Rosalie Murphy

The Desert Sun

Palm Springs' Elrod House — the John Lautner-designed property famous for its appearance in the James Bond film Diamonds Are Forever — is back on the market after a drawn-out legal battle and its already generating interest at a list price of $8 million.

The Elrod House isn't alone. Three other Southridge properties — a house that once belonged to Steve McQueen, a 1992 home known as the Boat House and a vacant one-acre lot — are also up for sale. A second vacant lot went into escrow on Wednesday, listing agent John Nelson said.

The homes have not been open to the public since a Modernism Week party visited the Elrod House in 2011, and for local enthusiasts, remain mysterious. The good news is, the 8,900 square foot house appeared to be in good shape on Thursday. Nelson said he's already received inquiries, some serious and some simply curious.

"People have forgotten about them, it seems," said Jim Schwietz, a longtime Palm Springs real estate agent now with Bennion Deville Homes. Still, he said, the Elrod House "is one of those one-of-a-kind Palm Springs properties."

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More than a decade ago, real estate investor Michael Kilroy picked up the Elrod House, the Steve McQueen house and the Boat House, spending more than $11 million on the collection. But then the investor fell on hard times, court documents show.

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In 2012, United Kingdom-based lender Lloyds Bank sued Kilroy, alleging that he had stopped paying his mortgages and owed more than $1.8 million on four properties. The Southridge Property Owners Association of Palm Springs also sued Kilroy, claiming he owed nearly $150,000 in unpaid fees, according to court documents.

In April 2015, Kilroy filed a voluntary petition for Chapter 11 bankruptcy. According to court documents, he and Lloyds Bank agreed in November 2015 that Kilroy had until the end of April 2016 to sell the properties — otherwise their deeds would be transferred to the bank. Court filings show that Kilroy hired local brokerage HK Lane to market the homes, but was unsuccessful.

Last week, Nelson Moe Properties, a local real estate team affiliated with Coldwell Banker, listed Kilroy's three Southridge homes and two vacant lots adjacent to them for sale.

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The Elrod House was designed by Modernist architect John Lautner for Arthur Elrod, an interior designer, and completed in 1968. Most recognizable is its circular living area with a cone-shaped roof, which features nine triangular wood panels and triangular clerestory windows that pour light into the room. The room is surrounded by retractable walls of curved glass, which open to north- and west-facing views of the valley. Nelson Moe Properties has listed it for $8 million.

In the Elrod House, "there's a lot of interest," Nelson said. "We've got two people who are really circling the Elrod House. It's a good value."

The Steve McQueen House was a 1964 project of Palm Springs architect Hugh Kaptur. It's a classic mid-century post-and-beam house, with floor-to-ceiling windows and a cantilevered roof that shades indoor rooms from the sun, and it's on the market for $2.5 million.

The Boat House, designed by Michael P. Johnson and built in 1989, received its nickname for its resemblance to a ship's hull. Nelson described the house, listed for $1.95 million, as "pure sizzle."

Two vacant lots are also for sale — one behind the Boat House asks $560,000 and another, next to the Steve McQueen house, is listed for $950,000. The former lot is already in escrow, Nelson said.

Rosalie Murphy covers real estate and business at The Desert Sun. Reach her at rosalie.murphy@desertsun.com or on Twitter @rozmurph.