DETROIT -- Chrysler Group CEO Sergio Marchionne has put down roots in the Detroit area with the purchase of two homes in Commerce Township, Mich.
The homes were purchased for $3.9 million and $1.4 million in cash Feb. 3, a source with knowledge of the deal told Crain's Detroit Business, an affiliate of Automotive News.
He will be creating a secure “compound” for security, the source said. The smaller house will be used as a guest home of sorts.
Gualberto Ranieri, senior vice president of communications for Chrysler Group, would not comment on the topic.
It’s a positive sign that a top executive is buying a home, said Nanci Rands, a broker specializing in high-end homes at Hall and Hunter Realtors, an affiliate of Christie’s International Real Estate.
“In the past, a lot of the executives were renting,” she said. “But the demand has switched, and the top executives are getting the advice to buy rather than to rent.”
One challenge to the process, however, is the lack of heavily secured homes, Rands said.
“What the ultrahigh-level auto executive wants is privacy,” she said. “And while we have gated communities in the area, we don’t have a lot of the gated properties that they want.
“They’re looking for tremendous privacy and a security perimeter, and that is hard to find.”