As we first reported last month with respect to the sale of 2845 Broadway up on Billionaire’s Row:
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.
Yes, “yammerings,” as in David Sacks, CEO of Yammer. From Trulia this week:
Tech mogul David Sacks has reportedly just paid $34.5 million for 2845 Broadway Street in San Francisco, making it the most expensive home ever sold in San Francisco. Sources close to the deal, which is currently in escrow, say that Sacks and his wife Jacqueline are the proud new owners of the partially-completed home on ‘Billionaire’s Row.’
We’re also hearing buzz among local “in-the-know” brokers that the officially recorded purchase price will likely come in lower than $34.5 million, and a portion of the sale will be recorded as alternative personal property for tax reasons, but that is indeed the amount of money it took to get this home sold. We’ll know more when the official docs make their way to public records.
Once again, the sale has closed and we have reviewed the public records which pegs the recorded sale price at $20,000,000 based on the transfer tax paid to the City. Which begs the question, if the “in-the-know” sale price Truila is reporting is correct, are the “tax reasons” for under recording the sale price by $14,500,000 simply an attempt to avoid paying the City an additional $362,500 in transfer tax and reduce the Sacks’ property tax bill by $169,500 a year? And if so, is it a legitimate strategy and will the City stand for it?
UPDATE: Straight from David Sacks:
There’s no “tax tomfoolery”. You correctly reported the sale price of 2845 Broadway when you checked the public records. Trulia didn’t bother to. It’s just sloppy reporting on their part. As the publication that appears to do actual research and fact-checking, rather than just quoting unnamed sources, you should have stuck to your guns and stood by your original story.
That said, I remain a fan of your blog.
Cheers. And always, thank you for plugging in.
∙ The Massive 2845 Broadway Misses The Mark And Record Books [SocketSite]