San Francisco's AI Boom Fuels Record-Breaking Home Sale Just Beyond the City

Dow Jones08-07 02:01

THE DEAL: A gated estate in California's Hillsborough sold for $70 million -- double the previous home-sale record for the affluent town, according to the listing agent.

After being shopped off-market late last year, the property outside San Francisco officially hit the market for $88 million in February. Listing agent Jennifer Gilson of Golden Gate Sotheby's International Realty declined to identify the buyer, who she said works in the artificial-intelligence industry.

The record-setting sum comes as San Francisco's real-estate market is being fueled by a wave of AI wealth, with buyers rushing to purchase homes ahead of anticipated AI IPOs.

THE SELLERS: Private-equity investor and philanthropist Ted Kruttschnitt and his wife, Alexia Kruttschnitt. The pair told The Wall Street Journal last year that they had decided to sell the home because they were spending most of the year in Palm Desert, Calif.

The couple declined a request for comment on the sale.

THE SPECS: The Kruttschnitts built the home in the early 2000s. It spans roughly 12,400 square feet across three levels and has views over San Francisco Bay. They also built a sports complex on the property with a sunken tennis court, as well as courts for pickleball, volleyball, badminton, bocce ball, horseshoes and shuffleboard.

THE MARKET: Hillsborough, an exclusive enclave around 20 miles from San Francisco, is known for its pricey homes. The previous record there was held by an estate that sold for $35 million in 2022, according to Gilson.

 

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