months, it has also provided another more critical offer: health and safety. As a result, the market for private aviation is prospering.

During a year that witnessed a 55% plunge in commercial travel, the air charter services market grew 4.52%, from $26.6 billion in 2019 to $27.8 billion in 2020, according to

THE PROSPERITY REPORT | VOL 2

a market report by business research firm Technavio. Market growth is expected to continually increase over the next three years, reaching a market value of $33 billion, at a CAGR of 5%.

Likewise, rates of new travelers taking to private aviation more than tripled last year, marked by a 320% increase in inquiries for new memberships with top private charter services since July 2020.

Boeing Business Jets (BBJ).

Courtesy Sandro Koster

107

BESPOKE LUXURY MAGAZINE

In a pandemic world, the primary reason for this growth is intuitive: private flight is innately more hygienic and thus safer. According to a recent McKinsey analysis, private jets have only 20 to 30 touchpoints of contact with other people and objects, while the average commercial flight risks about 700 points of contact. Private passengers typically encounter a mere 8 people door-to-door, compared to 600 for a standard commercial passenger and 136 for a business class passenger.

108

Alexis Fecteau, the Global Director of Marketing at Boeing Business Jets, explains, “while commercial airline staff and private jet staff maintain sanitization as a top priority, and while both meticulously clean cabins between flights, private jets have fewer passengers, which streamlines and simplifies the process.” Private flyers also see this reduced number of passengers they can potentially come into contact with as a benefit to private flying.

Boeing Business Jets (BBJ).

Courtesy Boeing

Conceptual Design.

Courtesy Jet Aviation

“Before the pandemic, only 10% of people who could afford to fly private did,” says Matteo Atti, the Executive Vice President of Marketing and Innovation at VistaJet, a global private aviation company. He explains that private airline providers are able to take dramatically better safety precautions, resulting in stable consumer demand even after moments of initial panic subsided. “While standard passengers haven’t all switched over to private, former business class flyers in particular have digressed,” opting instead for private travel, says Atti. Recreational flyers have contributed to the surge as well, many of whom were bound to take strict health precautions yet were especially motivated to travel in the face of lockdowns.

INSIGHT

McKinsey & Company

Private flights have only 20-30 points of contact with other people and objects. The average commercial flight has about 700.

109

110

BESPOKE LUXURY MAGAZINE

THE PROSPERITY REPORT | VOL 2

Gulfstream 650.

Courtesy Sandro Koster

111

BESPOKE LUXURY MAGAZINE

Top 10 Most Traveled U.S. Private Jet Airport Routes in 2020

YOY % INCREASE

ROUTE

↑467%

PALM BEACH, FL

WESTCHESTER COUNTY, NY

KPBI ▶ KHPN

↑457%

BOCA RATON, FL

FARMINGDALE, NY

KBCT ▶ KFRG

↑392%

PALM BEACH, FL

WESTHAMPTON BEACH, NY

KPBI ▶ KFOK

↑357%

VAN NUYS, LOS ANGELES, CA

↑275%

PALM BEACH, FL

LAURENCE HANSON AIRPORT, BOSTON, MA

KPBI ▶ KBED

↑231%

PALM BEACH, FL

FARMINGDALE, NY

KPBI ▶ KFRG

↑219%

WESTCHESTER COUNTY, NY

↑141%

BROWNSVILLE, TX

↑131%

HOUSTON, TX

↑131%

MIAMI OPA-LOCKA AIRPORT, FL

AIRPORT PA I R

ASPEN-PITKIN COUNTY, CO

PALM BEACH, FL

MONTERREY, MX

ASPEN-PITKIN COUNTY, CO

LA ISABELA, DOM

*Data curated by WingX.

112

KVNY ▶ KASE

KHPN ▶ KPBI

KBRO ▶ MMAN

KHOU ▶ KASE

KOPF ▶ MDJB

INSIGHT

6 of the top 10 routes with the most growth were between New York and South Florida.

THE PROSPERITY REPORT | VOL 2

Global 7500.

Courtesy VistaJet

113

INSIGHT Matteo Atti

EVP of Marketing & Innovation, VistaJet

BESPOKE LUXURY MAGAZINE

“Private aviation is a highly fragmented market, with the top players only accounting for 10% of it.”

114

THE PROSPERITY REPORT | VOL 2

According to an analysis of private flights between 2019 and 2020, 5 of the top ten routes with the most yearover-year growth were all between South Florida and New York; from the Hamptons, Westchester or North Jersey to Palm Beach or Boca Raton.

The greatest growing route, between Palm Beach International Airport and Westchester County Airport, increased 467% between 2019 and 2020.

Looking optimistically to the future, experts predict the market will consolidate, driven not only by demands for top health safety, but also by accident prevention. Today, about 80% of the market is made up of small charter companies. In Europe particularly, this fragmentation has led to the rise of “gray” charter airlines, or airlines flying passengers out of the scope of government regulators and routine safety inspections.

Global 7500.

Courtesy VistaJet

115

INSIGHT

WingX

BESPOKE LUXURY MAGAZINE

The number of private flights between Palm Beach and Westchester County grew 467% between 2019 and 2020.

Global 7500.

Courtesy VistaJet

116

Top 10 Most Traveled U.S. Airports via Private Plane in 2020

AIRPORT

CITY

36,508

TETERBORO AIRPORT

BERGEN COUNTY, NJ

29,809

DALLAS LOVE FIELD AIRPORT

DALLAS, TX

2 7,7 8 1

PALM BEACH INTERNATIONAL AIRPORT

PALM BEACH, FL

2 4 ,7 3 9

VAN NUYS AIRPORT

LOS ANGELES, CA

24,243

CENTENNIAL AIRPORT

DENVER, CO

21,859

WESTCHESTER COUNTY AIRPORT

WHITE PLAINS, NY

2 1 ,7 9 4

SCOTTSDALE AIRPORT

SCOTTSDALE, AZ

20,539

DEKALB-PEACHTREE AIRPORT

ATLANTA, GA

2 0 ,1 4 5

WILLIAM P. HOBBY AIRPORT

HOUSTON, TX

18,910

NAPLES AIRPORT

NAPLES, FL

THE PROSPERITY REPORT | VOL 2

# OF FLIGHTS

*Data curated by WingX.

117

BESPOKE LUXURY MAGAZINE

Global 6500.

Courtesy Bombardier

118

INSIGHT Matteo Atti

EVP of Marketing & Innovation, VistaJet

“VistaJet saw a 29% increase in new subscription memberships between 2019 and 2020.”

THE PROSPERITY REPORT | VOL 2

119

Four Seasons Private Jet.

BESPOKE LUXURY MAGAZINE

Courtesy Four Seasons

Historically, private aviation has had higher per capita accident rate because of this laissez-faire nature of the industry.

As a result, private flyers increasingly are demanding more accountability from private airlines to uphold safety regulations, which larger providers can more reliably guarantee. The consolidation of small charter companies into larger full-service providers, such as VistaJet, will mean less small charter

120

companies flying under the radar, as it were, and therefore safer rides.

Additionally, as a marketing strategy to ensure that people continue flying private after the pandemic, airlines have built out product offerings in the form of partnerships with related but distinct hospitality vendors that provide door-to-door luxury experiences.

According to a study by Barton Consulting and VistaJet surveying luxury hospitality

THE PROSPERITY REPORT | VOL 2

brands, around 80% of businesses believe that an enhanced “ecosystem” of partnerships across the travel sector will improve their resilience. A primary example of this ecosystem is the Four Seasons Private Jet Experience, whose 2022 itinerary will include private ultra-luxury tours across Africa and Southeast Asia.

With a soaring demand for holistic experiences, the demand for end-to-end providers is likewise taking off.

INSIGHT Air Charter Services Market Analysis Technavio

The global air charter service market is expected to surpass $33B by 2024, at a 5% CAGR.

121

Comprehensive Landscape Ser vices

I N FO R M E D BY A R T I ST RY

EXECUTED WITH PRECISION

6 3 1 - 7 2 5 - 0 0 0 5

|

I N F O @ S U M M E R H I L L A N D S C A P E S . C O M

S U M M E R H I L L L A N D S C A P E S . C O M

The Luxurious Side of Travel E X P LO R E LU X URY C H A RTER E XPE RIE NCE S F R OM M ORA N YACH T & S H IP

KISMET | 312’ Lürssen

World Leaders in Sales, Charter and New Construction of Luxury Megayachts

M O R A N YAC H TS .COM F O RT L AU D E R DAL E

N E WP O RT

LO N D O N

M O NAC O

M O S C OW

IN THE FAST LANE

INSIGHT INTO THE U LT R A - L U X U R Y M A R K E T OF COLLECTOR CARS

BESPOKE LUXURY MAGAZINE

A dynamic collector car market is racing toward unprecedented sales, broken records, and better technology.

126

THE PROSPERITY REPORT | VOL 2

Original Porsche 550 Spyders.

Courtesy Stephan Bauer

127

BESPOKE LUXURY MAGAZINE

INSIGHT

This 1934 Bugatti, Type 59 Sports, was the most expensive car sold at auction in 2020 for £9.5M.

128

Collector cars have always set the standard for driving in the luxury lane, especially in 2020, when the open road provided a much-needed taste of freedom.

Last September, the $12.6 million sale of the 1934 Bugatti, Type 59 Sports, formerly a Works Grand Prix in 193435 and once owned by King Leopold III of Belgium, became the most expensive

THE PROSPERITY REPORT | VOL 2

single collector car trade in 2020. It sold at the Passion of a Lifetime auction hosted by leading automotive auctioneer Gooding & Company, at the Hampton Court Palace in London. Despite the auction's online bidding and social distancing, Passion of a Lifetime had $47 million in total sales and a $3.2 million average sale price, breaking the record for the highest average sale per car at a single public auction.

#1 SALE IN 2020

1934 Bugatti Type 59 Sports.

Sold: £9,535,000

≈ $12,661,526 Courtesy Gooding & Company and Mathieu Heurtault

129

BESPOKE LUXURY MAGAZINE

This auction is among the many highlights in the collector car industry’s year. Gooding & Co.’s five car auctions since January 2020—three of which were online only—collectively fetched $144 million in total, with an average sale price of $767,371 and 91% sellthrough rate.

Similarly, Mecum Auctions, the largest auction house in volume for ultra-luxury

130

collector cars, is riding on an 80% sellthrough rate from its 2020 auctions, three of which were exclusively online.

Coming off a strong year, their recent January 2021 auction grossed $110 million in sales volume, breaking their own previously-held volume record by 15%. The top single sale at this 2021 auction was Caroll Shelby's 1965 Shelby 427 Cobra Roadster, for $5.94 million.

#3 SALE IN 2021 YTD

Carroll Shelby's Personal 1965 427 Cobra Roadster.

One of Only Five 427 Cobras, Originally Finished in Charcoal Gray.

Original body and chassis.

Sold: $5,940,000 Courtesy of Mecum Auctions, Inc.

THE PROSPERITY REPORT | VOL 2

INSIGHT

This 1965 427 Cobra Roadster was one of Caroll Shelbyʼs personal cars for over 50 years.

131

132

BESPOKE LUXURY MAGAZINE

INSIGHT

The top five trades in 2020 were all from the same manufacturer and the same era: 1920s-‘30s Ettore-era racing Bugattis.

“In this market,” says David Gooding, Gooding & Co.ʼs Founder and President, “we are observing a greater divide between good, better, and best, and clients are increasingly selective with their purchases.” In large part, that is due to the increasing free time the pandemic afforded to everyone, as well as travel limits and canceled vacations that encouraged collectors to turn their attention to at-home luxuries.

THE PROSPERITY REPORT | VOL 2

LOCAL LUXURIES

The advent of efficient online bidding has been another major factor driving sales during 2020, says John Kraman, the Director of Company Relations at Mecum Auctions. Auction houses that quickly adapted to seamless online bidding experiences have seen outsized success compared to those that did not. For Mecum, online and absentee participation constituted 3 to 5% of all bidding before the pandemic; by January 2021, online bidders made up 30% of all trades.

#2 SALE IN 2020

1937 Bugatti Type 57S Atalante.

Sold: £7,855,000 ≈ $10,430,654 Courtesy Gooding & Company and Mathieu Heurtault

133

INSIGHT

BESPOKE LUXURY MAGAZINE

This 1932 vehicle is 1 of 14 Super Sports including the coachwork of Jean Bugatti, the son of Ettore, the founder.

134

#3 SALE IN 2020

1932 Bugatti Type 55 Super Sport Roadster.

Sold: $7,100,000 Courtesy Bonhams

THE PROSPERITY REPORT | VOL 2

135

BESPOKE LUXURY MAGAZINE

INSIGHT John Kraman

Director of Company Relations, Mecum Auctions

“Popular among younger buyers are Resto-Mods, or vintage cars updated with modern mechanicals.”

136

G E N E R AT I O N A L TA S T E S D I V E R G E

Notably, Gen X and millennial buyers are also participating in the market at higher rates. Unlike Boomer “nostalgia” buyers who remember mid-20th century cars as new models, the younger “legacy” collectors fantasize about “stories and the hype, the television shows and the styling of the cars,” says Kraman. Most popular

THE PROSPERITY REPORT | VOL 2

in this group is a Resto Mod, or a vintage car updated with all modern mechanicals.

John Wiley, a senior analyst at Hagerty’s Automotive Intelligence Group, says that in the Porsche market, Baby Boomers tend to favor air-cooled, long-hooded models, whereas Millennials opt for “newer, watercooled cars—namely 997 and 991—but also show plenty of interest in the aircooled 911 of their youth, the 993.

Original Porsche 550 Spyders.

Courtesy Stephan Bauer

137

BESPOKE LUXURY MAGAZINE

INSIGHT

Debuted in the 1932 Le Mans 24-Hour Race, this vehicle was later rebodied by Italian coachbuilder Figoni.

138

THE PROSPERITY REPORT | VOL 2

#5 SALE IN 2020

1931 Bugatti Type 55 Two-Seat Supersport.

Sold: £4,600,000 ≈ $5,543,460 Courtesy Bonhams

139

BESPOKE LUXURY MAGAZINE

Aston Martinʼs DB3S set a new Australian land speed record in 1957 at 143.19 MPH.

140

Sandra Button, the Chairman of Pebble Beach Concours d’Elegance, one of the most prestigious collector car shows in the U.S., adds that, “authenticity, whether in a preservation or a restored car, is increasingly important.

Collectors want cars that are true to themselves and true to their

era.” She adds that there is a shift toward favoring newer cars as well.

“Tastes have shifted away from the more formal, chauffeured cars that won Concours in decades past,” she says. Small cars can be elegant, “as long as the designer practices restraint. On a small car, thereʼs no room for error.”

INSIGHT Sandra Button

#8 SALE IN 2020

1955 Aston Martin DB3S. One of Only 20 Customer DB3S Examples Built.

Raced in Europe and the UK as Part of David McKay and Tony Gaze’s Kangaroo Stable.

Sold: £3,011,000 ≈ $3,998,306

Chairman, Pebble Beach Concours d'Elegance

“Environmental converter kits are being made for postwar cars, such as Jaguar E-types and Aston Martins.”

Courtesy Gooding & Company and Mathieu Heurtault

THE PROSPERITY REPORT | VOL 2

141

1966 Ferrari 275 GTB Long Nose.

BESPOKE LUXURY MAGAZINE

Sold in 2020: $3,080,000 Courtesy Gooding & Company and Brian Henniker

H I S TO R I C B U G AT T I S C R O W N 2020 TRADES

While the Bugatti make is among the best in the world, the most expensive collector cars at auction have historically been Ferraris.

However, the fact that in an already bullish year, the top five sales at public auction were all from the same manufacturer and the same era—the Ettore and Jean Bugatti era, or 1920s to late 1930s racing Bugattis—suggests

142

that collectors are prizing the marque’s longevity of performance. 2020 was the first time that the top five cars sold at auction were made by a single manufacturer.

Despite a declining interest in pre-war vehicles, Bugatti is an exception, as their value increases directly with their age.

“Every historic Bugatti vehicle is unique,” says Frank Wilke, Managing Director of Classic Analytics. “Those built between 1920

THE PROSPERITY REPORT | VOL 2

and the end of the 1930s set standards in both performance and design. However last year’s auctioned vehicles were particularly outstanding in terms of history and originality,” he says.

INSIGHT

Carrozzeria Scaglietti, the coachwork designer, built just 205 examples of Ferraris with the long nose body style.

143

BESPOKE LUXURY MAGAZINE

As of mid-April, the top 2021 sales have been cars that date from the late ‘50s to early ‘70s.

144

That said, as of mid-April 2021, the top four sold cars date from the late ‘50s to early ‘70s, the top sale being the 1972 Matra MS 670, auctioned by Artcurial auction house, for $8.3 million.

Looking to the future, experts say that the collector car market will accommodate environmental concerns. “Converter kits are being made for some collector cars—primarily post-war cars like Jaguar E-types and Aston Martins,” explains Button.

THE PROSPERITY REPORT | VOL 2

#7 SALE IN 2020

1971 Lamborghini Miura P400 SV Speciale.

One of Only 150 SVs Built.

385 BHP at 7,850 RPM. Sold: £3,207,000 ≈ $4,258,575 Courtesy Gooding & Company and Mathieu Heurtault

“But the collectors considering such a conversion usually want assurance that their car can be returned to its original state without any damage.”

The infiltration of self-driving technologies are also unlikely, she says. “If you have a collector car, and you want to enjoy it on drives and rallies, then you want to do the driving.”

With this yearʼs upcoming events— from the Goodwood Revival to the Pebble Beach Concours d’Elegance, Amelia Island Concours d’Elegance, and the Villa d’Este Concorso d’Eleganza—time will tell if the same trend materializes throughout the rest of 2021, favoring historic racing as last year, or if a new favorite will win the hearts of collectors. Either way, there’s a promising road ahead.

145

BESPOKE LUXURY MAGAZINE

1974 Lamborghini Contouch LP400.

Courtesy Stephan Bauer

146

Top 10 Most-Expensive Cars Sold at Public Auction, 2020

LOT

CAR

PRICE

AUCTION HOUSE

1934 BUGATTI TYPE 59 SPORTS

$12,661,526

GOODING, LONDON

2

1937 BUGATTI TYPE 57S ATALANTE

$10,430,654

GOODING, LONDON

3

1932 BUGATTI TYPE 55 SUPER SPORT ROADSTER

$7,100,000

BONHAMS, AMELIA ISLAND

4

1928 BUGATTI TYPE 35C GRAND PRIX

$5,225,286

GOODING, LONDON

5

1931 BUGATTI TYPE 55 TWO-SEAT SUPERSPORT

$5,543,460

BONHAMS, PARIS

6

2001 FERRARI 550 GT1 PRODRIVE

$4,290,000

RM SOTHEBY'S, SHIFT/MONTEREY

7

1971 LAMBORGHINI MIURA P400 SV SPECIALE

$4,258,575

GOODING, LONDON

8

1955 ASTON MARTIN DB3S

$3,998,306

GOODING, LONDON

9

1965 SHELBY GT350 PROTOTYPE

$3,850,000

MECUM, INDIANAPOLIS

10

1968 FORD MUSTANG GT “BULLIT”

$3,740,000

MECUM, KISSIMMEE

THE PROSPERITY REPORT | VOL 2

1

*Data Curated by Top Classic Car Auctions.

A N N UA L C A R C O L L E C TO R E V E N T S TO AT T E N D, 2 0 2 1

Given last year’s travel and event limitations, we’ve curated the most anticipated events for collector car enthusiasts to attend in 2021.

MILLE MIGLIA (EST. 1927) | JUNE 16-19, 2021 | BRESCIA TO ROME GOODWOOD FESTIVAL OF SPEED (EST. 1993) | JULY 8-11, 2021 | GOODWOOD HOUSE, CHICHESTER, WEST SUSSEX PEBBLE BEACH CONCOURSE D’ELEGANCE (EST. 1950) | AUGUST 15, 2021 | CARMEL, CALIFORNIA GOODWOOD REVIVAL (EST. 1998) | SEPTEMBER 17-19, 2021 | GOODWOOD HOUSE, CHICHESTER, WEST SUSSEX CONCORSO D`ELEGANZA VILLA D´ESTE (EST. 1929) | OCTOBER 1-3, 2021 | VILLA D'ESTE HOTEL, LAKE COMO

147

ARRIVING HOME, BEAUTIFULLY.

The Marina at Aston Martin Residences provides a unique and exclusive means of getting to and from the heart of Miami.

The ample depth of mooring means even the super yachts can berth on your doorstep. Unparalleled convenience designed for living life beautifully.

Riverwalk East Developments, LLC, a Florida limited liability company is the owner of the property on which the Condominium is to be constructed and the seller of the units in the Condominium and is for purposes of the Florida Condominium Act the “developer” of the Condominium (“Developer”). Developer has engaged G & G Business Developments, LLC. (“G & G”) to assist with the development and marketing of the Condominium and its units and Developer has a limited right to use the trademarked names and logos of G & G. Any and all statements, disclosures and/or representations relating to the Condominium shall be deemed made by Developer and not by G & G and you agree to look solely to Developer (and not to G & G and/or any of its affiliates) with respect to any and all matters relating to the development and/or marketing of the Condominium and with respect to the sales of units in the Condominium. All images and designs depicted herein are artist’s conceptual renderings, which are based upon preliminary development plans, and are subject to change without notice in the manner provided in the offering documents. All such materials are not to scale and are shown solely for illustrative purpose. For New York Purchasers only, the complete offering terms also require reference to that certain CPS-12 Application available from the Offeror under file number CP18-0005.

ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.

AMResidencesMiami Developed by G&G Business Developments LLC 300 BISCAYNE BOULEVARD WAY, MIAMI, FL

Your Vision, Our Expertise — An Integrated Approach to Artfully Designed Spaces

H A M P T O N S

|

N Y C

|

C O N N E C T I C U T

I C O N I C M O D E R N . C O M

BESPOKE LUXURY MAGAZINE

152

CURATING A NEW LEGACY

I N S I G H T I N T O T H E U LT R A LUXURY MARKET OF FINE ART

The famously traditional art market is finally embracing technology, propelling it into the modern business of luxury.

THE PROSPERITY REPORT | VOL 2

Clyfford Still, 1964.

Sold in 2020: $18,442,500 Courtesy Phillips

153

The art market is one of the largest legal unregulated markets in the world, and yet despite its stature at the helm of luxury, it has always been rather traditionalist. However, in the face of a year where by March 2020, auction sales descended almost 76% from the previous year, the pandemic’s economic disruption became the cannon the market needed to catapult it into a new era of global reach and democratized access.

154

Specifically, galleries, art fairs, auction houses, and institutions were forced to embrace new sales platforms and technologies, despite decades of reluctance. Simon de Pury, the renowned art auctioneer, dealer, and curator, attests to the market’s technological revolution, as well as its historical hesitation to have one; “In the first ten months of Covid, the market progressed more than it has in the ten preceding years,” he says.

Jean-Michel Basquiat – Portrait of A-One A.K.A. King, 1982.

Sold in 2020: $11,500,000 Courtesy Phillips

Barnett Newman – Onement V, 1905-1970.

Sold in 2020: $30,920,000 Courtesy Christie's Images LTD. 2021

INSIGHT Art Market Report 2021 Art Basel & UBS

By March 2020, sales in the global art market decreased by 76%; by December 31, that eased to -22% YoY, due to the market movement towards online sales.

155

INSIGHT Artsy Gallery Insights 2021 Artsy

BESPOKE LUXURY MAGAZINE

Online marketplace Artsyʼs e-commerce sales rose 150% YoY between 2019 and 2020.

In an Artsy analysis surveying 1,758 art businesses in 97 countries, 87% of respondents sold art online in some way last year, while one-third reported closing their physical space and moving to a purely online model. On the purchasing side, 30% of collectors who purchased art online did so for the first time in 2020.

Digital platforms also encouraged increased price transparency, making for a better user experience for collectors. Galleries had been wary about listing the prices of artworks online “out of a fear of appearing too transactional,” says Dustyn Kim, the Chief Revenue Officer of leading online art sales marketplace, Artsy. Transparent price listings that do not require a buyer inquiry, however, typically make sellers 6 times as likely to sell their work, a critical advantage in a year where inperson access to buyers was severely limited. As a result, there was a staggering 300% year-over-year increase in the ratio of gallery sales to inquiries at Artsy, says Kim.

George Condo – The Age of Reason, 2010.

Sold in 2020: £2,082,369 ≈ $2,869,930 Courtesy Phillips

156

157

158

YOUNGER COLLECTORS EMERGE AS GALLERIES GO VIRTUAL

Notably, online platforms attract much younger collectors, for whom purchasing big ticket items digitally is customary. In 2020, the number of 18 to 34-year-old collectors doubled from the previous year.

Access to larger global audiences also allowed galleries to participate in greater social movements and cause-driven work. For example, Artsy raised $8 million in online benefit auctions in 2020, for varied nonprofits and charitable causes.

Demand also increased for work by a diverse array of artists, including female artists and artists of color.

Cy Twombly – Untitled (Bolsena), 1928-2011.

Sold in 2020: $38,685,000 Courtesy Christie's Images LTD. 2021

Roy Lichtenstein – Nude with Joyous Painting, 1994.

Sold in 2020: $46,242,500 Courtesy Christie's Images LTD. 2021

159

Jean-Michel Basquiat – Ancient Scientist, 1984.

Sold in 2020:

HK$58,330,000

≈ $7,509,579

Courtesy Phillips

160

161

A D I G I TA L S E C O N DA R Y MARKET

Technology was similarly embraced in the secondary market. In 2020, the world’s three top international auction houses organized 644 onlineonly events, triple the amount of virtual auctions compared to the previous year, according to a 2021 report by Barron’s Consulting.

162

This online embrace also democratized participation and helped auctioneers nurture the aspirational collector.

“At each one of the big auctions, there have been up to 30% new buyers,” says de Pury, “which shows that there’s a massive renewal of the buyer base, much faster than usual.”

Roy Lichtenstein – White Brushstroke I, 1923-1997.

Sold in 2020: $25,417,000 Courtesy Sotheby's

Willem de Kooning – Women (Green), 1904-1997.

Sold in 2020: $23,260,000 Courtesy Christie's Images LTD. 2021

163

INSIGHT Art Market Report 2021 Art Basel & UBS

The U.S. remained the leader of global sales between 2019 and 2020, commanding a 42% share in total sales volume.

164

During Covid, online auctions at the major houses reached somewhere between 650,000 to 750,000 attendees.

While auctions were broadcasted online before the pandemic, Covid massively accelerated not only online viewership, but online bidding and purchases themselves, despite a small percentage

of viewers being active bidders. Still, even with increased access, online sales did not completely replace in-person ones, as sales in both the primary and secondary art and antiquities markets fell an estimated 22% from their 2019 levels, according to Art Basel and UBS’s recognized annual Art Market Report.

Edvard Munch – Summer Day or Embrace on the Beach (The Linde Frieze), 1904.

Sold in 2021: £16,284,000 ≈ $22,341,517 Courtesy Sotheby's

165

W E LC O M I N G A N E W WAV E OF COLLECTORS

Masterworks, an online platform that allows individuals to invest in bluechip artwork, has also met newfound success as the art world moves online. Catering to a larger market of individual, smaller investors, rather than institutional investors or ultra-high-net-worth collectors, Masterworks is much like Robinhood

166

for art collectors. It is paving the way for understanding what a digital art market can look like.

In doing so, Masterworks is capturing a millennial collector audience whose buying power will only grow with time and age. According to a recent ART31 survey, 67.8% of young people considered the arts important, but cost and accessibility deterred them from becoming collectors.

Pablo Picasso – Femme Dans un Fauteuil, 1881-1973.

Sold in 2020: $29,557,500 Courtesy Christie's Images LTD. 2021

Sanyu – Fleurs Dans Un Pot Bleu Et Blanc, 1895-1966.

Sold in 2020: HK$187,055,000

≈ $24,082,583

Courtesy Sotheby's

167

Yayoi Kusama – Pumpkin, 1993.

Courtesy Masterworks

168

169

170

INSIGHT Simon de Pury

Art Auctioneer, Dealer, & Curator

“ The top auction houses held triple the number of virtual auctions in 2020 compared to 2019.”

Another trend to note is the recent 2021 arrival of NFTs, or non-fungible tokens, brought to fame by a Christie’s-brokered $69 million sale. The piece, Everydays: The First 5000 Days, a digital collage by artist Mike Winkelmann, also known as Beeple, was sold on Makersplace, an NFT art trading marketplace. NFTs are a blockchain token that can represent or back any asset and can be purchased with cryptocurrency Ether on a marketplace.

This year, many of those backed assets have been digital art. While an NFT collector technically does not purchase any copyrights to the art itself, they simply own the blockchain token that backs it. That token, or NFT, is rendered valuable because it is issued as an exclusive limited edition by the artist him or herself. For the collector, the value and incentive of owning an NFT is the same buy-low-sell-high strategy used in stock trading.

THE PROSPERITY REPORT | VOL 2

Mariya Golovina, Masterworks’ Director of Acquisitions, says Masterworks has successfully “addressed the issue of access to the art market by lowering the financial threshold,” so that more admirers can participate.

Wayne Thiebaud – Four Pinball Machines, 1920.

Sold in 2020: $19,135,000 Courtesy Christie's Images LTD. 2021

171

INSIGHT Artsy Gallery Insights 2021 Artsy

BESPOKE LUXURY MAGAZINE

Between 2019 and 2020, the number of small galleries increased by 90%, while the number of medium galleries decreased by 29%.

Change in Gallery Size 2019-2020

SMALL GALLERIES (1 Employee)

2019

22%

2020

42%

MEDIUM GALLERIES (2-4 Employees)

2019

2020

62%

44%

* Data curated by Artsy’s Gallery Insights 2021 Report.

Between a growing global collector base, increased accessibility, and brand-new investment platforms, the art world is abundant with opportunity. Over the

172

next decade, a new generation of gallerists, sellers, artists, and collectors will take reign, fundamentally transforming the industry for good.

Joan Mitchell – Untitled, 1953-1954.

Sold in 2020: $11,297,500 Courtesy Phillips

173

Sandro Botticelli – Portrait of a Young Man Holding a Roundel, 1480.

Sold in 2021: $92,184,000 Courtesy Sotheby’s

174

203.552.9700 | LINDARUDERMAN.COM | 877.730.8311 NEW YORK | GREENWICH | PALM BEACH

I N V I TAT I O N

Unlock the Bespoke Experience ®

Bespoke invites you to experience our turnkey approach to ultra-luxury marketing.

There's more to see...

BESPOKELUXURYMARKETING.COM

LAMBORGHINI IN THE HAMPTONS — AN EXHILARATING SYNERGY DISCOVER THE EXPERIENCE THAT WILL SHIFT THE DRIVING CULTURE ON THE EAST END— FOREVER. Lamborghini has partnered with Bespoke to offer an exclusive opportunity for those who demand the very best in automotive precision, power, and innovation. Italy’s most iconic lineup of luxury vehicles has landed in the Hamptons and will change the driving culture here forever. Aptly chosen because it exudes the same elements of beauty and sophisticated design inherent to the Lamborghini name, the Hamptons is the ultimate backdrop for discovering the perfect vehicle for your lifestyle From Meadow to Further Lane, experience the exhilarating synergy of driving your Lamborghini of choice in the most exquisite of locales—with Lamborghini in the Hamptons, there has never been a better time to drive.

2

BESPOKE LUXURY MAGAZINE

®

LAMBORGHINI.COM Drive@BespokeLuxuryMarketing.com 20 / 20 VISION | VOL 1

3

BORN IN LE BRASSUS

RAISED AROUND THE WORLD