A San Francisco mansion has sold for $28.5 million, an eye watering $10 million above the home’s $18.5 million asking price.
The eight-bedroom, seven-bathroom home, located at 20 Cherry St., was on the market for just 20 days before its record-breaking purchase closed on Oct. 22, showcasing the intense competition in San Francisco’s luxury housing market.
The bidding competition has emerged as San Francisco draws talent and wealth tied to the artificial intelligence boom, prompting a modern day gold rush for the Bay Area.
The city’s latest AI darling, Anthropic, unveiled its public IPO filing on Monday in what is expected to be one of the largest stock debuts in history.
While the potential share price or number of shares offered has not been disclosed and will be determined after a “roadshow” with potential investors, the Claud developer is expected to be valued at over $2 trillion, according to NBC News.
San Francisco-based Anthropic could break the current record holder for largest stock debut, Elon Musk’s SpaceX, which was valued at approximately $1.77 trillion at launch.
The Cherry Street home is not the first purchase to come in way over asking as the AI boom in San Francisco brings in piles of new money.
Earlier this month, a home at 2 Sixth Ave. sold for $15 million after its listing price was only $8 million. In May, a home in Cow Hollow at 2512 Union St. sold for $15 million after listing for $7.95 million, an 89% premium, according to the San Francisco Chronicle.
The Cherry Street home, the buyer for which was represented by Nina Hatvany of Compass Real Estate, sits on 0.31 acres on a cul-de-sac near the Presidio Wall.
The midcentury home, built in 1966 and designed by San Francisco architectural firm Whisler-Patri, had remained in the same family for more than 40 years.
The sellers were the Janice R. Lurie Trust and Robert A. Lurie Trust. Bob Lurie, 97, is the former owner of the San Francisco Giants. His wife, Janice Rosen Lurie, died in July at 96, according to the San Francisco Business Times.
Hatvany told the Business Times that the property is rare because of its large lot, private garden, and views towards the Presidio.
The sale, which set a city record for the largest dollar amount a home has sold for above its list price, shows how San Francisco continues to diverge from housing trends across the country.
In recent months, the average 30-year mortgage rate has steadily climbed, rising above 7% this month. While this increase has put pressure on buyers who need financing, the luxury market in San Francisco has not been heavily impacted.
Due to the market’s influx of wealthy buyers, many of the area’s most expensive homes are being purchased in cash. About 79% of homes in the city selling for more than $7 million had no mortgage at closing through September 1, according to the San Francisco Chronicle.
In the first six months of the year, more than 140 San Francisco homes went for at least $1 million above their list prices, according to Compass data—a sharp increase from eight during the same period a year earlier.
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