As any seasoned dealer, collector or observer will tell you, there’s an organic connection between art and real estate. Many Contemporary collectors are commercial real estate developers or investors, many collectors become introduced to art through a significant real estate purchase and the economics of art and real estate are similar in their carrying costs and sensitivity to interest rates.
To take this all a step further, there’s a story on Curbed, the real estate blog, about the sale of Bernard Goldberg’s Hamptons home with an asking price of $40m. Compare that to the proceeds of Goldberg’s gallery stock which fetched a fraction of that price in
The estate currently belongs to ex-art dealer Bernard Goldberg. Goldberg recently announced his departure from the art scene, which was accompanied by a massive Christie’s auction “estimated to fetch as much as $10 million.” […] Goldberg also shuttered his East Hampton gallery. Looks like Lily Pond is destined for a new legion of high-rollers.