Developer Buys Grayhall; Once Home of Stars
Grayhall, the Beverly Hills mansion that was home to screen stars Douglas Fairbanks Sr. and George Hamilton and was finally owned by one-time international financier Bernard (Bernie) Cornfeld, has been bought by a real estate developer just before a scheduled foreclosure sale, the buyer and his attorney said Friday.
Steven M. Powers, a 45-year-old bachelor described as a developer with hotels in Florida and Hawaii, said he plans to live in the 37-room, 13,894-square-foot house after spending $420,000 refurbishing it.
He said he intends to do a lot of entertaining in the house, which is connected by an underground tunnel to Pickfair, the famous home of Fairbanks and Mary Pickford that is now the property of Los Angeles Lakers’ owner Jerry Buss.
“I told Jerry that I’m going to open up the tunnel, and we can have some great parties,” Powers said.
Rented by Fairbanks
Grayhall, at 1100 Carolyn Way, was built in 1916 for Silsby Spaulding, the first mayor of Beverly Hills. It was rented by silent screen star Fairbanks before he married Mary Pickford, and was owned later by actor Hamilton.
Cornfeld, whose Investors Overseas Services financial empire collapsed in the 1970s, has been spending most his time in Europe where he operates such ventures as a vitamin business. When he lived in Grayhall, it was the scene of many pool-side parties featuring beautiful young women and jet-set guests.
Grayhall Inc., a corporation headed by Cornfeld, had been asking $9 million for the home, but filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code last October, reportedly after another buyer failed to obtain financing to complete a deal for the property.
Brian Oxman, Powers’ attorney, said Powers “showed up with a cashier’s check in hand” to clear up overdue debts on the property “on the doorstep of the foreclosure hearing Thursday morning.”
Attorney Won’t Comment
Grayhall Inc.’s attorney, David Rudnick, would not comment. Attorneys for Progressive Savings, the mortgage holder, were unavailable.
Powers declined to say how much he paid for Grayhall, but said he traded another house in the Beverly Hills area and some cash for it in a complicated transaction that involved purchase of stock in the company that owned the mansion.
Oxman said title will remain in the name of Grayhall Inc., with Powers holding controlling interest. Powers said Cornfeld will maintain a 25% stake in whatever profits are made when the property is eventually resold.
