In December 2014, a Swedish computer programmer pulled off the kind of real estate purchase that makes even Beverly Hills stop and stare. Just weeks after Microsoft completed its $2.5 billion acquisition of his company, “Minecraft” creator Markus “Notch” Persson paid $70 million in cash for a spectacular hillside mansion. He closed in six days, set a Beverly Hills residential sales record, and beat out Jay-Z and Beyoncé for the keys.
The house came with an infinity pool, a car elevator, an 18-seat theater, designer furniture, and even toothbrushes. For a freshly minted billionaire whose game allowed people to build whatever they could imagine, it was a suitably extravagant purchase.
Twelve years later, Persson is ready to sell. According to the MLS, he has listed the property for $70 million, exactly what he paid in 2014. That price comes after he spent millions adding a recording studio and nightclub, and before accounting for the considerable expense of owning and eventually selling a home of this size.
From Building Virtual Worlds To Buying A Beverly Hills Estate
Persson released an early version of “Minecraft” in 2009. Its blocky graphics were simple, but the possibilities were enormous. Players could gather materials, build houses, explore underground, and collaborate on sprawling worlds of their own creation. The game spread through online communities and videos, turning an independent programming project into an international business.
By the time Microsoft came calling, Persson had already collected hundreds of millions of dollars in licensing payments. He also owned 71% of Mojang, the company behind the game. When Microsoft completed its $2.5 billion acquisition in November 2014, that stake represented $1.775 billion of the purchase price before taxes.
Persson was 35 years old, enormously wealthy, and leaving behind the company that had consumed much of his adult life. Within weeks, he had purchased one of the most conspicuous homes in Los Angeles.
The Mansion Beyoncé And Jay-Z Wanted
The property was the work of Bruce Makowsky, the handbag entrepreneur who became a developer of extravagantly furnished luxury homes. He built it on speculation, meaning there was no committed buyer waiting for the finished product, and put it on the market for $85 million.
Located at the end of a cul-de-sac in Trousdale Estates, the mansion offered sweeping views across Los Angeles toward the Pacific Ocean. Beyoncé and Jay-Z toured the property, but Persson ultimately secured it. As we covered at the time, the winning price was $70 million.
Persson paid $15 million below the original asking price, yet still established a Beverly Hills sales record. His ability to pay cash and complete the purchase in six days brought the transaction to a remarkably quick conclusion.
The sale also spared him the usual process of furnishing a new home. Makowsky had already selected everything, down to the place settings and bathroom accessories. Persson was buying a fully assembled billionaire lifestyle.
Two Pools, A Car Elevator, And $5,600 Toilets
The mansion sits on nearly an acre and contains eight bedrooms. Originally marketed as 23,000 square feet, it is described in the new listing coverage as 22,300 square feet. Glass walls frame the city views, and an infinity pool sits directly beyond the main living room. The primary suite has its own separate pool.
The original amenities included an 18-seat home theater and a car elevator that transported vehicles to underground storage. The bathrooms featured Toto toilets priced at $5,600 apiece, while the furnishings included Hermès pieces, Roberto Cavalli linens and tableware, and a Bentley-designed living room set.
Even the smaller details were extravagant. The home had a candy room, stocked bars, and cases of Dom Pérignon. The sale included eight Oral-B toothbrushes, taking the real estate promise that a buyer could move straight in to an unusually literal level. The archival video tour below, from 2015, gives a sense of the property around the beginning of Persson’s ownership:
He Once Said Someone Offered Him $80 Million
There is another detail that makes the new asking price particularly interesting. In a March 2015 interview, Persson said an anonymous buyer had offered him $10 million more than he paid, just weeks after his purchase. That would have put the proposed price at $80 million.
Persson sounded pleased with the apparent instant appreciation. As he told an interviewer: “At least I know now it was a good investment because it’s worth $10 million more than I paid.”
He kept the house.
Getting $70 Million Back Would Still Cost Him Millions
A sale at the full asking price would produce a $70 million sale price against a $70 million purchase price. It would leave no appreciation to cover the recording studio, nightclub, transaction expenses, or years of property taxes, insurance, maintenance, and other operating costs. Inflation has also reduced the purchasing power of the dollars he would receive.
Even the selling expenses alone can become substantial at this level. Every 1% of a $70 million transaction represents $700,000. The actual terms of any future sale remain to be negotiated, and Persson still needs a buyer willing to pay his asking price.
He did, of course, get 12 years of access to a remarkable home, complete with private recording sessions, parties, and views stretching toward the ocean. But the investment confidence he expressed in 2015 makes for a striking comparison. Back then, Persson thought his new mansion had gained $10 million in a matter of weeks. Today, he is asking someone to pay him what he originally spent.