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Michael Jordan’s $15M mansion sat on the market for 12 years — now he has a buyer. 3 real estate plays with fast returns

Jing Pan

September 19, 2024 6 min read

Michael Jordan is a powerhouse both on the basketball court and in the business world.

He clinched six NBA championships with the Chicago Bulls, and his Jordan brand generated a staggering $7 billion in revenue for Nike in fiscal 2024.

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However, when it came to selling his iconic Chicago mansion, Jordan faced considerable challenges in finding a buyer.

The mansion, located in the suburbs of Chicago, is set on a seven-acre estate featuring nine bedrooms and 19 bathrooms. Initially placed on the market with a $29 million price tag in 2012, it has seen a series of price reductions over the years. The latest listing shows the price currently stands at $14.855 million, a steep drop from its original asking price.

On Sunday, the listing’s status was changed to contingent, indicating that an offer had been accepted and the home was under contract. The sale price remains undisclosed.

According to a Wall Street Journal report earlier this month, Jordan was resolute in maintaining his asking price.

Listing agent Katherine Malkin highlighted Jordan’s steadfast approach: “I think most of the people would have gotten anxious at some point and said, you know, I think I’ll just reduce it and reduce it and reduce it.”

Malkin further noted that Jordan’s determination not to undervalue the property led him to withdraw from a 2013 auction, fearing it would not fetch an amount reflective of its worth.

‘It’s part of the draw’

Jordan’s property boasts a wealth of amenities including a basketball gymnasium, a locker room, a trophy room, a circular infinity pool, a tennis court, a cigar room and a putting green.

Visitors can recognize the property from a distance, thanks to the bespoke iron gate adorned with Jordan’s iconic jersey number, 23.

Throughout the estate, Jordan’s legacy is palpable. The floors of the indoor basketball court are emblazoned with his name and those of his children — Marcus, Jeffrey and Jasmine.

Meanwhile, Jordan’s famous “Jumpman” silhouette features on flags at the putting green and lights up the home theater.

While the property’s personalized features might deter some potential buyers, depersonalizing was not considered an option. Malkin emphasized the uniqueness as a key selling point.

“We haven’t really talked about that because it’s part of the draw. We don’t look at that as being a hindrance,” she explained.

However, personalized celebrity homes often present sales challenges. The Wall Street Journal pointed out that such homes can be difficult to sell. For instance, baseball star Derek Jeter’s highly customized lakefront property with turrets and a Statue of Liberty replica lingered on the market for six years before selling for $5.1 million — a nearly $10 million reduction from its original asking price.

Similarly, the Goodfellas-themed Jersey Shore home of movie star Joe Pesci took three years to sell.

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Millions spent

Jordan’s lavish estate was meticulously crafted from the ground up. He acquired the land in 1991, and construction of the mansion ran from 1993 to 1995, followed by significant renovations in 2009.

According to Malkin, approximately $50 million was invested in building the estate.

This year, Jordan continued to invest in the property’s upkeep, including installing a new roof. Property records cited by the Wall Street Journal reveal that since listing the home, Jordan has paid over $1 million in property taxes.

Malkin quipped about Jordan’s expenditures, “Why? Because he can.”

Given the high costs and the property’s final listing price, the financial return from the house might not seem impressive, especially in comparison to the national rise in property values over the years. However, for Jordan, whose net worth Forbes estimates at $3.2 billion, the cost of maintaining such a property could be seen merely as a minor financial detail.

Becoming a real estate mogul

Investing in real estate can be financially demanding and involves ongoing responsibilities like property taxes, insurance and maintenance. Beyond financial considerations, landlords may also face challenges with difficult tenants and the hassle of collecting overdue rent payments.

However, these days, there are plenty of ways to enter the real estate market without the hassles associated with traditional property ownership.

Real estate investment trusts (REITs). REITs own income-producing real estate like apartment buildings, shopping centers and office towers. They offer a way to invest in real estate without the need to buy or manage properties directly, as they distribute a portion of their rental income to shareholders in the form of dividends. It’s easy to invest in REITs because many are publicly traded.

Exchange-traded funds (ETFs). If you don’t want to pick individual REITs, you can gain broad exposure to the sector through ETFs. You can think of an ETF as a basket of stocks, with some specifically targeting the real estate sector. Options such as the Vanguard Real Estate ETF (VNQ) and the Real Estate Select Sector SPDR Fund (XLRE) could provide a starting point for further research.

Crowdfunding platforms. Crowdfunding platforms pool together funds from multiple investors and allow you to own a percentage of physical real estate — from rental properties and commercial buildings to parcels of land. They make real estate investing more accessible to the general public by simplifying the process and lowering the barriers to entry. Some platforms now offer opportunities to invest in high-quality rental properties starting with as little as $100.