A hilltop Newport Coast mansion — so new that the designer was still adding the finishing touches as listing photos were being taken — awaits its first tenant for $250,000 a month.

Perched atop a nearly two-thirds-acre lot in guard-gated Crystal Cove, 7 Clear Water is a nearly 13,000-square-foot Mediterranean-style home boasting a circular wine cellar, state-of-the-art theater and spa with a sauna, steam room and cold plunge.

According to the MLS, it’s one of the most expensive lease listings in Orange County.

A search on Homes.com reveals 11 coastal mansions for rent in Newport Beach, Laguna Beach and Dana Point for $100,000 a month or more. Only one, 7 Clear Water, has never been lived in.

“You don’t typically see these brand-new mansions, no matter what market,” said listing agent Josh Altman of Douglas Elliman Real Estate, whose firm is promoting the mansion rental worldwide. “Whether it’s L.A. or Newport, this is as topnotch as you will see: the best of the best.”

Backed by coastal views, this three-level home has seven bedrooms and 11 bathrooms. The dining room has a fully stocked wine wall. In the living room, a 30-foot retractable glass pocket slider extends indoors out to the backyard oasis with double pools, a barbecue center, an oversized fireplace and an 80-inch screen television. At the basement level, there is a fully furnished entertainment area with a bar, lounge, and billiards room.

High-end rentals are a small part of OC’s luxury real estate market.

According to Steven Thomas, chief economist at Reports on Housing, the data shows only one closed lease listing in 2023 at or above $100,000. That property sought $350,000 a month but leased for $150,000 a month. No such rental contracts closed between 2020 and 2022. And in 2019, only one went for $195,000 a month.

Of course, not all mansion rentals are listed on the open market or registered in public records, so their numbers are difficult to track.

Many lease deals happen under the radar.

Consider New York hedge fund billionaire Joseph Edelman and his wife, Susan Lebovitz-Edelman. The couple set an all-time OC record when they quietly purchased a $70 million estate in Laguna Beach’s guarded Abalone Point in November 2021 after reportedly renting another home in the area.

“A lot of these heavy hitters like to rent because it gives them an opportunity to just jump out of something after a year once they know where they want to be, and then put down roots,” Altman said. “Any major tech executive, Hollywood heavyweight, hedge fund or oil person— these are some of the types of people who are looking to test the waters.”

Even Altman and his wife, Heather, rented a home in Newport Beach for a couple of years to get a feel for the area. In March 2023, they bought a waterfront property in an off-market deal for $8.7 million after their attempts to buy their rental property failed.

“Are you ready for this? I made nine offers to buy the house, and every 60 days my offer went up because the market continued to go up,” Altman said. “Eventually, because I became friends with my landlord, he was like, ‘Josh, I love you, man, but I don’t want to ever sell this.’ “

As it happens, neither does Altman’s client who built the never-before-lived-in house in Crystal Cove.

Building a house can take several years of planning, obtaining permits and going through the development process. Because of that, many people who bought lots in high-end communities like Crystal Cove paid significantly less than they would in today’s market.

Public records show Baja Washington LLC bought 7 Clear Water — a vacant lot with stunning coastal views from Newport Harbor to Palos Verdes — for $7.115 million in November 2016.

According to Altman, the owner was unaware of the home’s potential market value at the time of construction.

“If it were for sale, it would easily be a record-breaking sale — and that’s coming from us, who broke the record (in 2022) with a $55 million sale in Crystal Cove,” he said. Altman was referring to Heather Dubrow’s Newport Coast home dubbed “Chateau Dubrow,” which sold in an off-market deal. “This would shatter that record, in my opinion.”

Instead, the lease listing seeks what Altman estimates is the monthly maintenance cost of a $70 million home. The owner, who declined to comment, is also willing to consider a short-term lease, such as three months in the summer.

Thomas of Reports on Housing noted the data shows many mansions owners are open to renting.

“What I’ve noticed in looking at all of the high-cost luxury leases is that in order to get those high amounts, many are actually open to renting it out for a month or two on a short-term rental basis,” Thomas said. “A lot of these are furnished, which means they probably rent these out and then come back and live in them.”

Not just anybody can take up the lease.

“This is a big-time property, so the tenant is just as important as the money,” Altman said. “The type of person who would rent a house like this is going to easily have a worth of more than $100 million.”

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