Billionaire entrepreneur Bill Gates is streamlining his impressive property portfolio by offering a segment of his expansive waterfront estate in Medina, Washington. This recently listed property, a charming cottage neighboring his renowned Xanadu 2.0 compound, is seeking a buyer for $4.8 million. Acquired by Gates in 1995 for $1 million, this particular residence, along with several others, was strategically bought to enhance the privacy surrounding his primary, technologically advanced mansion. This move highlights a trend of high-net-worth individuals adjusting their vast asset collections.
The cottage, an olive-green structure originally constructed in the 1950s, has undergone significant modern updates while preserving its classic charm. Perched on a picturesque hillside, it offers stunning views of Lake Washington. Spanning 2,780 square feet, the home features four bedrooms and two and a half bathrooms. Although Gates purchased the property shortly after his marriage, there is no indication that he ever resided in it. Instead, it served as a buffer for his much larger, 66,000-square-foot main residence, Xanadu 2.0.
Inside, the cottage boasts an inviting, open-plan living area characterized by elegant arched doorways and lustrous oak flooring. The living room is anchored by a large picture window and a cozy fireplace, creating a warm and bright ambiance. The adjacent dining room extends to a covered deck, perfect for outdoor entertaining. Both the living and dining areas are equipped with fireplaces, adding to their comfort and appeal. The kitchen has been thoughtfully upgraded with contemporary stainless-steel appliances and sleek granite countertops. The master suite provides a private retreat, complete with French doors that open onto its own secluded deck. The lower level accommodates three additional bedrooms, each featuring a fireplace, offering versatile spaces that could function as guest quarters, a home office, or a creative studio.
Gates initiated the development of his Medina compound in 1988, investing $2 million in a wooded hillside that would eventually become the foundation for Xanadu 2.0, a name inspired by the opulent estate in the film “Citizen Kane.” The technology mogul poured over $60 million into this remarkable property, which was meticulously designed by Bohlin Cywinski Jackson architects, with interiors crafted by the late French architect and designer Thierry Despont. The estate is a marvel of engineering and design, featuring seven bedrooms, 24 bathrooms, a majestic domed library, a 60-foot swimming pool equipped with an underwater sound system, and a grand reception hall capable of accommodating 150 guests. Today, the estimated value of this iconic estate exceeds $130 million.
Over the subsequent two decades, Gates systematically expanded his dominion by acquiring approximately a dozen adjacent residences, varying in size and grandeur, ultimately amassing a substantial 10.5-acre footprint. In 2024, he successfully offloaded one of these ancillary properties for $4.85 million, demonstrating continued activity in the local real estate market. He maintains ownership of several other surrounding properties through a limited liability company, further solidifying his control over the expansive area. This strategic approach ensures the enduring privacy and exclusivity of his primary estate.
Xanadu 2.0 represents just one crown jewel within Bill Gates’s vast real estate collection, which is conservatively valued at over $150 million. His diverse property portfolio extends far beyond Medina, encompassing residences in prestigious locations such as Rancho Santa Fe and Indian Wells. It also includes a stunning oceanfront retreat in Del Mar, an exclusive residence within Montana’s Yellowstone Club, and a comprehensive equestrian compound situated in Wellington, Florida. These acquisitions collectively underscore his discerning taste for luxury properties and his significant investment in high-end real estate across the United States.
This current listing offers a rare glimpse into the real estate dealings of one of the world's wealthiest individuals, as he continues to refine his substantial property holdings. The sale of this cottage suggests a careful recalibration of his assets, possibly to optimize his investment strategy or simply to reduce the maintenance burden associated with such a vast portfolio. For potential buyers, this presents a unique opportunity to acquire a piece of property connected to a legendary figure, located in a highly desirable area with historical ties to a tech visionary.