Adele has taken out a massive $37.7million mortgage on the luxury Los Angeles mansion she bought from Sylvester Stallone for $58million in February, DailyMail.com can reveal.
The eight-bedroom, 12-bathroom home in the exclusive Beverly Park area is saddled with a massive home loan for the next 30 years, according to the deed of trust.
It is estimated Adele is paying $227,000 per month – including property taxes and an assumed five percent interest rate – which is a big sum even for the singer, whose net worth is estimated at $183million.
The 34-year-old may now be more eager than ever to get her postponed Las Vegas show up and running in November at The Colosseum, in Caesar’s Palace. She will reportedly be earn $1million per show – which would no doubt help with those hefty payments.
Adele purchased a mansion in the exclusive Beverly Park neighborhood of Los Angeles in February from Sylvester Stallone for $58million.DailyMail.com can reveal Adele – whose next worth is $183million – took out a massive $37.7million mortgage to pay for it
In May, Adele confirmed she and boyfriend Rich Paul moved in together after a year of dating by sharing a snap of them holding the keys to the new castle just outside the home
The eight-bedroom, 12-bathroom home in the exclusive Beverly Park area is saddled with a massive home loan for the next 30 years, according to the deed of trust
It’s estimated Adele is paying $227,000 per month – including high property taxes for the celeb enclave and a five percent interest rate – which is a big sum even for the singer, whose net worth is $183million
The home purchase was Adele’s fourth in Los Angeles after buying three properties next to each other in the exclusive Beverly Hills suburb of Hidden Valley. The 18,587 square-foot home was designed by Richard Landry and boasts eight bedroom and 12 bathrooms
The 34-year-old recently announced that her postponed Las Vegas residency will finally go ahead in November, netting her a reported $1million per show
The loan for her latest home was provided by City National Bank, which prides itself as the ‘Bank to the Stars,’ due to its close ties to Hollywood. Melissa Morton is named as the trustee. Morton is managing director and partner at Gelfand, Rennert & Feldman, Adele’s business management company
Why the mega-rich take out a home loan – rather than pay outright
It often pays the super-rich to take out a mortgage on a mega home instead of paying for it outright, a celebrity wealth expert told DailyMail.com.
‘You might think if you had so much money, why would you have a loan?’ said Robert Pagliarini, based in Irvine, California.
‘It usually comes down to one reason. Typically the investor feels that what they are paying on the mortgage is less than what they can do with that money by investing it.
‘It also depends on the time frame. If you look back in history, chances are that if you invested that money in a diversified portfolio over the course of a 30-year loan then you would very likely do better than the rate you are paying.
‘If you are really, really wealthy, that’s the game you play.’
Pagliarini – who handles celebrities, ‘sudden wealth’ people like big lottery winners, and retirees through his company Pacifica Wealth – said tax breaks don’t often factor in super-rich home purchases, except if it is tied to a business.
‘At the very wealthy level, there aren’t really any tax advantages to having a mortgage. You can deduct against your tax first million dollars of home indebtedness. But at a very high level, that is not going to do anything for a person’s tax life.
‘The only other area of benefit would be if the property was being used in conjunction with a business. In that case, any sort of expense, whether it is mortgage interest or property taxes or otherwise, then it is a business expense. And you can use that to offset any business income.’
– Greg Woodfield
In May, Adele confirmed she and boyfriend Rich Paul moved in together after a year of dating by sharing a snap of them outside her new home.
The singer shared a series of loved-up snaps of the couple, including one where they both held up the keys to their abode.
In January, Adele tearfully told her fans in a video that her highly-anticipated Las Vegas residency was canceled just 24 hours before she was set to hit the stage at Caesar’s Palace.
But just last month, she announced its return and she told her fans she was desperate to make the concerts happen.
‘Words can’t explain how ecstatic I am to finally be able to announce these rescheduled shows. I truly was heartbroken to have to cancel them,’ she said.
‘But after what feels like an eternity of figuring out logistics for the show that I really want to deliver, and knowing it can happen, I’m more excited than ever!’
Her show is expected to run from November 18 until February 24, 2023.
The home purchase was Adele’s fourth in Los Angeles after buying three properties next to each other in the exclusive Beverly Hills suburb of Hidden Valley, also home to movie stars Jennifer Lawrence, Penelope Cruz and Nicole Kidman.
The loan for her latest home was provided by City National Bank, which prides itself as the ‘Bank to the Stars.’ According to its website, CNB, a subsidiary of the Royal Bank of Canada, offers ‘super jumbo loans’ with discounted deals for those have a ‘special relationship’ with the bank.
Its HQ is located in Los Angeles and CNB gained a reputation as the celebs’ preferred bank after it worked with the FBI to advance $240,000 ransom money to Frank Sinatra when his son Frank Jr was kidnapped in 1963, who was released unscathed two days later.
Since then, hundreds of movie and music industry players have used its services.
Last October, Adele told Vogue that she couldn’t afford real estate in her hometown of London, saying: ‘The kind of house I have in LA I could never afford in London. Ever.’
Adding that when she lived in London, most of her time was spent ‘in a car or inside a building,’ and that she wanted to be somewhere with ‘fresh air and somewhere where I could see the sky.’
Ironically, according to the title deeds on her two next-door terraced properties in Kensington, they don’t even have a mortgage and were paid for outright.
Sylvester Stallone had been working hard to sell the mega mansion that he purchased in the ’90s, and initially listed the beautiful home for $110million, but there were no takers. He cut the price down to $85million, finally selling it to Adele for $58million
The property is massive with a total of eight bedrooms and nine bathroom on a whopping 3.5 acres. The home is located in the same neighborhood where Lisa Vanderpump and Rod Stewart used to reside
The home comes complete with a comfortable screening room that can seat 10 people easily; off to the side is a fireplace
While the neighborhood is behind gates, the property itself is also gated for maximum privacy and security
Sly Stallone’s former property is now owned by The BPT Trust, with Melissa Morton named as the trustee
The couple appear smitten with one another and couldn’t contain their smiles as they sat courtside at an NBA game in May
The star bought one pad for $6.9million in 2012 and a year later purchased the adjoining one for $6.57million.
It appears that the mortgage she’s been saddled with in Los Angeles is much higher than a lot of the properties offered in London.
Sly Stallone’s former property is now owned by The BPT Trust, with Melissa Morton named as the trustee.
Morton is managing director and partner at Gelfand, Rennert & Feldman, Adele’s business management company.
Morton is also named as the co-purchaser of the property Adele bought from Nicole Richie in May last year for $9.95 million. So far in the US, Adele has been buying up property using trusts linked to Gelfand, Rennert & Feldman.
Adele’s other three Los Angeles mansions in celeb enclave Hidden Valley
As well as her home in London, Adele also has three mansions situated within another gated community in the Hidden Valley in Los Angeles
Impressive! Adele had previously monopolized her Beverly Hills suburb by splashing the cash on three properties in another gated community
– Purchased for $8.4million in 2016
– Four bedrooms, six bathrooms
– Purchased for $10.65million in 2019
– Five-bedrooms, six-bathrooms, 6,045 square feet and sits on nearly an acre
– Purchased for $10million in 2021
– Four-bedroom, four-bathroom, with pool and basketball court
Richie’s former place is situated next-door to the first home Adele bought in 2016 for $9.5million, which has four-bedrooms, six-bathrooms, a pool and summerhouse.
After splitting up from ex-husband Simon Konecki in April 2019, she bought the six-bed property opposite for $10.65 million, which he is reportedly living in to be close to his former spouse and their son Angelo.