Monday, October 3, 2016

"Panic, Anxiety Spark Rush to Build Luxury Bunkers for L.A.'s Superrich"

From the Hollywood Reporter, Sept. 28:

Oscar winners, sports stars and Bill Gates are building lavish bunkers — with amenities ranging from a swimming pool to a bowling alley — as global anxiety fuels sales and owners "could be the next Adam and Eve."
Given the increased frequency of terrorist bombings and mass shootings and an under-lying sense of havoc fed by divisive election politics, it's no surprise that home security is going over the top and hitting luxurious new heights. Or, rather, new lows, as the average depth of a new breed of safe haven that occupies thousands of square feet is 10 feet under or more. Those who can afford to pull out all the stops for so-called self-preservation are doing so — in a fashion that goes way beyond the submerged corrugated metal units adopted by reality show "preppers" — to prepare for anything from nuclear bombings to drastic climate-change events. Gary Lynch, GM at Rising S Bunkers, a Texas-based company that specializes in underground bunkers and services scores of Los Angeles residences, says that sales at the most upscale end of the market — mainly to actors, pro athletes and politicians (who require signed NDAs) — have increased 700 percent this year compared with 2015, and overall sales have risen 150 percent. "Any time there is a turbulent political landscape, we see a spike in our sales. Given this election is as turbulent as it is, we are gearing up for an even bigger spike," says marketing director Brad Roberson of sales of bunkers that start at $39,000 and can run $8.35 million or more (FYI, a 12-stall horse shelter is $98,500).

Adds Mike Peters, owner of Utah-based Ultimate Bunker, which builds high-end versions in California, Texas and Minnesota: "People are going for luxury [to] live underground because they see the future is going to be rough. Everyone I've talked to thinks we are doomed, no matter who is elected." Robert Vicino, founder of Del Mar, Calif.-based Vivos, which constructs upscale community bunkers in Indiana (he believes coastal flooding scenarios preclude bunkers being safely built west of the Rockies), says, "Bill Gates has huge shelters under every one of his homes, in Rancho Santa Fe and Washington. His head of security visited with us a couple years ago, and for these multibillionaires, a few million is nothing. It's really just the newest form of insurance."
A hidden door by Creative Home Engineering leads to a secret passageway 
that connects to an underground bunker.
Rising S Bunkers installed a 37-room, 9,000-square-foot complex in Napa Valley for an Academy Award-winning client that rang in at $10.28 million, with a bowling alley, sauna, jacuzzi, shooting range and an ultra-large home theater. Swimming pools, greenhouses, game rooms and gyms are other amenities offered. This year, on another Napa Valley property, the company constructed a $9 million, 7,600-square-foot compound with horse stables and accommodations for 12, along with four escape tunnels leading to outlets on the estate, multiple hidden rooms — in case "you let someone in whom you do not fully trust," says Lynch — and an aboveground safe house "disguised as a horse barn." The company also is designing a $3 million bunker for "a major sports figure from Southern California."

The company's best-selling bunkers for L.A. are 10 by 50 feet, start at $112,000 and have their own power sources, water supplies and air-filtration systems: "These complexes accommodate families of four or five and are self-sustaining," says Roberson, adding: "You can pretty much put a palace underground anywhere there is physically enough room." Regardless, Ellia Thompson, chair of land use practice at Ervin Cohen & Jessup in Beverly Hills, notes that zoning guidelines vary throughout L.A., so one should check with the city department of building and safety about permits: "A special permit may be required if you are digging out more dirt than certain basement quantities."...MORE
HT: naked capitalism

What to Get the Survivalist Who Has Everything?
You probably have to deal with this question every year.
[who on earth do you think your readership is? -ed]
Zeitgeist: Survivalist Reality Show Winner to Get Own Bunker (as survival condos sell out)
Surviving in Your Doomsday Bunker with Portable Nuclear Power to Spare
Carbon: "Piaget Emperador Temple Diamonds Watch - $3.5 Million"
If you have a more ominous bent, trade three of your new watches for:
$10 Million Doomsday Bunker to Survive the Apocalypse

"The Latest High-End Real Estate Amenity? The Luxury Safe Room"
The Economist: "When civilisation collapses, will you be ready?"
"The Paranoid World of London's Super-rich: DNA-laced Security Mist and Superyacht Getaway Submarines"
"Mace and Vomit: The Latest in Anti-Pirate Tech"
"A New Investment Strategy: Preparing for End Times"
This is not new.
Here at Climateer world headquarters
Associated Press
HT on the pic: an old MarketBeat post.

we have been  on the doom-beat for years although we don't link to Rosenberg or Roubini very much.*
In fact, seeing their names together (R,R) always reminds me of The Simpsons, episode 7GO2, Bart the Genius:
Teacher:  So y = r cubed over 3. And if you determine the rate of change in this curve correctly, I think you'll be pleasantly surprised.
[The class laughs except for Bart who appears confused.]
Teacher:  Don't you get it, Bart? Derivative dy = 3 r squared dr over 3, or r squared dr, or r dr r.
[you have lost your mind -ed]

I'm also reminded of "Portfolio Insurance" ca. 1987.
From DealBook:
Investment professionals have a new pitch: The sky could soon be falling....