The star, 44, had been renting a home in Beverly Hills for the past several years (he and Holmes, 28, married last November), but that lease runs out next year, according to the paper.
The new address, which reportedly was not even on the market when Cruise made his offer, is described as a " traditional-style residence."
Originally built as a 10,000-sq.-ft. structure in 1937, the house was expanded four years ago and currently contains seven bedroom and nine bathrooms, say those familiar with the property.
The Cruises will have their privacy: the house sits on 1.3 acres behind gates and a lengthy driveway, and sports a tennis court and a pool.
As for the Cruises' current residence, according to this week's issue of PEOPLE, the compound also serves as a gathering place for Cruise's children with ex-wife Nicole Kidman: Isabella, 14, and Connor, 12. (Suri is 1.) The actor's mother, Mary, 70, also lives there.
"Tom and Katie will get in the kitchen and make this amazing popcorn with chocolate," says a pal, Internet mogul Sky Dayton. "Suri is there playing. Kate feeds her a bottle and then Tom feeds her."
In addition, Cruise and Holmes's pals, Victoria and David Beckham, have bought a multi-million-dollar house only two minutes away. They plan to move in July.
celebrity home photos / pacific coast news