Forget the Pool or Even the Living Room—‘Our Closet Time Is Precious’
Some homeowners are taking the coziness and intimacy of the primary suite’s walk-in wardrobe to the next level and transforming it from functional storage into the home’s centrepiece
By SHIVANI VORA
Mon, Apr 15, 2024 8:58am 4min
The concept of the walk-in closet is being redefined.
WINDERMERE REAL ESTATE
A room you might not expect comes to mind when home seller Karen Haines reflects on fond memories at her Hollywood Regency-style house in Palm Springs, California: her bedroom closet.
“Forget the great room, swimming pool or hot tub. All the action in the house happens in the closet. It’s where everyone wants to be,” said Haines of the enormous space, which is decked out with white tones, mirrors, marble and gold finishes, and has double sinks with bird-shaped faucets.
Haines and her husband, Chris, are selling the house, designed by acclaimed architect Robert Marx and on the market with Douglas Elliman for $5.2 million. The couple, both entrepreneurs in the music industry, usually keep classic rock ‘n’ roll playing in the closet all day, she said.
“My daughter and I try on clothes in there, and Chris and I drink coffee in the morning and cocktails come evening,” she said.
For most homeowners, closets are merely functional—that is, a place to hold clothes, accessories and other items that they turn to for everyday wear. Some, however, are taking the coziness and intimacy of the primary suite’s walk-in closet to the next level and turning it into the home’s prized space. It’s become a place where couples can connect at the end of a hectic day or a lounge where owners socialise with friends, enjoy a morning coffee, and, yes, even imbibe with cocktails and wine.
Chris Lim, a real estate agent and former president of Christie’s International Real Estate, said that he is witnessing a redefining of the concept of walk-in closets.
“With the inclusion of features like bar sinks, lounge seating, spacious islands and glass displays and expanded vanity areas, walk-in closets now offer a retreat for morning rituals and post-day relaxation,” he said. “They’ve become hubs of activity and connection in multimillion-dollar homes.”
Part of the trend, he said, is the growing number of fashion and social media influencers, who often use their bedroom closets as their offices or filming space.
When it comes to showpiece closets, Brazilian design firm Ornare is a leading name and charges between $30,000 and close to $1 million for its services.
Claudio Faria, the CEO of Ornare Miami, said that when he opened his business in 2007, closets were an afterthought with homeowners investing their money in zhuzhing up public-facing spaces such as kitchens and family rooms. Now, he said, closets are dominating home design—his business has grown 50% annually for the last five years as a result.
“Closets have become more important because, in the way that wealthy people collect cars and art, they’re collecting clothes, and closets are the venues to show them off,” Faria said. They’re also a unique area to use in your home because of their intimacy and become talking points.”
Ana Paula Siebert Justus is a client and tapped Ornare to bring her vision of a glamorous closet to life. Justus, a fashion influencer, and her husband, Roberto Justus, an entrepreneur, own a five-bedroom condominium in Sunny Isles, Florida. The large wardrobe in their bedroom is awash in green hues, wood and leather. Backlighting features throughout, and there are sections for handbags and clothes plus a hat rack and a vanity with a chair.
“I spend a lot of time in my closet shooting content, so it needs to be in photograph-ready shape,” she said. “It has no door, and one of my favorite ways to connect with Roberto is to catch up as I’m getting dressed for the day or evening events. Our closet time is precious.”
Tina Trahan, a philanthropist and art collector, lives in Los Angeles’s Studio City neighbourhood in a 5,100-square-foot home that was the exterior for the home on “The Brady Bunch” TV series. She shared similar sentiments about her closet. She has repurposed one of the bedrooms into the space and has outfitted it with double-height rolling racks, a three-way mirror, a sofa, a Miele coffee machine and a fridge stocked with drinks including White Claws—her beverage of choice.
Trahan said that she frequently entertains girlfriends, and they love heading to her closet to drink tequila and wine and catch up.
“We end up ordering sushi and eating it there. My closet is 100% our favourite place to hang out,” she said.
Other examples of these double-duty flashy closets abound.
Real estate agent Katrina Barrett of Christie’s International Real Estate Walt Danley | Local Luxury is overseeing the marketing and sale of a $40 million home in Paradise Valley, Arizona. The centrepiece of its primary suite is an expansive closet with seating, a steaming area, hidden panels to store valuables and a secret door leading to a sports barn with a pickleball court and golf simulator.
In another example, Susan Archer is selling her home in Issaquah, Washington, near Seattle, for more than $6 million through Windermere Real Estate/Luxury Portfolio International. She described the property’s primary bedroom’s closet as “a haven for creating memorable moments with friends and family.”
The white-painted space has marble and cream walls and features backlighting, a display case that’s common in upscale boutiques, a washer and dryer, a wet bar, an island and seating.
“Many of my girlfriends and I have gathered around the island, their excitement palpable as they admire my collection. With champagne flutes in hand, the atmosphere is lively and carefree,” Archer said. “Beyond the soirées with friends, my closet holds a special place for precious moments with my daughter. As she grows, her interest in fashion blossoms, and my closet becomes a treasure trove of inspiration for her budding style.”
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This Company Won Big With Bitcoin and AI. Why It’s Now Favoring One Over the Other
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Mon, Dec 2, 2024 3min
Austin, Texas, company Core Scientific went from bankruptcy to stock market darling this year by betting on two technologies: Bitcoin mining and AI data centers. Shares are up 400%.
But if given the choice of whether to invest more in one business over the other, executives answer without hesitating: the data centers.
“We really just value long-term, stable cash flows and predictable returns,” Chief Operating Officer Matt Brown said in an interview. The company began life as a Bitcoin miner. Even though Bitcoin has been a great asset lately, it’s very volatile. By comparison, Core Scientific can earn steady profits for years by hosting servers owned by companies that sell cloud services to AI providers, Brown said.
This year, you couldn’t go wrong betting on either. Bitcoin is up 116%, and data centers are in high demand because tech companies need them to power their AI applications.
The two technologies seem to have little in common, but they both depend on the same thing: access to reliable power. Core Scientific has a lot of it, operating nine grid-connected warehouses in six states with access to so much electricity they could serve several hundred thousand homes. Other Bitcoin miners have similarly transitioned to data center hosting , but few with quite so much success.
Core Scientific’s business didn’t look quite so good at the start of the year. The company started 2024 under the shadow of bankruptcy protection. It had too much debt on its balance sheet after going public through the SPAC process in 2022 and succumbed to a Bitcoin price crash. But the company’s fortunes quickly turned around after it emerged from bankruptcy on Jan. 23 with $400 million less debt.
The company started the year focused entirely on crypto mining, but quickly pivoted as it saw demand surge for electricity for AI data centers.
In June, the company signed a deal with a company called Coreweave to lease data center space for AI cloud services. Coreweave has since agreed to lease 500 megawatts worth of space. Core Scientific says it will get paid $8.7 billion over 12 years under the deal.
Privately held Coreweave is one of the fastest-growing companies behind the AI revolution. It was once a cryptocurrency miner, but has since transitioned to offering cloud services, with a particular focus on artificial intelligence. It’s closely connected to Nvidia , which has invested money in Coreweave and given the company access to its top-end chips. Coreweave expects to be one of the first customers for Nvidia ’s upcoming Blackwell GPUs.
Core Scientific’s quick success in this new world has surprised even the people who are driving it.
“Every once in a while I need to pinch myself, to see I’m actually not dreaming,” Brown said.
Core Scientific’s success does create a high bar for the stock to keep rising. The company is expected to lose money this year, largely because of a change in the value of stock warrants—an accounting shift that doesn’t reflect underlying earnings. Analysts see the company becoming profitable in 2025, when more of its data center deals start to hit the bottom line. They see EPS jumping tenfold by 2027. Shares trade at about 13 times those 2027 estimates.
The data center opportunity should only grow from here, as tech companies build more powerful AI systems. Of the 1,200 megawatts worth of gross power capacity Core Scientific has contracted, about 800 megawatts are going to data center computing deals and 400 megawatts toward Bitcoin mining.
Brown said the company has good relationships with its power suppliers and can potentially add more capacity without having to buy more real estate. It expects to be able to secure about 300 more megawatts worth of power at existing sites, perhaps by the end of the year.
It’s also in the hunt for new sites, including at “distressed” conventional data centers that have lost their tenants. Core Scientific has figured out how to quickly spiff up bare-bones data centers and turn them into high-tech sites with resources like liquid cooling equipment and much higher levels of electricity.
A single server rack in a standard data center might need 6 or 7 kilowatts of power. A high-performance data center can use as much as 130 kilowatts per rack; Core Scientific is working on increasing capacity to 400 kilowatts. The company likens the process of upgrading the warehouses to turning a ho-hum passenger vehicle into a Formula One racing car.
Core Scientific’s transformation from a broken-down jalopy to a hot rod has been a wild story. Its fate next year will depend on just how quickly the AI revolution unfolds.