Safai points out that beachfront sites of any kind are difficult to find in Southern California, and sites in exclusive communities like Malibu are even rarer. Safai describes the Malibu Beach Inn as "a unique asset in a desirable hospitality market with little competition and almost impossibly high barriers to entry."

The location and barriers to entry account for the sales price of $617,000 per room, one of the highest prices per room paid this year, Safai says. Besides co-founding the Dreamworks SKG movie studio, Geffen founded the Asylum and Geffen record labels, which handled artists such as The Eagles and John Lennon in addition to producing the hit Broadway musical Cats and films such as Interview With the Vampire.