Overview
Mark Zuckerberg recently made a big splash on the islands of Hawaii when news broke that he had purchased 700 acres of land on the North Shore of Kauai Island in 2014. Already viewed by many as an influential figure in the tech and entrepreneurial worlds, Zuckerberg quickly became a topic of conversation throughout the Hawaiian Islands.
But how much land does the Facebook co-founder actually own in Hawaii? This article delves into the different aspects of Zuckerberg’s land purchases, including when the deals were completed, how much the acreage is worth, and the impact of his Hawaii land on the state economy.
Initial Acquisitions
Zuckerberg’s buying spree began in November 2014, when he purchased two large chunks of land on the North Shore of Kauai – one of the main islands of Hawaii. The first parcel of land he purchased was 363 acres of ocean-view property for some $53 million. The second land purchase followed in May 2015, with Zuckerberg paying $45 million for the adjacent 337 acres.
These purchases put Zuckerberg in control of the 700 acres of picturesque Hawaiian land. It is unclear what Zuckerberg’s plans are for his Hawaii land, but some speculate that he may be developing the acreage into a private estate or may use the land for conservation purposes. What is certain, however, is that this land provides a stunning view of the Hawaiian landscape and will be well cared for as part of Zuckerberg’s property.
Economic Impact
Zuckerberg’s land purchases have had an immediate impact on the local Kauai economy, with the deals boosting employment for land appraisers and brokers, as well as expanding local construction employment. The properties also prompted a major investment from Facebook lawyer David Kramer, who purchased 115 acres of adjacent land for $11 million.
Local business owners appear to welcome Zuckerberg’s land purchases as well, with some believing that the presence of a famous tech entrepreneur will bring additional tourism and economical benefits to the Kauai community.
Worth of the Land
With 700 acres of ocean-view property, Zuckerberg holds the title to one of the most picturesque and expensive pieces of Hawaii. According to Kauai County officials, the land is worth an estimated $50 million.
This estimate suggests that Zuckerberg’s $98 million total purchase is likely to exceed the average cost-per-acre for Kauai ocean-view land by about 20%. The cost-per-acre for Kauai land not located on the ocean, meanwhile, is estimated to be $30,000, compared to the much higher cost-per-acre of $75,000 for ocean-view land.
Real Estate Investments
Zuckerberg’s interest in Hawaii real estate does not stop at Kauai. In November 2015, he purchased a $100 million beachfront estate called Pila’a Beach. The estate is located on the island of Kauai and measures almost 400 acres in total. It includes a mile of beach frontage and other picturesque Hawaiian scenery.
The purchase of the Pila’a Beach estate only further bolsters Zuckerberg’s Hawaiian real estate profile. In addition to this estate, he already owns six residential properties, four of which are located on the North Shore of Kauai. All of these properties are situated on ultra-expensive beachfront land, making their combined worth likely exceed some $250 million.
Political Implications
A big purchase of this size brings to light the potential political implications of Zuckerberg’s large land acquisitions. Hawaii has strict laws on land redistribution, with owners now responsible for managing their own land and paying hefty taxes on their property.
Additionally, citizens of the Hawaiian islands may be worried about how Zuckerberg’s large land acquisitions will affect local businesses. Currently, Zuckerberg’s purchases appear to be bolstering the Kauai economy. But many are concerned that these are all short-term gains, and that this type of large-scale buying spree could potentially drive up the cost of local real estate beyond what the average Hawaiian citizen can afford.
Environmental Considerations
Another concern for local residents is how Zuckerberg’s presence will affect the environment. Particularly, citizens are worried that the influx of builders and developers as a result of Zuckerberg’s land acquistions may cause catastrophic damage to environmentally sensitive areas such as rivers, reefs, and other habitats.
The potential effects of Zuckerberg’s dwellings on the environment have yet to be fully understood, with the billionaire’s conservation interests so far only being speculated. But any big construction and development projects are likely to have an effect on the environment, something which Hawaiian citizens are likely to be particularly conscious of.
Conservation Efforts
Though the environmental implications of Zuckerberg’s land acquisitions remain unknown, what is clear is that he has expressed a dedication to conservation. He has dedicated part of his Hawaiian land for conservation, and has also partnered with Conservation International in order to promote ocean conservation.
Ultimately, Zuckerberg’s plans for his Hawaiian land remain to be seen. But whether they include residential, commercial, or conservation developments, it is undeniable that the Facebook co-founder’s Hawaiian land purchases have already had a profound impact and will likely continue to do so in the future.
Hawaii Land Donation
In March 2021, it was announced that Zuckerberg had donated 6,000 acres of land on Kauai to a conservation non-profit organization called the Kaua’i Legacy Land Trust. This donation represents a significant portion of the 700 acres of land he owns on Kauai and is the largest private land donation in the history of the Hawaiian island.
This land donation is in line with what many believe are his conservation-minded intentions for this land, as well as his commitment to preserving the natural beauty of Hawaii. The donation is also indicative of what is possible when people with significant amounts of wealth are committed to actively protecting and preserving the environment.
Community Support
Local Hawaiian citizens have been overwhelmingly supportive of Zuckerberg’s land donation. While much of the world has come to know him as the CEO of one of the most powerful tech companies on the planet, the people of Kauai have come to see him as generous philanthropist who wants to protect and preserve the Hawaiian environment.
The Kaua’i Legacy Land Trust, which will now manage the donated land, has expressed immense gratitude for Zuckerberg’s donation and its potential to protect the region’s precious landscape. It is believed that this land donation will benefit the community by providing resources for conservation efforts and outdoor recreational opportunities.
Legal Issues
Any large-scale land purchases in Hawaii come with a series of legal considerations, and Zuckerberg’s deals were no different. Local law requires that land purchases must be for development purposes rather than for profiting from the sale of the land. As such, Zuckerberg could face fines and other penalties if he attempts to sell the land for more than what he originally paid for it.
Fortunately, the nature of Zuckerberg’s purchases and history of conservation involvement appear to indicate this is not his intention. But any sale of Hawaiian land is closely monitored by the local government, so Zuckerberg must continue to remain in compliance with these laws and regulations in order to avoid any costly legal issues.
Hawaii Tax Benefits
Hawaii’s government has strict tax laws, with owners of the island’s larger land parcels facing hefty bills. In Zuckerberg’s case, his Kauai property is valued at around $50 million and he pays an estimated $600,000 every year. This amount is significantly lower than what he would have to pay in mainland US states, with his total taxes likely amounting to a fraction of what he would pay elsewhere.
The Hawaiian government also offers generous tax credits which allow property owners to write off up to $100,000 in deductions every year. This substantial benefit may be the reason why Zuckerberg continues to invest in Hawaii, rather than spend his money buying land on the mainland.
