November 2, 2012

The Massive 2845 Broadway Misses The Mark And Record Books

2845 Broadway

As plugged-in people know, the two-parcel site which includes 2940 Pacific and upon which 2845 Broadway was built was purchased for $32 million in 2002, the cost of construction for the 17,500 square foot home and 6,000 square foot guest house has already reached $20 million, and the "buzz among brokers" is that it will cost another $8-16 million to finish.

And as we first reported last month:

While the listing for 2845 Broadway at $38,500,000 was quietly removed from the MLS without a reported sale last week, as a tipster notes, the unfinished Gold Coast property which is currently owned by the Sperlings is actually under contract to be sold.
Originally listed for $65,000,000 in 2006, if the sale of 2845 Broadway closes within 14 percent of its most recent list price it will be the most expensive home ever sold in San Francisco, relegating 2840 Broadway to the penultimate position at $33,000,000.

Unless a major miscalculation, fat finger error or tomfoolery by San Francisco's Assessor Recorder's office is in play, based on the recorded transfer tax paid, the copy of the deed we received pegs the sale price of 2845 Broadway at $20 million.

A $20 million sale is just a bit below the original $65 million ask, $18.5 million (48 percent) under its last list price, roughly $32 million less than has been invested in the property to date, and nowhere near the $33 million 2840 Broadway commanded.

In terms of the buyer, while we've heard various yammerings, the legal entity on the deed is Broadcliff LLC with a mailing address of a wealth manager out of Dallas, Texas. We can't yet officially confirm the individual hidden behind the LLC.

The Most Expensive Home Ever Sold In San Francisco Is... [SocketSite]
The $65,000,000 House [SocketSite]
Over $50 Million Invested And Now Asking $38.5M For 2845 Broadway [SocketSite]
Behind The Sperling’s Shocking "Sale" Of 2323 Hyde For $9,000,000 [SocketSite]
The Confidential Sale Price For 2840 Broadway On Billionaire’s Row [SocketSite]
The Political Case Of A 38 Percent Reduction In Property Tax Paid [SocketSite]

First Published: November 2, 2012 11:15 AM

Comments from "Plugged In" Readers

$20 million is actually a good deal even if you need to spend $10 million to complete the project!

Posted by: MarinaBoy at November 2, 2012 11:26 AM

that is such a Texas style manse.
- if you build it they will come...:)

Posted by: jose at November 2, 2012 11:44 AM

I am sure that there is an under the table deal to reduce transfer and property taxes.

Posted by: Me at November 2, 2012 12:09 PM

^ I am sure such a visible resale would not attempt anything so foolish.

Posted by: lol at November 2, 2012 12:12 PM

Was that deed for both parcels?

[Editor’s Note: Yes.]

Posted by: formerly%whatever at November 2, 2012 1:15 PM

"That's a bit below the original $65 million ask, $18.5 million (48 percent) under its last list price, roughly $32 million less than has been invested in the property to date..."

No wonder they're trying not to report it on the MLS, that's an embarrassing outcome.

Posted by: ExAgent at November 2, 2012 1:36 PM

I'm glad to hear the Sperlings got a taste of their own medicine.

Posted by: philipthemholes at November 2, 2012 3:58 PM

Broadcliff LLP appears to be a Brittish Financial consulting frim, founded by Mark A. Newman - fromer Lehman Bros. CIO.

[Editor's Note: LLC (not LLP).]

Posted by: philipthemholes at November 2, 2012 4:09 PM

See, tipster was right. Good buildings in the best neighborhoods down 50% from the peak!

Posted by: NoeValleyJim at November 5, 2012 9:19 AM

A fool and his money are soon parted. Just give the Genberal Contractor a stack of blank checks.

Posted by: inclinejj at November 5, 2012 3:44 PM

If $20M is the number than it is certainly an interesting harbinger for other grand homes of similar size needing work. I can think of a few homes out there in need of $5M+ that this sale is not a great comp. I would have thought this sold for more money. The lot alone is worth $15 easily.

Posted by: eddy at November 5, 2012 4:00 PM

I was just at the assessor's hearing today and observed this "sweet deal" made by Matthew Thomas. The assessor was giddy and laughing in advocating for the 17.4 million dollar reduction in assessment value, a 54% reduction. Wouldn't we all want that? He meanwhile insulted and was accusatory towards me (a pion, compared to the billionaire who owns the above property) for wanting a fair appraisal of my property. please contact me if you would like more information.

Posted by: m at November 6, 2012 8:03 PM

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