May 7, 2011

Mark Zuckerberg Done with Renting

Facebook’s Mark Zuckerberg buys house in Palo Alto

By Mike Swift and Pete Carey, SJ Mercury News
Posted: 05/05/2011 07:30:35 AM PDT, Updated: 05/05/2011 07:30:42 AM PDT

imageLong after he became a billionaire, Facebook CEO Mark Zuckerberg still rented modest digs. But now one of Silicon Valley’s top tech celebrities has become a first-time homeowner, recently buying a large house in Palo Alto that is a 10-minute drive from what will soon be Facebook’s new corporate campus in Menlo Park.

Zuckerberg has lived in Palo Alto almost continuously since he moved Facebook to Silicon Valley straight from his Harvard dorm room in 2004. Now, with the fast-growing company preparing for a widely expected initial public stock offering and a move into its first permanent home in the former Sun Microsystems campus, Zuckerberg also appears to be settling down.

While the subject of the Hollywood hit "The Social Network" isn’t expected to move in for several months, his new home in a leafy and affluent Palo Alto neighborhood has more than 5,000 square feet, with a saltwater pool, a music alcove and five bedrooms for when friends and family of the Facebook founder come to visit.

Sources close to Facebook confirmed that Zuckerberg bought a house in Palo Alto, but declined to say which one. The real estate transaction did not close under Zuckerberg’s name. However, public records requests revealed a trail of clues leading to a property purchased for $7 million.

This newspaper is not printing the address because of concerns for the privacy of the sellers, who still live there, and Zuckerberg.

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Don’t worry, this blog wouldn’t let a little thing like privacy stop us from Liking Mark’s new Mansion.  Or at least Friending it.  So, since the Merc was kind enough to give us a few details, such as more than 5000 sf, 17,000 sf lot and a $7 million dollar purchase price, it wasn’t that difficult to find:

1456 Edgewood Dr, Palo Alto, CA  94301
$7,000,000

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BEDS: 5
BATHS: 5.5
FINISHED SQFT: 5,617
UNFINISHED SQFT: 3,394
TOTAL SQFT: 9,011
FLOORS: 2
LOT SIZE: 16,995
STYLE: Single Family Residential
YEAR BUILT: 1903
YEAR RENOVATED: 1990
COUNTY: Santa Clara County
APN: 00311038
LAST UPDATED: April 14, 2011

Nobody would ever have suspected that “1456 EDGEWOOD DR HOLDINGS LLC” was actually the Facebook Dude.  Free Clue: Next time you buy a house, name your holding corporation after some people.

Here’s something fascinating, the house was listed for $5,850,000, which means the Zuckster overbid on this hot property down the street from the Beautiful Eichler with Poo!  Here’s what the GoogleCam has on this house:

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We can give you a better view than that.  Whoever set up 1456edgewooddrive.com forgot to take all their pages down!

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There’s page after page of house pr0n on this fact sheet, but just a look at the master bedroom suite description makes me wonder if this is really the ZuckerFriend we’re talking about:

  • Double interior French doors open to this personal retreat complete with crown molding, built-in speakers and a pocket door accessing the walk-in closet with custom built-ins
  • The light-filled spa-inspired master bath is opulently finished with Carrera marble flooring and slab countertops; marble slab baseboards are set beneath paneled wainscoting; two windows over the deep soaking tub with exposed nickel features welcome floods of natural light; additional appointments include Nuheat® electric heated floors, his and hers sink vanities with built-in mirrored medicine cabinets flanked by two wall sconces, a tremendous Carrera marble lined stall shower with dual showerheads and hexagonal tile flooring & a separately enclosed commode with skylight 

image

Bonus: Thrilling history of the property document has the address wrong on starting on the second page!

Update: Literally right after I uploaded this, Burbed reader San Matean shared this post from the Chronicle, with more pictures.  That’s the downside of a one article a day kind of blog.  However, the Chron in turn quotes the LA Times, which has this terrific description of the area from one of Mark’s new neighbors-to-be.

[The neighbor] described a neighborhood that is friendly but not that friendly. "Generally people do know who lives next door and across the street and say hello, but that’s about it," [he] said. He recalled that the most recent block party was held in 1976. "Everyone agreed we’d have to do it again," he said.

Palo Alto Online has the story too.  Honest, we had all this two days ago!

Comments (43) -- Posted by: madhaus @ 5:09 am

43 Responses to “Mark Zuckerberg Done with Renting”

  1. Real Estater Says:

    Isn’t it unethical to print the actual address? or is it a way to generate traffic for the site?

    Anyways, the list price was based on the standard $1000/sf for 94301. However, it looks like Mark had to compete with some of his employees!

    The more “friendly” areas are in the South. The fewer the block parties the more prestigious the street.

  2. anon Says:

    So THESE are the FCBs we’ve been hearing about for so many years.

  3. SEA Says:

    “Anyways, the list price was based on the standard $1000/sf for 94301.”

    Is that standard ever going to be updated for the ‘standard, guaranteed price double every 10 years or sooner?’ I’m thinking the same people that guarantee the price double are the ones who set the ethical standards.

    “However, it looks like Mark had to compete with some of his employees!”

    Every buyer has to compete with every other buyer, but the one who is willing and able to pay the most, wins. Do you really think his employees were tough competition? Come on, what’s an extra million here or there when you’re measured in billions?

    If a teenager was worth a few thousand, while most of her friends were worth far less than ten dollars, it’d be like her spending an extra dollar on a seven dollar purchase, while most of her friends don’t even have seven dollars. Such tough competition.

  4. SEA Says:

    Forbes estimates Zuckerberg’s net worth to be $13,500M. For simplicity, I am going to round that up to $14,000M.

    How much is $7M of $14,000M? 0.0005 (Yes–way, way under 1%!)

    If you are worth $1.4M, as a renter, then when house shopping, you would be looking for a home with a selling price of about $700. Yes, that’s right $700. Imagine you have a net worth of $1.4M and you’re buying a $700 home. If you’re worth $140,000, then you’d be buying in the $70 price range.

    Probably the income percentages are similar, but in this case, the purchase price is so small relative to net worth, that income clearly does not matter. That said, what percent is $7M of Zuckerberg’s annual income?

  5. Real Estater Says:

    SEA,

    Do you now understand why 94301 is special? Price is just a number for many of the folks who live here. Thus, the appreciation curve is not tied to the salary of working class folks. For any “dip” you see in this market (e.g.2008), it’s a great buying opportunity instead of cause for celebration as Madhaus treated it.

  6. Real Estater Says:

    All,

    Scroll up on the map and see what’s behind Edgewood drive. Yes, that’s EPA.

  7. Working Class Estater Says:

    Thus, the appreciation curve is not tied to the salary of working class folks.
    —-

    Sorry to hear that Real “Working Class” Estater is a misfit in his own zipcode.

  8. SEA Says:

    #5- We both know it’s only the RBA homes in 94301.

  9. Real Estater Says:

    I think one of the reasons Mark picked that spot is because it’s a more private location. It’s not one of those pass-through streets like where Steve Jobs lives. However, you will hear 101 as well as some plane noise due to proximity to the Palo Alto airport.

    In North Palo Alto, 1400 block and below are the best. The other $7M house on Edgewood is on the wrong side of Newell, and doesn’t have the same kind of exclusive surrounding.

  10. SEA Says:

    If you are lucky, and someone with $14,000M wants to buy your home, does asking price matter?

  11. madhaus Says:

    I know what an FB is (and it has nothing to do with Facebook), I know what PCBs are, and you don’t want them in your backyard. What are FCBs?

  12. madhaus Says:

    For $7 million couldn’t he have found something not in the flood zone?

  13. Real Estater Says:

    It isn’t in the flood zone, amateur haus!

  14. madhaus Says:

    #14, that map says otherwise. Also says your house in a flood zone too. No wonder you dismissed it.

  15. Real Estater Says:

    If you don’t believe me, look it up here by entering Zuk’s address:

    http://www.cityofpaloalto.org/forms/floodzone.lasso

    If it returns an “X”, then the house is not in a flood zone. The houses that are right next to the creek (e.g. homes on Edgewood) are NOT in flood zones. It sounds counter-intuitive, but it has to do with the elevation. Water actually flows out to other nearby areas.

    This is why you are an amateur. You don’t live in Palo Alto, so your understanding is at a 50,000 foot level.

  16. Petsmart groomer Says:

    > If it returns an “X”, then the house is not in a flood zone.

    If you’re going to make up stuff, make sure it’s not too easy to prove you wrong. From the City of Palo Alto website:

    The entire city of Palo Alto is in a flood zone of one kind or another. But most of the city is in an “X” zone, which the Federal Emergency Management Agency (FEMA) describes as an area either lying outside the so called 100 year flood limit and inside the 500 year flood limit, or as lying within the 100 year flood limit but shallow enough to not represent a special hazard.

  17. Real Estater Says:

    Petsmartass Groomer,

    Do you plan to live 500 years? FEMA does not require flood insurance if it’s merely in the 500 year limit. From Palo Alto’s perspective, that’s not part of the flood zone for real estate purposes, because none of the special building codes apply. For example, you are allowed build a basement.

    Need more expert advice? I think I deserve to be paid.

  18. Working Class Estater Says:

    If you’re going to make up stuff, make sure it’s not too easy to prove you wrong. From the City of Palo Alto website:
    —-

    Real Estater is not making things up. His “credibility” is unquestionable. The City of Palo Alto website is wrong, because its server is located in 50,000 foot level.

  19. SEA Says:

    Have you noticed the mighty Mississippi lately?

    How many thought that would happen?

    We get our money’s worth!

  20. Working Class Estater Says:

    From Palo Alto’s perspective, that’s not part of the flood zone for real estate purposes,
    —-

    Nice try. First in #15, the blanket statement “if it returns an “X”, then the house is not in a flood zone”. Then when it was proven wrong, it is now “that’s not part of the flood zone for real estate purposes.

    Keep trying.

  21. SEA Says:

    You know, when the big flood event happens, it avoids real estate, since it was not for that purpose.

  22. nomadic Says:

    #14, #16, Zuck’s new property flooded in 1998. That means he’s in the clear until 2098 if it’s the 100-year flood zone, right??? ;-)

    I wonder what “shallow enough to not represent a special hazard” is supposed to mean? I’d be seriously bummed with only 4″ of water running through my house.

  23. SEA Says:

    How could the house flood, it’s not 500 years old.

  24. Flood Zone Estater Says:

    I wonder what “shallow enough to not represent a special hazard” is supposed to mean?
    —-

    It means when you are boating on the neighborhood like Titanic, a floating submerged house won’t hit your boat like a iceberg.

  25. madhaus Says:

    How can any floating submerged houses hit you at the 50,000 foot level, amateur? That only happens every 500 years or over an inch of rainfall.

  26. Real Estater Says:

    If you ask any realtor in Palo Alto whether a specific house on the market is in the flood zone or not, no one goes by the 500 year flood. The “real” flood zone is the 100 year zone. The rules are very clear. If you are in that zone, you need to pay for flood insurance. If you expand your house you must raise the foundation. You are not allowed to have a basement…etc.

    You guys should be worried about earthquake or getting hit by a car much more than being in a 500 year flood zone area. If you’re really anal about floods, my recommendation would be to go move to Gilroy or Arizona.

  27. SEA Says:

    “real” flood zone has been added to the “real” real list of real things.

  28. Real Estater Says:

    You got it. Flood is highly unlikely in those 500 year areas. You can bet your child’s college tuition that you will not see it in your lifetime. Currently, Palo Alto is undertaking a major drainage project, so it’s even unlikely the 100 year zones will be flooded again. Buy with confidence!

  29. madhaus Says:

    You got it. Flood is highly unlikely in those 500 year areas. You can bet your child’s college tuition that you will not see it in your lifetime. Currently, Palo Alto is undertaking a major drainage project, so it’s even unlikely the 100 year zones will be flooded again. Buy with confidence!

    I suspect there is some real estate cheerleader in New Orleans who said the same thing in August, 2005.

    But realize those “100 year” and “500 year” zones were based on old weather patterns and that they are changing. Do you expect weather here to become more or less rainy? What would happen to the flood zones if rainfall changed from the typical 12 inches a year to something more like, say, Oregon?

  30. Flood Zone Estater Says:

    “real” flood zone has been added to the “real” real list of real things.
    ——

    You got it. The “real” flood is not an issue for a “real” homeowner who spent less than 1% of his wealth to buy his home. People like him can afford home in flood, hurricane, tsunami or tornado zone and still come out fine after the disaster. The “real” flood is only a problem for “real” homeowners homedebtors like Real Estater.

  31. Flood Zone Estater Says:

    I suspect there is some real estate cheerleader in New Orleans who said the same thing in August, 2005.
    —-

    But if New Orleans is in 100 year flood zone, there won’t be another flood before 2105 (and it is guaranteed by Mother Nature). You can buy there with confidence.

  32. Petsmart groomer Says:

    > Need more expert advice? I think I deserve to be paid.

    Since the “for dummies” series already exists, go ahead and write your own “by dummies” books. You do deserve to get paid: who said comedy had to be free?

  33. madhaus Says:

    #33, unintentional comedy is usually free.

  34. Credible Comedian Estater Says:

    Comedybility or credibility? Which one are you guys talking about?

  35. Real Estater Says:

    madhaus says,

    >>I suspect there is some real estate cheerleader in New Orleans who said the same thing in August, 2005.

    You’re comparing Bay Area to New Orleans? I didn’t realize we are below sea level.

    >>What would happen to the flood zones if rainfall changed from the typical 12 inches a year to something more like, say, Oregon?

    Since when did you become an astrologer? You can predict future weather patterns? Does that weather pattern only affect Palo Alto and not Sunnyvale?

  36. nomadic Says:

    astrologer? Ooh, that’s more precious than “exercept.”

    ROTFL.

  37. madhaus Says:

    Astrology, astronomy, meteorology, what’s the difference really?

  38. SEA Says:

    Astrologers know all!

  39. RealEstatologist Says:

    You amateurs don’t know paloaltology and that’s why have no clue about Palo Alto flood zones.

  40. corntrollio Says:

    Facebook doesn’t care about its users’ privacy. Why should we care about Zuckerberg’s?

  41. pa resident Says:

    Compare this to 369 Churchill, 94301? which Owen VAn Natta just bought.

  42. Real Estater Says:

    It’s all good!

  43. Brick by brick, row by row, building homes this way is slow [Burbed.com] Says:

    [...] if we want to know how much Lego it would take to rebuilt Mark Zuckerberg’s house, according to this silly tool, the answer is 23,470,037, and it would cost about the [...]


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