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Per reader request, today’s blog will give a breakdown of lot deals versus new construction in Manhattan Beach (basically, what does a developer do). There is a ton of new construction going on in this area and purchasing a “land value” deal has a lot of nuance and risk. These examples are not meant to be exact numbers; these are rough numbers to keep the reading light. Let’s dive in! East Manhattan Beach This portion will be the Manhattan Heights/Liberty Village area of east MB (area 146 on the MLS). Since prices are lower and finishings tend to be cheaper, we’ll assume $250 per sq. ft. to build and a 15% budget for soft costs. Recently,
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Short answer: I am not sure. New York A recent report authored by appraiser Miller Samuel Inc. found that Manhattan (NYC) condo and co-op sales declined by 25% from last year’s first quarter. It was the largest drop since the 2009 financial crisis. Was the lack of sales due to low inventory much like the greater Los Angeles area? Not according to the report. The average sales price dropped 8% with a lot to blame on the high-end market where overpriced luxury apartments are sitting on the market on average for MORE than a year and a half. When looking at the best indicator, median sales price (emphasis on median, not average), things were not as
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If you read the title and thought, “Well, if the sale was not in Manhattan Beach then it must be the $40,000,000  home on Buggy Whip Drive in Rolling Hills.” That is a good guess but nope, not even close! Hermosa Beach? Nope. Redondo Beach? Getting warmer… The answer is Torrance. The Record Sale Last month, 417 Paseo de la Playa, Redondo Beach 90277 sold for a record $22,650,000. But wait, I thought you said Torrance, Richard? It is in Torrance! The property sits in an area little written about in my blog, but very much a South Bay location, known as Hollywood Riviera. This sub-market (area 128 on the MLS) is within the city of
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If you tuned-in to our live podcast with DIGS Magazine last week, you probably heard me strongly recommending a purchase of an income property before buying your own home. Why? The numbers alone prove income properties to be the better financial move. If you are motivated by money, then you should really consider buying units in the South Bay rather than a single-family home. I am an owner of multiple income properties and choose to rent my primary residence because the numbers pencil that way. My sweet fiancée has even agreed to move into a duplex, triplex, etc. as our first home purchase…with some contingencies of course (like watching Real Housewives every night for the rest
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…That is the question. It is a question I get from my clients repeatedly. The answer? Well, sometimes it is the right call, but oftentimes it is not. Manhattan Beach Case Study To demonstrate this age old new construction quandary, let’s look at some properties in Manhattan Beach, as it is the epicenter of new construction in the South Bay. These examples can also be applied to areas like The Avenues in South Redondo, town homes in Hermosa Beach, remodels in Palos Verdes, and more. Let’s start with East Manhattan Beach. 1467 3rd Street (5-beds, 5-baths, 4,472 sq. ft., 7,466 sq. ft lot) Sold for $2,631,000 Built in 1999 1540 Curtis Avenue (5-beds, 5-baths, 4,400 sq.
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What is a Transaction Coordinator? Hi All! I am taking over Richard’s South Bay Real Estate Blog for the week. For those who don’t know me, I am the behind the scenes gal that you don’t see much, but I am always busy doing something at Manhattan Pacific Realty. I am Richard’s Transaction Coordinator. What is a Transaction Coordinator (TC) you might ask? A Transaction Coordinator is a real estate professional who manages all the disclosures, paperwork, and deadlines involved in a real estate transaction. They are trained in the selling and buying process, and track the progress of a transaction from the opening of escrow until closing. Why is a Transaction Coordinator Important to You?
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Over the past two years, The Avenues in Redondo Beach have remained strong and continued a steady march upwards. New construction looks to be in solid demand and buyers are paying a premium for brand new homes on standard sized lots ranging between 5,500 and 7,000 sq. ft. The 740 Avenue C home, mentioned in my previous blog on The Avenues, closed in spring of 2016 for $2,750,000 which was the sale that gave the area a shot in the arm. As a result, later in the year 713 Avenue D and 327 Avenue F sold for $2,775,000 and $3,100,000 respectively. These sales took The Avenues to record highs for standard lot sizes (only trailing one
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Palos Verdes is BIG. With four cities and unincorporated county areas, there is a lot of ground to cover on The Hill. In this week’s blog, I will attempt to give you a summary of what is happening on the PV Peninsula. Singly-Family Homes Under $1.5 Million are Hot The PV home market under $1.5 million continues to be very hot. With entry-level homes scarce and Millennials coming of age, many buyers are looking to The Hill to get an affordable home with a nice backyard and fantastic schools (and parking!). From January 2017 to January 2018, there were 380 single-family home sales under $1.5 million in all of Palos Verdes. That is almost 32 home
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Interest Rates Rising The stock market has been crazy this week and a large part of it has to do with the interest rates rising significantly. A lot of experts watch the 10-Year U.S. Treasury note where rates have jumped from 2.46% to 2.84% in the first 30 days of the year. That is a massive jump for a somewhat stable security and as a result has some people worried. Now, the 10-Year U.S. Treasury does NOT directly affect mortgage rates contrary to popular belief (my first job out of college was a mortgage broker so I studied this in depth), but the 10-Year is used as a hedge for mortgage investors. Banks and originators of
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The Lot Deals Two new lot deals hit the market this week in the Manhattan Beach Sand Section. An old duplex located at 1613 Highland Avenue sitting on a 1,351 sq. ft. lot asking $1,849,000 and a crumbling concrete pad located at 2613 Crest Drive on a sizable 3,512 sq. ft. lot asking $5,499,000. These new offerings are sure to grab the attention of eager house hunters looking to build their dream home. Will these lots pencil for a motivated buyer who not only wants their dream home but also wants to come away with some equity? Let’s check out the data. 2613 Crest Drive Analysis This lot has been a noticeable vacant lot overlooking Bruce’s
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