Last week a gorgeous “zen-like” contemporary home sold for a big number in the sand section of north Hermosa Beach at 230 34th Street. It closed at a whopping $5,250,000, and while we have become numb to high priced sales by the beach this property stuck out because of its size and because it is NOT located in Manhattan Beach. Although the home is brand new, it is small for the price at only 2,773 square feet. Per the MLS and excluding Strand sales, this is house broke the record for new construction price per square foot (PPSF) in the Hermosa Sand Section at $1,893/sf.
The next highest PPSF sale was $1,744/sf set last year by…230 34th Street! So this home has certainly been burned into our minds here at Manhattan Pacific Realty, and it is quite odd for a home to sell twice in under a year at record breaking prices (as well as the same listing agent both times…even though the first buyer had different representation when buying). Hmmmmm…
So if we took the last new construction record on PPSF/non-Strand sale, it drops to $1,340/sf set by 1517 Hermosa Avenue town home back in December of 2015. The 34th Street home is breaking the previous record by almost 30%!
Regardless of this home selling twice in under a year, the 34th Street 2015 sale really set the market for north Hermosa. And it looks like high-end demand is slowly moving south from Manhattan Beach to Hermosa. A spec sale that benefited from that new record was 132 33rd Street that sold for $5,480,000 back in April. The developer maxed out the lot with the home boasting 4,800 square feet which is a much more reasonable $1,141/sf, but it still was the 5th highest Hermosa sand sale ever, excluding the Strand per the MLS.
These sales in turn have pushed up lot prices for street to alley lots in the far north Hermosa sand streets. See 248 34th Street, a tear down (currently being rented), which sold in June for $2.6 million in an off-market transaction.
It will be very interesting to see what happens in the north Hermosa Sand Section in the short and medium term, but what we can take away from the recent activity is this…
- The steep streets of north Hermosa between 35th Street and Longfellow (with Palm to the west and Highland to the east) offer amazing views that are appealing to high-end buyers. And by some arguments, the views are exponentially better than Manhattan Beach walk streets due to our favorite Hermosa building code…the roof top deck (not legal in Manhattan).
- Home artistry and architecture now count more than it has in the past for Hermosa Beach. The 230 34th Street sale shows that sophisticated, high-net worth buyers value beautiful and well-thought out homes…and they will pay a premium for it.
- As buyers get fatigued with the sky-high prices of Manhattan Beach, look to north Hermosa to steal away some of those buyers. If you can buy a comparable lot/home minus the walk street, but with a better view at half the price, we believe people will gladly pay to be in “Manhattan Beach south”…cough cough…north Hermosa.
Exciting times if you are a home owner in North Hermosa, and perhaps a welcomed new home option for buyers that cannot wrap their head around Manhattan Beach prices. Look for new updates on this area down the road.