Bloomberg News

San Francisco Mansion Sells for $29.5 Million After 24% Cut

November 07, 2011

(Adds tax payment for most expensive house in fifth paragraph.)

Nov. 2 (Bloomberg) -- A San Francisco mansion sold for $29.5 million, one of the priciest residential transactions in the city this year, as rising wealth among technology executives in the region lets them spend more on homes.

The sale was completed yesterday, said Patrick Barber, head of the San Francisco office of Pacific Union International, the property’s listing brokerage. He declined to name the buyer. The four-level brick house in Pacific Heights has 11,000 square feet (1,020 square meters) of space and panoramic views of San Francisco Bay.

“Homes now are priced realistically and they’re selling,” Barber said in a telephone interview. Nearby properties listed for $40 million to $60 million in the Pacific Heights section known as the Gold Coast never sold, he said. The 1922 mansion sold for 24 percent less than the original listing price of $39 million and below the most recent asking price of $33.9 million.

Home prices in desirable parts of San Francisco and Silicon Valley have defied the U.S. housing slump, buoyed by investors and employees from local tech firms, who sell shares on private exchanges. The unemployment rate in San Francisco’s metropolitan area is 8.7 percent, the lowest in California, according to the state’s Employment Development Department.

Transfer Tax

A $737,500 transfer tax indicates the sale was the second- highest residential transaction of the year, according to the San Francisco assessor’s office. The most expensive was a nearby Pacific Heights property that in August recorded a tax payment of $825,000, which translates to a $33 million purchase price, based on the assessor’s formula.

The Tudor-style house is located near the Presidio national park on Broadway near Lyon Street. The property has six bedrooms, five full bathrooms, two half-baths and a landscaped garden overlooking the bay. Other features include a four-car garage, heated pool and spa, and a wine cellar for 3,000 bottles, according to multiple listings service data.

“There was a time when it wasn’t fashionable to spend money, but today the market sees value,” Barber said.

--Editors: Daniel Taub, Larry Edelman

To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net.

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net.


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