Details: 5 bed/4.5 bath 3,884 sq ft house, 7,039 sq ft lot, 2010 construction
Description: Spectacular NEW construction in prime Santa Monica features nearly 4000 sq ft, 5 bedrooms, 4.5 baths. Volume ceilings, bright open plan, gorgeous 8' mahogany doors, distressed 6" hickory espresso hardwood & marble floors. Custom cook's kitchen features granite counters, tumbled stone accents, huge center island, state-of-the-art stainless steel appliances including double oven, microwave, six-burner gas stove. Spacious fam room w/ cozy fireplace opens to huge outdoor patio area, heated pool and spa complete w/ Jandy control system. Exquisite master suite w/ volume ceilings, custom spa retreat-like bath with corner tub, double vanity, over-sized shower, dressing area, massive dual closets, private balcony and ocean views. Three additional upstairs bedroom suites. 1st floor bedroom suite ideal for Maid's or home office-den. Custom designer finishes throughout w/ great attention to detail. Wired for surround sound & state-of-the-art electronics. Many GREEN design features. A MUST SEE!
Lot Purchase: 4/20/07 - $957,000
Listing History: 12/27/10 - $2,295,000
SOLD: 2/25/11 - $2,235,000
Maybe there is something that I am missing here but I don't see how this developer didn't take a big loss on this. If you take out the cost of the land, the buyer just paid $329/sq ft for the construction on its own. Unless this was really crummy quality, I figure the all in build cost isn't too far away from that number. Then think about all the other costs. They held the land for for almost 4 years. There is a big real estate agent commission check to write, there is the construction loan interest, property taxes, etc, etc. The one thing I will say is that the developer did a good job of listing at a realistic price which allowed the sale to happen quickly. No point in listing way too high and letting the listing get stale and then having to rent it out.
As far as I have seen, there haven't been too many of these types of wretched, overbuilt monsters in 90405 so far. If I lived there I would be somewhat disappointed to see the spec palace type construction. However, longer term, it may be a testament to the 90405 value and a sign that the area is continuing to attract more wealth.
I looked at this house and was impressed with the quality of construction. A Russian guy had bought it for his son as a rental, then tore it down and built with all cash (he was very verbose in the open house). So no carrying costs, and pretty good finishes and a solid flexible floorplan...although the scale of the house is really wrong is so many ways....
ReplyDeleteThe addition of a pool was curious, since it left no grassy play area for the backyard.
I did see lots of young couples looking at the house, all with their parents in tow...guess thats who will be providing the cash
If you were impressed with the quality then this guy is going to take a big loss. Even if he did it all cash, the loss is still there.
ReplyDeleteAs for the profile of those looking at open houses, I find it fascinating. Great multicultural, multi-generational experience. Last weekend ran into a full on Asian family (kids, parents, grandparents), younger white couple, middle eastern couple with baby, lone old white guy...all at the same house at the same time!
Take a good look, they are your competition.
yes, its really worth it to go to open houses to see who is looking...and presumably buying these days.
ReplyDeleteI think the Russian did take a bath on this house....finishes were not my style, but very nice quality work. Probably cost him around 800K to build it, so he may have eeked out a small profit.....but not a lot.
$800k to build it? That would be $206/sq ft. Seems too cheap. I don't think you can build good quality new homes for that cheap.
ReplyDeleteWarchest, you may be right about the spec costing more than $206/ sq ft to build, although he is a large apartment bldg owner and prob. got some of the labor on the cheap.
ReplyDeleteMaterials are another story....