The South Bay beach cities have been on a tear over the past few years, and there are few cities that have been more white-hot than Manhattan Beach. After seeing end of the year activity, we noticed some similarities between east Manhattan Beach and the south Redondo Avenues. Could they possibly carry the same value?
We decided to take a look at new construction in both areas and pose the question: Are The Avenues on par with value of east Manhattan Beach? The answer, in short, is not quite…but it is closer than you think.
Now before we jump into it, let’s clarify that both areas are completely different in terms of buyer desirability when it comes to location, school districts, and commuting advantages. Many buyers choose Manhattan Beach for easy commute times to the Westside, great schools, and the close proximity to downtown Manhattan Beach. On the flip side, buyers looking to The Avenues like short local commutes, the #22 ranked Redondo Union High School (according to Niche and beating out Mira Costa at #63), and the quaint action in the lovely Riviera Village.
So if you are a new buyer, new to the South Bay, and want a fresh start, we think these areas have comparable features that could satisfy your wants. Both areas are east of Pacific Coast Highway, offer similar size lots (east Manhattan trends in the 7,000 sq ft, while the south Redondo Avenues trend in the 6,000 sq ft), and the new construction sizes can be very similar (3,500 square feet to 5,000 sq ft). We could be stretching here a bit, but why don’t you take a look for yourself…
Here are some new construction sales in east Manhattan Beach:
1430 18th Street
1524 Mathews Ave
1135 18th Street
|$3,300,000 (Sold)||$2,910,000 (Sold)||$2,750,000 (Sold)|
|4,600 Sq Ft||4,684 Sq Ft||3,459 Sq Ft|
|6 Bedrooms||5 Bedrooms||4 Bedrooms|
|6 1/2 Bathrooms||5 1/2 Bathrooms||4 1/2 Bathrooms|
As you can see, there are some really beautiful 3,500 sq ft to 4,700 sq ft new construction homes in the east Manhattan area. There are plenty of homes that are “behemoth” in size in these same locations at 5,000 sq ft and 6,000 sq ft and go in the middle to high $3 millions, but that is normally not a typical size you see in Redondo. With more and more deep pocketed buyers in Manhattan, you are seeing great new construction (like the ones above) that is well thought out compared to their older counter parts, along with not being a McMansion. At the 3,500 sq ft to 4,700 sq ft size, you can see recent sales between $2.75 million and $3.3 million.
Now looking below at our homes in The Avenues, we have broken it into a “sold” and “actives” section. Keeping in the similar sq ft conversation, the sold properties are not nearly as impressive as east Manhattan Beach. To be fair, they are on the smaller side, but these comps trend $500,000 to $1 million less. That is quite a gap. But when you look at the two new construction actives on the market, they are pushing for those east Manhattan Beach prices. Will they get what they want? No one knows. What is interesting is the fact that home owners and investors are building wonderfully beautiful homes on the same level as east Manhattan Beach is something to see. If one of these homes were to sell close to their list price, then that could create a ripple effect across The Avenue’s market. Perhaps it would be like the Manhattan Beach Sand Section town homes, where investors can build new construction with the higher price, and buyers feel the comps are justified to pay the price. It will be interesting to see how those actives shake out.
Here are The Avenues solds and actives:
865 Avenue A
315 F Avenue
|$2,350,000 (Sold)||$2,450,000 (Sold)|
|3,630 Sq Ft||3,300 Sq Ft|
|5 Bedrooms||5 Bedrooms|
|4 1/2 Bathrooms||4 1/2 Bathrooms|
740 Avenue C
849 Avenue C
|$2,900,000 (Active)||$2,890,000 (Active)|
|4,300 Sq Ft||4,020 Sq Ft|
|5 Bedrooms||4 Bedrooms|
|4 1/2 Bathrooms||6 Bathrooms|
All in all, the point is...The Avenues are TRYING to be like east Manhattan Beach. And they might get close. It is not there yet in terms of real comparable sold homes (and yes, we are only looking at new construction inventory), but as east Manhattan Beach continues its climb, we believe that The Avenues will move with them at a slight discount. Both areas offer similar homes that appeal to buyers, and if you are not set on east Manhattan Beach new construction, then south Redondo Beach is a wonderful option to build your own and save some cash.
From an entry level buyers perspective on The Avenues (or if you want to build your own), we love going after smaller starter homes like the cute bungalow on 737 Avenue C. This type of 3-bedroom is amazingly charming, and was a deal at $1.175 million. This we feel offers a fabulous long term purchase. You get a terrific home, and own a lot that might support new construction pushing a value of $2.9 million today. According to our estimates, a smart new construction home built to match the comps in east Manhattan and the “active” Avenue listings would be around a $1 million cost. That would give a homeowner of this cute Avenue C bungalow tons of equity just by building a brand new home. The value should keep climbing over the long term if you are in no rush. It has all the makings of a great place to call home, and a potential smart long term investment! If you love The Avenues, first time home buyers, someone looking to build new construction, or even investors would be silly not to consider a bungalow like this!