Billionaires Buy Up Surrounding Properties to Increase Privacy Settings

by on General

Billionaires Buy Up Surrounding Properties to Increase Privacy Settings

Ironically in the same week that Facebook announced the axing of a privacy setting, billionaire Facebook chief Mark Zuckerberg prevented the building of a spectator mansion adjacent to his main 5,617 square-foot home.

Zuckerberg is using a classic buy-and-hold strategy which has been used by numerous billionaires such as Google chief Larry Page and the late Apple CEO Steve Jobs. This approach allows the wealthy to ensure their privacy by preventing the destruction of nearby homes and vetting the neighbors.

Enough Money Speeds Up Time

Most people buy homes when they come on the market, but when you’re Mark Zuckerberg and have a net worth of $19 billion you don't have to settle with such inconveniences. According to the San Jose Mercury News, the 29 year old isn't planning on evicting his now-leasing neighbors, but is enjoying having control over how the properties are marketed and subsequently sold.

The purchase of four Palo Alto, Calif. homes ($30 million) surrounding his home allows Zuckerberg to not only prevent a spec mansion but brought the neighbors a considerably sized bonus. The average Silicon Valley home is worth around $1.8 million. Thus, we can certainly say that the four neighbors of Mr. Zuckerberg made a sizable profit upon selling.

No Trail of Breadcrumbs

Forbes informs us that we won’t find Zuckerberg’s name on any of the property records. The four homes were apparently purchased by a subsidiary group of Iconiq Captial, a San Francisco-based money manager group representing numerous billionaires in the Silicon Valley.

It is common for the rich and famous to purchase properties using entities to allow anonymity. Recall in the mid 1960’s when Disney used numerous dummy corporations to purchase 28,000 acres of Florida real estate for near rock bottom prices to build the world-renowned Walt Disney World.

Forbes states that they can confirm “the first deal closed last December, for the property directly behind Zuckerberg’s main residence; the other three deals closed last month.” One property sold for approximately $5,500 per square foot up from the average $1,000 per square foot.

This isn’t the only secret purchase that Facebook CEO Zuckerberg has been working on. Allegedly a $10 million purchase was made for a San Francisco home in Dolores Park this year. Over $1.6 million in renovations have been put into the home which includes an office, a media room, a greenhouse, a wine room and a wet bar.

Of course no direct ties link Zuckerberg and this purchase.

As California real estate continues to improve, you may be able to expect more of these types of purchases in the future.

Image source: huffingtonpost.com / zimbio.com

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