A reader perusing Redfin is a bit shocked to come across the reported sale of 2323 Hyde Street for $9,000,000 two weeks ago, a nearly 9,000 square foot Russian Hill home that was listed for $18,700,000 for most of last year.
The least expensive of three big San Francisco properties accumulated by the Sperlings of University of Phoenix fame and fortune over the past decade, 2323 Hyde Street had been purchased by Peter and Stephanie Sperling in 2003. The home had been listed for $15,000,000 at the time.
And while we can’t confirm the exact purchase price in 2003, we will note a $15,420,495 tax assessed value in 2009 which would suggest a price around $14 million.
So was it really a $5,000,000 and 36 percent drop in value for the Hyde Street house as reported? Yes and no. While 2323 Hyde did in fact sell for $9,000,000 this past November with $225,000 in transfer taxes paid, the buyers were John and Peter Sperling, the co-trustees of a John Sperling Irrevocable Trust. We don’t believe their offer was countered.
Keep in mind that the difference between a $14,000,000 and $9,000,000 tax basis would be about $60,000 a year and transfer taxes for properties valued over $5 million in San Francisco increased at the beginning of this year with the passage of Proposition N.