WOW! $18 MILLION…THE MARKET IS SOARING!

WOW! $18 MILLION…THE MARKET IS SOARING!

1942 The Strand is freshly on the market for $18,000,000.

That is a big price tag for a home built in 1913, even if it is on The Strand.
However, its positive attributes are its northern Hermosa location, its corner/walk street situation and its 6,632 square foot lot size. Even after city mandated building set backs and lot coverage rules…you can build a mega-mansion on this lot. The value is in the dirt, and this lot’s per dirt square foot is priced at over $2700. A very similar property on a corner, with a 6,200 sq. ft. lot sold in 2012 for $5,850,000. If you compare the two, that’s some extensive inflation.

HB1

While the Beverly Hillbillies may have struck it rich on oil, the long-term Strand owners are getting filthy rich on simple dirt, literally. The consistent indication of this is the continuous rise in Strand property prices, even during the downturn. While 99% of the country was watching prices plummet, the rarity of Strand properties has kept their value on the rise. With only 300 Strand homes from southern Hermosa to northern Manhattan Beach; the imbalance of supply and demand incredibly favors demand and defies all laws of rationality and economics other than that of supply and demand. In fact, the South Bay Strand is pound for pound likely the most expensive beachfront dirt in the country.

Since 2009, there have been approximately only 30 single-family Strand home sales, 18-20 of them listed on the market and 10-12 were off-market sales. It’s not surprising to see almost 1/3 of the Strand sales happen off-market, without the public even knowing. With minimal supply, high end buyers will often pay the price necessary to procure on opportunity to own a piece of gold…I mean dirt.

Some of the most recent notable sales are:

2666 The Strand Sold for $14,800,000

This was a unique property. It was a triangle lot with the long side of the triangle located on the front part of the lot, giving it a double lot feel for a fraction of the price. This lot was purchased for $6 Million in August 2011
and the home was demolished. In October of 2013, the 7000 square foot newly constructed home sold $14.8M. That’s $8.8M more than the dirt acquisition and a healthy mark up. Can you say jackpot!!!!!!

HB2

2909 The Strand Sold for $12,513,962

This 2012 purchase was a bargain comparatively, since it is situated on a 6,596 lot with an almost 10,000 foot mansion on top. This one is what we call a ginormous home.

HB3

3001 The Strand Listed for $14,900,000

This one has been on the market with 2 different brokers over the last 320 days. That’s basically 1 full year. It originally came out at $13,900,000 and didn’t sell, so they raised the price one million dollars. It’s an interesting strategy, however I have seen it work.

HB4

As you can see, if you’re lucky enough to own on The Strand…you’re lucky enough!

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Post by Darren Pujalet

Darren has written 288 articles.

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