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$9.5‑million listing in West Atherton is a rarity, but 123 Stockbridge Ave. proved to be one of the few places where that price is a bargain. The appeal wasn’t the four‑bedroom, four‑bath French‑Country home itself; it was the 1.157‑acre parcel. “It’s really land value. The house had no significant value,” said Compass listing agent Gina Haggarty, who also represented the buyers. The property is essentially a $9.5 million teardown.
The lot is just over the typical “Atherton acre” (just under one acre). Developers and prospective custom‑home builders were both interested, though Haggarty didn’t disclose which group won. The sale was a rare distress transaction in one of the country’s most expensive ZIP codes. The home hit the market on Oct 1 for just under $8 million and was under contract by Oct 16, a move to pre‑empt foreclosure. Public records show nearly $5 million was still owed on a 2017 loan, and a trustee sale notice had already been posted. The property was not bank‑owned when it closed on Nov 12.
The limited tour opportunities and the distressed status likely helped the lot sell at a slight discount in Atherton’s hot teardown market, according to Ken DeLeon, founder of DeLeon Realty and Atherton specialist. DeLeon notes that interest in Atherton teardowns has risen with tech stock valuations and confidence in the AI rally. A lull in lot sales caused by high construction costs and economic uncertainty ended this year.
For example, a 1.16‑acre lot at 38 Elena Ave. sold for $9.4 million in September 2024 and was resold six months later for nearly $1 million more. If it were sold today, the price would likely be even higher. DeLeon recently worked with a developer eyeing 57 Fairview Ave., a property just under an acre listed for $7.89 million. It closed on Nov 13 for $10.7 million—about a third more than its neighbor sold for a year earlier. “I was surprised the jump was so steep,” DeLeon said. The price is not a profit for a developer but makes sense for a custom build.
DeLeon’s clients building Atherton dream homes pay between $2,200 and $2,600 per square foot. A typical 20,000‑square‑foot estate would cost close to $50 million in construction, plus the $10 million lot. Many affluent buyers are willing to endure a five‑year permitting and construction process for that level of luxury.
“The lack of good Atherton lots, combined with AI‑driven liquidity, will push the luxury market to new heights next year,” DeLeon predicts, calling 2026 the best year in luxury real estate in his 24‑year career. Haggarty also foresees new highs in 2026, especially after the intense year‑end interest in her teardown listing. “People feel more confident buying large properties,” she said.
