A legal dispute has emerged over the sale of a luxurious mansion on Miami's exclusive Indian Creek island, nicknamed "billionaire bunker." Leo Kryss, a Brazilian businessman, is suing Douglas Elliman, a prominent American brokerage, for allegedly concealing the identity of the buyer, Jeff Bezos, during a high-profile property transaction.
The controversy centers around a $79 million sale of a seven-bedroom mansion, which Kryss initially listed for $85 million. The seller claims he was persuaded to reduce the price by $6 million without knowing that the world's second-wealthiest individual was the prospective buyer. Kryss asserts that this information would have significantly influenced his decision-making process regarding the final sale price.
Indian Creek, the location of the disputed property, is a man-made island in Miami's Biscayne Bay, known for its exclusivity and wealthy residents. The island, incorporated in 1939, boasts only 41 residential home sites surrounding the Indian Creek Country Club and golf course. As of 2012, it had a mere 86 residents and was protected by a private police force, earning it the moniker "America's Most Exclusive Municipality."
The legal complaint, filed in a Miami court, alleges that Douglas Elliman, which represented both parties in the transaction, failed to disclose Bezos' involvement. Kryss' lawyer, Dana Clayton, stated, "Douglas Elliman failed to fulfill [its] duties to our client. [It] knew or should have known who the ultimate beneficial purchaser was and misrepresented that very important fact to our client."
According to the lawsuit, Kryss became suspicious when an offer came shortly after Bezos purchased a neighboring property for $68 million. However, a Douglas Elliman employee allegedly assured Kryss that Bezos was not the buyer and that their client would not pay more than $79 million for the property.
The mansion in question boasts impressive features, including a wine cellar, library, and theatre. It is situated on an island that has been home to various celebrities, business leaders, and sports figures. As of 2019, the median home value on Indian Creek Island exceeded $21 million, highlighting its status as a premier location for ultra-high-net-worth individuals.
"Knowing about Mr Bezos's involvement would have been highly material to his negotiations and his decision on the ultimate sales price."
It's worth noting that celebrity property purchases often involve concealing the buyer's identity, typically to protect their privacy. This is commonly achieved by purchasing through trusts or other legal entities. In this case, Kryss later discovered that the property was sold to an entity linked to Bezos.
The island's appeal to the wealthy is further enhanced by its security measures, which include a 24/7 armed marine patrol. Additionally, Indian Creek is considered one of the most tax-friendly locations for the ultra-wealthy in the United States, adding to its allure for high-profile residents.
A hearing for this case is scheduled for October 11, 2024. As of now, both listing agents have denied having knowledge of the buyer's identity, according to the legal documents. The outcome of this lawsuit could have significant implications for real estate transactions involving high-profile buyers and the responsibilities of estate agents in such deals.