One of the results? Real estate prices are surging in Silicon Valley. Mark Zuckerberg, for example, recently plunked down $7 million for a home in Palo Alto, Calif. As you can see, it’s not what you’d expect for $7 million. The drab home offers five bedrooms and 5.5 baths across 5,617 square feet.
Not that Zuckerberg needs the room — he probably spends much of his time at Facebook HQ, building his global empire.
And Menlo Park, Calif. — the home of said headquarters — also has seen surges in real estate values. According to data from Trulia, a top real estate website, the average home price for the area is $1,120,231 — including homes from the less desirable areas of town.
So what can a few million bucks buy for you in this up-and-coming tech town? Trulia helped me out and came up with these options:
3 Patricia Place, Menlo Park: $3,999,999
4,961 square feet
Commentary: It’s perfect for an early Facebook employee who has the cash to spend on something with incredible street appeal. It’s not as big or pricey as Zuck’s home, but it’s a formidable competitor. And that’s important in Silicon Valley.
523 Encina Avenue, Menlo Park: $2,490,000
3,500 square feet
Commentary: This is spacious and right on the border of Menlo Park and Atherton. It also has a fantastic bonus Facebook tie-in: It’s close to the home of Sheryl Sandberg, the company’s billionaire chief operating officer.
830 Cambridge Avenue, Menlo Park: $2,450,000
2,610 square feet
Commentary: This is a great home for a Facebooker who likes a more upbeat vibe. This home straddles the Menlo Park/Palo Alto border and is within walking distance of the restaurants and shops that line University Avenue in downtown Palo Alto. This is especially important for those engineers who want to be close to venture capitalists — in case they decide to launch a cool startup.
72 Ralston Road, Atherton: $7,950,000
9,345 square feet
Commentary: This is less house, more estate. It has a spectacular pool and spa, and it’s large-family-friendly, sporting eight-and-a-half bathrooms. If you are employee No. 10 through 100, you might be eying this Atherton offering.
374 Oconnor Street, Menlo Park: $1,350,000
1,000 square feet
Commentary: For a cool million bucks (and a lot of change), this 1,000-square-foot tear-down opportunity in a prime Menlo Park location can be yours.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”, “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.