$10 mil San Fran house sells to be torn down

In a bit of real estate theater, what once passed as a comfortable four-bedroom 1930’s-era home has launched a bidding war — not for the house, but for the dirt beneath it.

The property at 123 Stockbridge Ave. in West Atherton traded hands for roughly $9.5 million as a 1.147-acre lot. The home brought in 14 offers both from real estate developers and families looking to build something from the ground up.

Atherton, a wealthy enclave south of San Francisco, has long been a playground for the ultra rich, counting people like Steph Curry and tech investor Marc Andreessen as residents. The zip code is the second priciest in the country, according to data released by PropertyShark in October.

According to the listing agent, Gina Haggarty from Compass, “the home had no significant value to it.” Buyers weren’t paying for the nostalgic French-Country facade, they were buying the ground beneath it.

The existing 2,830 square-foot home was built in 1936, and is expected to be bulldozed. The listing emphasizes that the value lies in the sweeping land, which is described as “ideal for new construction and building your dream lifestyle.” With lush greenery along the perimeter, and property offers a significant amount of privacy.

What made the sale remarkable was the speed in which it happened. The home hit the market on Oct. 1 for just under $8 million, and went into contract by Oct. 16 for well above the asking price. Records show the property was under threat of foreclosure, with nearly $5 mil still owed on a 2017 loan.

It was, by most standards, a distress sale. But in Atherton’s overheated teardown market, there are no real bargains. Still, some consider this a “steal.” Experts note that the limited availability to tour the property likely drove up the competition.

What’s fueling the surge? Real estate specialists speculate that the AI gold rush is bringing new liquidity to the ultra-luxe Bay Area market, reigniting demand for premium lots.

In a region defined by limited housing stock and sky-high prices, the bidding war reflects dramatic social and economic divides. Lots that were valued for their homes are now just a placeholder for a mega-mansion.