$2.2m for First Speedy Speckie

Posted by Dave Fratello on Tuesday, May 17th, 2011 at 4:01pm.

From 'dozer to domicile in 5 months?

That's what they're promising at 2516 Pine, the first of 2 spec homes going up right now on the former double-lot at 2600 Pine.

It's the first of 5 new homes under way that we called the "Speedy Speckies" in a post just a few weeks ago. We were amazed by the rapid progress on all of these homes shortly after escrows closed on nearly simultaneous land deals.

This sketch is our first look at the expected end product. The listing promises 5br and 4.5ba, and while square footage isn't yet listed, you'd expect 3100-3250 sq. ft. or so.

Start price: $2.199m. They estimate completion in 90 days.

It's hard to compare these to any other new construction sales today because, well, there aren't any.

One comparison – if not a formal comp – that pops up is one of the last examples of this builder's work to sell in the Trees: 1901 Poinsettia (5br/5ba, 3200 sq. ft.), which sold for exactly $2.0m in March 2008.

Poinsettia launched at $2.499m in Aug. 2007, but the market was beginning to collapse by then and it was clearly overpriced. Chops began in Sept. 2007, and the listing for Poinsettia was at $2.179m by December and $1.999m in mid-January 2008.

There's a note in the old listing saying, "Show your buyers willing to make full price offers! This price is FIRM" We're going to guess that note applied to the $1.999m price, and not the 6 different offering prices before that. 

A buyer knocked a month later and took it for full price, as instructed.

Looking back now to 2516 Pine, remember that the double lot went for $1.6m, so individual lots were valued at $800k. Between that $800k and a $2.2m offering price, there may be some, er, flexibility – there's a lot of profit built in. No doubt, these speckies will be fascinating to watch.
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