Kalen,
We have had (and still have, but very limited) quite a few folks come to the area where I live to buy homes with one motive, to tear them down and build what they want. They 'pay' the premium for the pre-existing construction, but the quality of the site is such that it is worth it for them as their plans are all of an ambitious nature. All the guys in the construction business love them.
I have no trouble believing that same scenario existed in this case, but I'm guessing the same thing as you.