Neverland Ranch - Whatever happened to Michael Jackson's infamous home?

Neverland Ranch, the 2600 acre estate and former home of Michael Jackson, is undergoing a major makeover by it's current owners.

In May 2008, Colony Capital LLC - a Los Angeles based investment firm run by billionaire Tom Barrack - purchased the loan secured by the estate. At that time it was reported that Jackson was in default of the $24.5 Million owed on the property.

In November 2008 a deal was struck whereby Michael Jackson transferred title of Neverland Ranch to Sycamore Valley Ranch Company LLC, a joint venture between Jackson and an affiliate of Colony Capital LLC. The Santa Barbara County Assessor's Office stated Jackson sold the property for $35 million.

What's interesting is that in 2004 the ranch was estimated to be worth well over $100 Million. At that time the Santa Barbara County assessor's office assessed the value at $96 Million for tax purposes.

In 1987 Jackson purchased the land that became the Neverland Ranch for $17 Million.

The Wall Street Journal is reporting that since January this year, "more than 80 workers have been toiling at the ranch as part of a plan by real-estate investment firm Colony Capital LLC to convert the former money pit into a lucrative asset. The company has spent more than $3 million on landscaping and repairs to the property's electrical and plumbing systems."

Before it puts the estate on the market, Colony plans to change its name and allow local charities to use it to host fund-raisers.

"We think we made a very smart real-estate deal that was to the benefit of Michael and Colony," says the real-estate firm's chief executive, Tom Barrack. He believes the estate could fetch $70 million to $90 million, in which case Mr. Jackson could also realize a tidy profit. "Should Michael Jackson's career be re-accelerated, it will have substantial additional value."