<![CDATA[Valleywag: Real Estate]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: Real Estate]]> http://valleywag.com/tag/real estate http://valleywag.com/tag/real estate <![CDATA[ Bill Joy sells $40 million condo to Hugh Jackman at half off ]]> Dreamily inventive billionaire Bill Joy, the cofounder of Sun Microsystems, has predicted doom for the human race in the pages of Wired. He has a new reason for pessimism: A Manhattan condo he put on the market for $40 million has reportedly sold to Australian actor Hugh Jackman for $21 million — down from a previously rumored sale price of $25 million. The five-bedroom, three-floor condominium has a view of the Hudson River. We have a theory on why Joy sold, even at such a discounted price.

It's not like he needs the cash. But we don't think Joy, who joined Kleiner Perkins three years ago, as a partner in the once-storied venture-capital firm which funded Amazon.com and Google, among others, has much time to enjoy the place. Kleiner, like much of the venture-capital business, is struggling, especially with its bets on cleantech which have been battered by both the credit crunch and falling oil prices which make alternative energy sources less profitable. Better to unload it at any price — and invest in real estate closer to the office. As for Jackman, we figure the X-Men star simply knows a bargain when he sees one.

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Fri, 14 Nov 2008 12:20:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5087499&view=rss&microfeed=true
<![CDATA[ Halsey Minor's $31 million hole in the ground ]]> This just in: CNET founder turned angry Internet commenter Halsey Minor promises he will "get it up"! "It," in this case, being the Landmark Hotel in downtown Charlottesville, for which he has promised $7 million of his own money and obtained $24 million in promised financing from a bank. There's the hitch: The bank has stopped lending money, and no one was paid for September. Minor says he's "furious" and is getting a lawyer. Local publication CVillain.com wonders, though, if the bank yanked its loan because Minor somehow violated a covenant of the construction loan. (Photo via CVillian.com)

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Wed, 12 Nov 2008 16:20:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5084896&view=rss&microfeed=true
<![CDATA[ Google's shrinking NYC office pampers the Lego-and-scooter set ]]> The immense former Port Authority building where Google now does business in Manhattan has an impressive history. Truck drivers once drove onto elevators and motored around the building's upper floors. Today, the place has been Googlefied with snacks, ping-pong tables, and a jillion Legos. Free scooters let staffers zip one part of the supersize building to another. But the best thing about this video? Google Docs manager Jonathan Rochelle talks up his office for 2 minutes and 42 seconds without once using the word "cool." We just wish The Big Money's camera crew had shown us the 50,000 sq. ft. Google is emptying out for sublease, too.

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Wed, 12 Nov 2008 12:00:00 PST Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5084485&view=rss&microfeed=true
<![CDATA[ Google's New York sublets could spell layoffs ]]> As recently as a year ago, Google was scrambling to get more office space in New York's Chelsea neighborhood. Now, just as swiftly, it's trying to offload it, putting 50,000 square feet up for sublet. The company has cut back on snacks in New York, as elsewhere — but real estate is a far more serious thing to trim. With less room for warm bodies, it suggests Google will soon be shedding staff.

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Fri, 07 Nov 2008 15:00:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5079980&view=rss&microfeed=true
<![CDATA[ Zillow chief's home a secret ]]> A flack at Zillow recently tried to interest me in the online real-estate startup's listings of celebrity homes. A fun topic, and one that might distract reporters from talk of the company's finances after a recent layoff. (Zillow is infamous in real-estate circles for its questionably accurate estimates of home prices.) I asked her: What about the celebrity home of Zillow CEO Rich Barton? The answer I got: Zillow only lists celebrity houses which are up for sale. But Barton has been happy to use his personal residence to generate publicity for the site before, blogging about the sale of his previous Seattle home. Why so shy now?

A search of King County property records showed that since the June 2007 sale of his previous residence, Barton hasn't purchased property under his or his wife's name. Is he renting? Zillow's Amy Bohutinsky says Barton does own his own home, which a Seattle-based tech reporter says is in the city's Madison Park neighborhood. He may well have bought it under a trust.

If so, it's the first time he's chosen to do so in years of owning Seattle-area real estate. It's telling that Barton, an ex-Microsoft executive who got rich through the software giant's spinoff of travel site Expedia, has suddenly become interested in keeping his home address private. Could it have anything to do with his new business of telling everybody what their neighbors' homes are worth?

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Thu, 30 Oct 2008 13:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5071397&view=rss&microfeed=true
<![CDATA[ Legendary VC Tom Perkins putting $20.5 million house on the market ]]> 7,535 sq. ft. 7 bd/6.5 ba. 3-car gar. Wet bar. Wine cellar. MUST SELL NOW. Okay, that last bit isn't part of the listing for Tom Perkins's palatial home in Belvedere, across the Golden Gate from San Francisco. But the fact that Perkins wants to sell his house, in this real-estate market, is disturbing. He is one of the founders of Kleiner Perkins Caufield & Byers, and is fabulously wealthy. He has already started hawking his $187 million megayacht, the Maltese Falcon. What this looks like: Perkins is liquidating his worldly possessions. Let's assume he's not doing this because of financial straits. The only alternative conclusion: Perkins thinks he should sell now, before things get much, much worse.

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Wed, 29 Oct 2008 12:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5070536&view=rss&microfeed=true
<![CDATA[ A Googler's modest $7.75 million home ]]> Why did Google engineer Michael Frumkin pay $7.75 million for an oceanside house in Santa Cruz? It was ideal, he says, for boogie boarding. Frumkin is contesting his tax bill for 240 Geoffroy Drive, claiming the property is only worth $3.5 million. When he purchased it from venture capitalist Gerard Casilli in 2006, he paid $4 million for the house and $3.75 million in "option money" — essentially paying Casilli for the right to buy the house in the first place. Frumkin essentially overpaid for the place to entice Casilli to sell. Boil it down, and you have a classic tale of a VC screwing an engineer. Nice house, though. (Photo by Shmuel Thaler/Santa Cruz Sentinel)

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Wed, 29 Oct 2008 10:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5070236&view=rss&microfeed=true
<![CDATA[ Inside Larry Ellison's Pacific Heights mansionette ]]> Oracle CEO Larry Ellison doesn't really live in his multimillion-dollar house in San Francisco; he mostly keeps it around for parties, like the rager of a dinner party PR schemestress Brooke Hammerling threw for the 10th anniversary of NetSuite, an online-software company which Ellison has backed since it was a startup. Kara Swisher did one of her let-the-CEO-yammer interviews with NetSuite's Zach Nelson. Videographer Richard Blakeley cut her clip down to just the real-estate porn. It works a lot better with the intro theme from MTV Cribs, doesn't it?

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Tue, 28 Oct 2008 13:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5070051&view=rss&microfeed=true
<![CDATA[ Mystery startup admits it's overspending on office space ]]> In a Craigslist post titled "R.I.P. Good Times? Save Money by Sharing our SoMa Office," a San Francisco startup seeks a cotenant to defray its monthly lease. It's an allusion toVC firm Sequoia Capital's times-are-tough presentation, which called on startups to cut their burn rates. What the ad doesn't say: The fact that this startup has space to spare means it rented an oversized office, likely in the hopes of making more hires, and now realizes it can't fill it. Any guesses, based on the details in the ad — a top executive named Justin, an office at 7th and Mission — who it is? Leave them in the comments. Here's the ad, with more pictures:

The economy's tanking, VCs are pulling back, and it's time to tighten up the old belt. So, instead of paying top dollar for your own office space, why don't you save $$$ by sharing with us?

We're a super-cool, super-intense early-stage (post series-A) company, with 4600 square feet for only 15 people. So we have extra space.

The office is located at Mission & 7th street in SF's SOMA district, one block from BART and only a few blocks from 101, 280 and the Bay Bridge.

The office, which is on two floors, has exposed brick walls, exposed timber and steel beams, hardwood floors on the top floor, and ceilings that top 20 feet. We work on an open floorplan (IE desks but no cubes or offices). The space has plenty of natural sunlight, and a quirky art installation left by the previous tenants. A section of the bottom floor would be yours.

Space comes equipped with all the necessities - big-screen TV, rock band, pool table, foosball table, and couches throughout.

There are two bathrooms, and a glass conference room which you can use when we're not using it.

There is space for anywhere from 4-10 people (although 10 would be a tight fit). We'll charge by the desk, which gives you flexibility as you grow.

It's available immediately on a month-to-month basis.

Please e-mail me (Justin) with additional questions, or to schedule a walk-through.

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Wed, 22 Oct 2008 14:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5067330&view=rss&microfeed=true
<![CDATA[ CNET founder's $22M mansion to get $15M makeover ]]> CNet founder Halsey Minor, whose 8020 Media isn't exactly repeating his success, has hired hotshot interior designer Michael S. Smith to redo his 8 bedroom, 7 bathroom, 17,895 square foot Presidio Heights place at 3800 Washington Street. Minor is still arguing with Sotheby's over $16.8 million in purchases he refuses to pay for. But he's moving forward with home remodeling, having told Portfolio that the place “needs a lot of work to go from this grandiose monstrosity to a real house.” After the jump, Google and MSN snoop shots.


Byzantium Brokerage Services has another 48 photos.

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Mon, 06 Oct 2008 14:20:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5059679&view=rss&microfeed=true
<![CDATA[ Bebo cofounders buy $29 million cabin on a hill ]]> Well, it's on a hill, but it sure ain't a cabin. Instead, Bebo cofounding couple Michael Birch and Xochi Birch have purchased a $29 million manse in Pacific heights on the corner of Broadway and Broderick. It looks like the Birches purchased the property from one William Mathes, a managing partner at Behrman Capital. Mathes originally purchased the lot for a mere $3.25 million back in 1998.

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Fri, 03 Oct 2008 07:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5058443&view=rss&microfeed=true
<![CDATA[ Yahoo building 300,000-sq. ft. Nebraska datacenter ]]> Layoffs be damned, Yahoo needs more servers. Data Center Knowledge reports the company spent $14.8 million to buy a warehouse/office building in La Vista, Nebraska, a suburb of Omaha. Paperwork suggests Yahoo is ready to put $100 million into the site. Here's the real-estate porn:

The property includes a 300,000 square foot existing structure on 24.3 acres of land, with approval to add a 38,000 square foot expansion. The building includes a three-story office area and a warehouse with a 35-foot ceiling. Tender Heart Treasures, which makes gifts and home decor products, will vacate the building in January when it moves to another location, according to the Omaha World-Herald.

In August Yahoo applied for tax incentives under the Nebraska Super Advantage program, which requires a minimum investment of $100 million and the creation of at least 50 high-salary jobs paying a minimum average salary of $68,700. The filing revealed that the project would be in La Vista, a fast-growing Omaha suburb whose corporate residents include HP and eBay’s Paypal unit, which employs about 2,000 workers at a call center not far from the new Yahoo site.

Omaha was recently named one of the most affordable U.S. cities to operate a data center by The Boyd Company, with an annual operating expense of $12.9 million, less than half the cost of operating a similar facility in New York.

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Thu, 25 Sep 2008 10:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5054771&view=rss&microfeed=true
<![CDATA[ Bargain $8 million condo just the latest favor from Sergey Brin's banker ]]> The $8.5 million pied-à-terre that Google cofounder Sergey Brin and 23andMe cofounder Anne Wojcicki recently purchased in Manhattan's Greenwich Village? The previous owner, Bill Brady, paid $7 million for the condo around a year ago and was trying to move the unit for as much as $12 million after buying into a different building owned by art superstar Julian Schnabel. If you think it was the negotiating mastery of Brin and Wojcicki — who are expecting their first child together — think again. A tipster points out that besides helping with Google's IPO at Credit Suisse First Boston, Brady and former boss Frank Quattrone still advise the company:

[Brady] underwrote subsequent stock offerings, is a bidder in Google's transferable stock option program, covers its conference calls, and tries to cheerlead its price up to $900.

Our tipster asks how something that could appear as a conflict of interest got past Google's Code of Conduct Police, but he answered his own question: After funding his wife Wojcicki's biotech startup, it's clear that Brin, his fellow cofounder Larry Page, CEO Eric Schmidt, and other executives hold themselves well above any ethical guidelines they may have put into place for the underlings at the Googleplex.

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Tue, 16 Sep 2008 08:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5050411&view=rss&microfeed=true
<![CDATA[ Sergey Brin buys $8 million duplex in Greenwich Village ]]> A 23-foot balcony, 3,457 square feet of space, four bedrooms, and a limestone bath with heated floors are what Google cofounder Sergey Brin and his wife, 23andMe's Anne Wojcicki, are getting at 744 Greenwich Street for $8.5 million, reports New York's Cityfile blog. The place formerly belonged to Bill Brady, who heads Credit Suisse's Global Technology group in Palo Alto. It'll make a perfect site for more of 23andMe's genetic-testing spit parties.

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Mon, 15 Sep 2008 14:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5050205&view=rss&microfeed=true
<![CDATA[ Valley penthouse up for grabs in raffle ]]> A team of sponsors lead by developer Barry Swenson are offering a penthouse in Swenson's City Heights high-rise housing development in San Jose as a prize in a raffle. A $150 ticket could win you the $1.2 million flat or $1 million in cash — if 15,000 tickets are sold. Otherwise, you'll have to settle for half the ticket takings. The raffle will reportedly benefit InnVision, which provides services to the homeless, but it's not clear how much. But then as the lucky winner you could live like an Objectivist, peering down at the impoverished masses and decrying the folly of altruism all you like. So there's that.

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Wed, 10 Sep 2008 01:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5047681&view=rss&microfeed=true
<![CDATA[ Zillow's new ad network desperate ploy to make sales numbers? ]]> Ad networks are to Web 2.0 business strategy what the portal was to the dot-bomb — a desperate attempt to turn the eyeballs that were used to calculate valuations for venture capital and acquisition purposes into actual revenue by aggregating advertising inventory. And they work about as well as you'd expect, which is not very. So I was more than a little bemused to see real estate listing Web site Zillow touting a new ad network along with a consortium of struggling newspaper publishers. Because from what I've heard about the startup, it hasn't been able to make revenue numbers promised to investors by founder and CEO Rich Barton, while it burns through cash on — wait for it — real estate.

Barton, who famously founded travel Web site Expedia as a Microsoft property before it split off and sold to IAC, has apparently been telling investors that the company will make $40 million in revenue by the end of the year — even though the best estimates within the company peg the amount at more like $8 million, according to a source. Meanwhile, the company maintains a lavishly appointed office on the 46th floor of the Wells Fargo Center in Seattle's central business district, and has raised a total of around $87 million in three rounds of venture capital funding.

Trulia, which offers similar price estimates for properties, is neck-and-neck with Zillow in terms of visitors according to Compete. However, Trulia has only raised $33 million and is headquartered in a relatively humble office building at the foot of San Francisco's Portrero Hill. Granted, savvy visitors probably check both sites because the numbers provided can often be wildly inaccurate. Sort of like Barton's revenue estimates.

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Tue, 09 Sep 2008 07:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5047118&view=rss&microfeed=true
<![CDATA[ Freddie Mac, Fannie Mae, and your home ownership dreams ]]> Freddie Mac and Fannie Mae, lenders created at the whim of evil government in the 1930s and 1970s respectively, have been brought back under national supervision in the wake of the country's mortgage crisis. The two institutions simply weren't "capitalized" enough to weather the sub-prime storm, and whatever government regulations were left failed like levees under a flow tide of bad debt. And while it will help stabilize the mortgage market, it won't necessarily help people who have sky-high payments and underwater equity. Ever resourceful, Americans in areas hard hit by foreclosure are playing home ownership musical chairs with the banks. All I understand about economics is that I feel poor. So does this mean Bay Area housing will get more affordable?

No. While exurban exiles will feel the pinch on payments and at the pump, denser inner-urban communities will probably see rents increase as desperate homeowners look to cut costs and find job opportunities. And it's not like you can expect affordable housing in the likes of Belmont and Saddle River, Ross or Sag Harbor, Piedmont or Greenwich. As bad as renting is long-term for your retirement and rent control may be for their housing markets, apartment dwellers with fixed costs are the least likely to move back in with parents right now.

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Sun, 07 Sep 2008 23:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5046550&view=rss&microfeed=true
<![CDATA[ SF luxury homes hold value, unlike LA ]]> It's not surprising, but the number's good to know: Stats from First Republic Bank place San Francisco luxury homes at an average $3.01 million in value. It's a new high and a slight increase from last year. By contrast, high-end homes in Los Angeles are off 3.8 percent. San Diego luxury home values dropped a full 7.8 percent. Does that mean Brentwood bulldog daddy Jason Calacanis will pay lower taxes now? That guy has an angle on everything. (Photo by Jason Calacanis)

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Tue, 26 Aug 2008 11:20:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5041993&view=rss&microfeed=true
<![CDATA[ YouTube's Steve Chen decorating a penthouse downtown ]]> Is Google's Marissa Mayer getting a coworker for a neighbor? Word on the tipline is that YouTube cofounder Steve Chen is putting together a high-tech bachelor pad:

A friend who's a contractor says Steve Chen is building a tech-heavy penthouse on the top floor of the Ritz-Carlton. Lots of video screens and stuff. That's all I know.

I'm just guessing that this isn't in the neoclassical Ritz-Carlton hotel on Nob Hill, but in the residential apartments built atop the old de Young building that's managed by Ritz-Carlton. When Chen is all moved in, I imagine mid-Market penthouse neighbors Mayer and Al Gore dropping by, the latter with a stern lecture on the importance of climate change and the former with a box of cupcakes. (Photo by Allan Ferguson)

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Fri, 22 Aug 2008 08:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5040454&view=rss&microfeed=true
<![CDATA[ Seattle baristas propose 300-foot colossus honoring Paul Allen ]]> Kapow Coffee baristas have collected hundreds of signatures on a petition to erect a 300-foot statue of billionaire Microsoft co-founder turned real estate developer Paul Allen in Kapow's South Lake Union neighborhood. It's a backhanded prank: Allen's development firm Vulcan owns about a third of South Lake Union and has been relentlessly gentrifying the place. Kapow's rent has tripled in recent years. It's not their first poke in Allen's eye. After he convinced city officials to provide a South Lake Union trolley service, Kapow's staff stuck the streetcars with the nickname "S.L.U.T." On the statue plan, Allen made the faux pas of letting a spokeswoman handle reporters for him. Come on, big guy, go down there and order a triple shot. They'll be eating out of your hand in ten minutes. (Original photo by Randy Wick)

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Tue, 19 Aug 2008 15:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5039056&view=rss&microfeed=true
<![CDATA[ Facebook's new home: HP's old office park ]]> Facebook's new bosses don't let the peons throw drinking-game parties anymore, but at least the drones get to go to work in a pedestrian-friendly urban setting, right? Nope. Facebook plans to move "a substantial portion of its operations" in the first quarter of 2009 from downtown Palo Alto to one of HP's old office parks on to 1601 California Avenue, reports Palo Alto Online. The lot, about 8.5 acres in the Stanford Research Park, used to house HP's spun-off subsidiary Agilent, but by the looks of it, we would've guessed Dunder-Mifflin.

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Tue, 19 Aug 2008 07:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5038743&view=rss&microfeed=true
<![CDATA[ Pixar veteran plans for massive treehouse in Lafayette ]]> Pete Docter, the writer-director of Pixar production Monsters, Inc., wants to build a home in the sky nestled in the branches of a giant, fake oak on a $950,000 piece of land in Lafayette, nestled in the hills behind Berkeley.

The plans call for a master bedroom, two children's bedrooms and a living room, all connected to a two-story house on an adjoining hill, with an elevator leading up from an underground garage. County inspectors and city staff are supporting the project so far. "If the city will allow him to do it, I have every belief that he will follow through," city planner Greg Wolff told the Contra Costa Times. My advice to Docter? Don't invite the infamous tree-sitters of Berkeley over. They'd never leave.

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Fri, 08 Aug 2008 16:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5034949&view=rss&microfeed=true
<![CDATA[ Larry Page's $7 million manse ]]> Eager to expose Google's threats to our privacy, the National Legal & Policy Center proved so inept at technology that it ended up exposing Google cofounder Larry Page's street address in a publicity stunt. Hidden in plain sight within the NLPC's PDF document: Waverley Oaks Court, the Palo Alto street on which Page lives. (Last year, Valleywag published a Google Maps view of Page's home, but not the address.) It only took a little digging through publicly available records to turn up the actual house number — 100 Waverley Oaks Court, Palo Alto, Calif. So how much is it worth?

Page was granted the deed on the property on February 18, 2005 after the historic building had been on the market for years with an asking price of $7.95 million. The rich are always cheap: Page managed to get about $1 million knocked off the price, as the next year the property was assessed at just under $7 million. By this year, the assessment was back up to $7,216,214, with the nearly 3/4-acre property alone assessed at $5.1 million. How much are the taxes on the property? $78,550.96 over the last year.

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Fri, 01 Aug 2008 17:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5032163&view=rss&microfeed=true
<![CDATA[ Fox Interactive's $350 million new offices ]]> Poor Yahoo can't even keep tenants at the Yahoo Center in Santa Monica — Fox Interactive Media will be moving all 2,000 of its Los Angeles-area employees to the as-yet-uncompleted Horizon at Playa Vista office park in Playa Del Rey. The deal, which Peter Levinsohn calls "the biggest deal in LA real estate in 25 years," is worth $350 million according to sources cited by the Los Angeles Times. The planned complex, situated between Culver City and LAX, will also host a retail complex, making it easy for FIM employees to buy the products with the paychecks funded by the advertising for those products, thereby completing the great Southland circle of life.

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Tue, 01 Jul 2008 13:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5021204&view=rss&microfeed=true
<![CDATA[ Apple to move into very boring New York office tower ]]> Apple will move into a new New York office tower going up on 510 Madison, taking two floors. The building is still under construction, but developer CBRE Richard Ellis has a live construction cam you can use to follow its progress. Glancing at sketches,we expected more from design-obsessed Apple. Other than the pictured garden terrace, and a for-tentants-only indoor pool and health club, the place looks pretty much like every other Manhattan office tower.

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Wed, 18 Jun 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5017518&view=rss&microfeed=true
<![CDATA[ The five drug dens of bad-boy ex-CEO Henry Nicholas ]]> How can everyone have missed the most lurid aspect of the fall of former Broadcom CEO Henry Nicholas? Amidst all the sex and drug charges, we've missed the one subject that really gets people's tongues wagging: real estate. Thanks to laws passed in America's "war on drugs," any property involved in the transportation, storage and sale of illegal narcotics is subject to seizure. Thanks to the magic of Google Maps and Street View, we can also get a glimpse into the somewhat banal landscape of Nicholas's party circuit under the oppressively constant sunshine of Southern California's Orange County and Nevada. Let's start at Broadcom headquarters.

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Fri, 06 Jun 2008 14:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5014053&view=rss&microfeed=true
<![CDATA[ Google's suburban sprawl ]]> Google's announcement today of a massive campus expansion was inevitable. Having taken over every last scrap of office park around it not occupied by neighbor Intuit, Google is expanding the Mountain View Googleplex to the west — and, more controversially, to the east, on land owned but poorly used by Nasa. Ignore the happy talk about Google and Nasa's scientific partnerships; those are an obvious fig leaf to cover the use of public land by a private entity. (Let's not even get started on Larry Page, Sergey Brin, and Eric Schmidt's sweetheart deal to park their party plane on Nasa grounds.) Google has grown to be a powerful employer in the Bay Area, and its wealthy executives donate freely to local politicians, so we should hardly expect the powers that be to stop it. What's good for Google is good for America, or so we'll be told.

What ought to stop this search-engine sprawl: Googlers' own consciences, if they are still guided by the "Don't be evil" slogan. Developing new offices on the very fringe of Bay Area's suburbs, on areas that used to be wetlands, or neighbor the fragile ecosystems, is unconscionable. Despite the perk of free shuttle buses, most Googlers still drive carbon-emitting cars to work.

The Bay Area's infrastructure allowed Google to blossom. The region has asked far too little of it in return. Google should commit now to funding the extension of Santa Clara County's light-rail system through its new campus and its old one. It should also expand in cities like San Francisco, already served by public transit, rather than shuttle its workers 40 miles each way. Eliminating energy expended in transportation is far more productive than finding clever ways to achieve marginal efficiencies.

The environmental impact is one thing. But the business impact is another. Google's executives should also ask themselves: What kind of company do they want to be? Do they want to remain cloistered from the world, or engaged in it? Facebook CEO Mark Zuckerberg chose to place his company in downtown Palo Alto, with all the difficulties that poses; his choice meant that his workers rub shoulders daily with Stanford students, entrepreneurs, venture capitalists — and, shockingly, people not involved in the tech industry. On the Googleplex, Googlers live in a world of sameness, with people who never challenge their technology-über-alles worldview.

Larry and Sergey have built themselves a candy-colored bubble on the outskirts of Mountain View. By inflating it, as they've chosen to do, they only increase the risk that a competitor more in touch with the real world will pop it.

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Wed, 04 Jun 2008 17:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5013235&view=rss&microfeed=true
<![CDATA[ Details on Google's new campus at Nasa's Ames base ]]> Google finally announced details of its plans to build a new campus on property owned by Nasa at the space agency's Ames Research Center. The ongoing partnership with Nasa was first announced three years ago. The initial terms of the forty-year lease peg rent at $3.66 million a year, with adjustments to the rate based on property-value assessments and up to five 10-year extensions to the contract. Construction isn't due to begin until 2013, with Nasa approving any designs. Proposed amenities beyond office space on the 44-acre plot will include dining, day care and recreation facilities. Not to mention that the Googlejet, the party plane jointly owned by cofounders Larry Page and Sergey Brin and CEO Eric Schmidt, will be that much more conveniently parked at the Moffett Field spot that the troika already rents for $1.3 million. Their rental isn't part of the deal, but isn't it convenient that they can negotiate with the same helpful government officials to fill their needs for both work and play?

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Wed, 04 Jun 2008 13:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5013165&view=rss&microfeed=true
<![CDATA[ Facebook employees lived in San Francisco while collecting Palo Alto rent subsidy ]]> Facebook employees who have lost a $600/mo. housing subsidy for living in Palo Alto may want to point the finger at their new adult supervision, COO Sheryl Sandberg, but a tipster tells us they only have themselves to blame:

A friend of mine who works at Facebook told me that they have recently revoked the $600/mo. subsidizing of rent in Palo Alto because too many employees were banding together in groups of 4 or 5, renting a "chill pad" in Palo Alto, and pocketing the rest. Some pocketed as much as $300/mo. My friend told me the bandits [were] actually living in SF.

"Bandits" indeed. The whole point of the Facebook housing subsidy was to foster community by keeping Facebook employees living near each other in Palo Alto, in walking distance of headquarters. Ganging together to rent small apartments in Palo Alto while living in San Francisco is fraud, plain and simple.

But should we be shocked it happened? Many Facebook employees, some of whom make as little as $34,500 per year, are cash poor, and even the better-paid employees can hardly afford a Palo Alto mortgage. Zuckerberg's resistance to selling out has kept the company independent, but it also means employees' shares are only worth something on paper. Keeping Facebook independent may validate Zuck in his quest for peace in the Middle East, but some of his overeducated, underpaid, Camus-reading troops would prefer that their Meursault just shoot the Arab.

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Tue, 03 Jun 2008 09:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5012642&view=rss&microfeed=true
<![CDATA[ Facebook's cancelled housing subsidy puts squeeze on Palo Alto landlords ]]>

Rumor has it Facebook will no longer pay its employees a $600/mo. housing subsidy for living in Palo Alto. The move comes off as a cheap blow against employees, but it's not. The Craigslist ad in the image above illustrates who the cost-cutting move actually hurts the most: not Facebook employees, but their landlords, who just lost a pack of tenants willing to pay $600 more than anybody else. Say the apartment hunters who put up the ad: "We are looking to pay less than $3k/mo for a 3BR, especially since the Facebook subsidy is gone now."

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Mon, 02 Jun 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5012212&view=rss&microfeed=true
<![CDATA[ Gurbaksh Chahal's swingin' bachelor pad in the sky ]]> When we heard that BlueLithium founder Gurbaksh Chahal bought a $6.9 million penthouse, we figured he'd go with something tastefully modern to match the building and his taste in slim suits and slimmer ties. But no, oh no. Think animal skins; a headboard and coffee table monogrammed with his signature "G;" and actual chintz upholstery on the dining room set, which a cheap-looking but showy chandelier hovers over. It's like a pileup on the midcentury-minimalism and rococo-inspired Gucci decadence highway.

His self-aggrandizing website is muted and subued in its design by comparison, and that's saying something. Seems Chahal didn't bother to spend any of his millions on a subscription to Architectural Digest or Wallpaper. (Photo via SFLuxe)

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Mon, 19 May 2008 13:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=391809&view=rss&microfeed=true
<![CDATA[ Commercial real estate vacancies show no sign of dot-bomb 2.0 ]]> transamerica_pyramid.jpgRecent reports from local real estate trackers put the amount of office space relinquished by local companies in the last quarter at the highest it has been since the third quarter of 2002 — 436,933 sq. ft, according to commercial broker CB Richard Ellis, or the equivalent of nearly all the space in the Transamerica pyramid. The East Bay and the South Bay also saw an uptick in vacancies. The bankruptcies of Sharper Image, Pay By Touch, and RedEnvelope helped push up San Francisco's vacancy rate, but South of Market remained an untouched bubble of business leases, thanks to expansion by Monster.com, Advent Software, and Splunk. (Photo by Thierry)

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Tue, 13 May 2008 12:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=390063&view=rss&microfeed=true
<![CDATA[ Austin, the retirement home for aging software companies ]]> Borland's new homeBorland has found cheaper rents in Austin, Texas, a regulatory filing reveals. Cheaper rents, but costly obscurity. Had anyone even heard that the software maker had moved its headquarters from Cupertino? Or heard from the company, period?

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Wed, 30 Apr 2008 16:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=385921&view=rss&microfeed=true
<![CDATA[ San Francisco landlords Kip and Nicole Macy allegedly falsified emails to defame pesky tenant ]]> New details have emerged in the landlord-tenant dispute featuring Palo Alto couple Kip Macy, a software engineer who's worked on FreeBSD, and wife Nicole Macy, a local realtor. Emails were purpotedly fabricated in the name of tenant Scott Morrow, even though he told prosecutors that he has no email account:

When a court ruled in Morrow's favor in the eviction case, a lawyer at the firm representing the Macys got an email purportedly from the tenant that read, "One day you are going to come home to the Victorian house ... and find (your three children) missing. Then each day a package will arrive with a piece of them. You are f- with the wrong person."
Now a city of renters has turned to Craigslist to exert their anger at the innocent-until-proven-guilty Nicole Macy. ]]>
Mon, 28 Apr 2008 17:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=384970&view=rss&microfeed=true
<![CDATA[ FreeBSD developer Kip Macy arrested for tormenting tenants ]]> Kip Macy, a software developer well-known in FreeBSD circles, purchased 744-746 Clementina in San Francisco's SoMa neighborhood with his wife Nicole for $995,000 in 2005. The couple then moved to evict the tenants to replace them with renters who would pay more, which would be a violation of San Francisco rent-control laws and California's Ellis Act. Now they've been arrested after allegedly terrorizing residents who protested:

When one of the tenants, Scott Morrow, successfully fought eviction, the couple allegedly told workers in September 2006 to cut the beams that supported his apartment's floor. They also shut off Morrow's electricity, cut his phone line and had workers saw a hole in his living room floor from below, prosecutors said.
The landlords now face multiple felony charges of conspiracy, burglary, grand theft and stalking. And here we thought open-source developers were relaxed about property rights. ]]>
Thu, 24 Apr 2008 13:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=383763&view=rss&microfeed=true
<![CDATA[ David Hayden's Pacific Heights manse for sale after foreclosure ]]> Serial entrepreneurial failure David Hayden has had his home transfered to boutique bank Robertson Stephens under a Sheriff's deed — which means that the property was seized to pay debts. The transfer is so new, realtor Bernadette V. Lamothe hasn't even had time to have the place properly staged judging by interior photos. It's now for sale for a mere $14.9 million through Sotheby's. Prospective buyers won't just get an opulent home with fantastic views, but a piece of San Francisco history.



The address has been a staple of local high society since at least 1922. It also pops up The Other Side: An Account of My Experiences with Psychic Phenomena, by James A. Pike — leading some credence to suggestions that the location may be cursed.

For instance, the place was owned and occupied by local shipping magnate John Traina and romance novelist wife Danielle Steele. But until 1981, Traina lived there with wife Diane "Dede" Traina — until, in a much-publicized series of divorces and weddings, Ms. Traina ended up with dairy magnate Al Wilsey and Mr. Traina ended up with Steel — leaving Wilsey's wife Pat Montandon in the lurch. Much of this was eventually recounted in Sean Wilsey's memoir Oh for the Glory of It All.

In 1989 the Traina-Steels put the house on the market for $5.5 million, and Hayden purchased the place in 1990. In the ensuing decade, Hayden managed to bury himself in up $38 million in debt tied to worthless Critical Path stock loaned by personal bankers and investment managers Robertson Stephens. By 2002 Hayden was accusing the bank of mismanaging his assets as the company moved to foreclose on the property while itself being put up for sale. Nonpayment of rent and taxes has since become a pattern of Hayden's.

I'm not sure which would be the more ill-starred investment — buying the possibly haunted house or investing in Hayden's latest venture, a resort community for the ultra-rich.

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Fri, 18 Apr 2008 18:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=381707&view=rss&microfeed=true
<![CDATA[ Gurbaksh Chahal buys $6.9 million penthouse ]]> BlueLithium founder Gurbaksh Chahal, who flipped his online-advertising startup to Yahoo for $300 million, recently purchased a penthouse suite at the Infinity on Rincon Hill for $6.9 million according to the San Francisco Business Times. I'm not exactly sure who SF Luxe's Damion Matthews is proclaiming confirmed bachelor Chahal most eligible for — my head is starting to hurt trying to parse exactly what Matthews means by "ladies." Can't get enough of the adorable egoist? His recently released self-promotional YouTube video after the jump.

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Mon, 14 Apr 2008 10:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=379471&view=rss&microfeed=true
<![CDATA[ Eco ego-inflater now available at home ]]> Have you already bored all your remaining friends with how many miles per gallon your Prius gets? San Francisco architect Michelle Kaufmann has the answer for you: prefab homes labeled with "sustainability facts" like CO2 emissions, energy consumption, and thermal conductivity. Be sure to note this at Mill Valley cocktail parties between swigs of your planet-killing plastic bottle of Fiji water.

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Fri, 11 Apr 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=378736&view=rss&microfeed=true
<![CDATA[ Bay Area hit hard by mortgage foreclosures ]]> While the whole country has been hit hard by the subprime mortgage crisis, with sky-high housing costs the Valley and surrounding area have also felt the pain. How bad is it? HotPad's interactive heatmap of local foreclosures show eastern counties with more than one in 150 foreclosures. Surprisingly enough, there are few in San Francisco, but that probably has to do with most of the population renting — with rents going up, how about an eviction heat map? (Via Good Morning Silicon Valley)

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Tue, 08 Apr 2008 19:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=377568&view=rss&microfeed=true
<![CDATA[ Great place for a startup: rents up 10.3 percent in San Francisco ]]> Apartment.jpgThe best advice you got from successful entrepreneur Patricia Handschiegel? "Don't spend." Good luck with that if you're living in San Francisco. Bootstrapping entrepreneurs and everyone else have to live somewhere and if its in the foggy city its getting yet more expensive for many. San Francisco rents increased 10.3 percent in 2007. According to Curbed, that's the highest rate increase in the country. Rents increased only 7.7 percent in 2006 and a mere 3.8 percent in 2005. Over 60 percent of San Franciscans rent, and it may be time to look into buying for those with savings — on the flip side, home prices fell. Remember the good old days before Google bought YouTube for $1.6 billion? (Photo by greencandy8888)

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Tue, 08 Apr 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=377261&view=rss&microfeed=true