3 Deals on the 'Wrong' Side of Oak

Posted by Dave Fratello on Tuesday, February 1st, 2011 at 11:30pm.

Two of the least expensive properties west of Sepulveda – and we do mean barely west of the highway – have recently made deals, as has a once-distressed newer home that was recently totally redone.

Sure, Oak Ave. is a liability, and the "wrong" (east) side is even more so, but that can be overcome. Just check out the 3 very recent deals – all on the "wrong" side.

Late last week, it was little 2600 Oak (2br/1ba, 800 sq. ft.).

It's short sale that was listed, they said, for land value at $749k, because it was offered "as is" and "needs a lot of work."

Being where it is on Oak, it backs up to a commercial property – actually the offices of one of the bigger brokerages in town, but alas, they didn't get the listing.

2600 Oak first hit the market in October last year, posting a deal around Thanksgiving, but it came back up last week before going pending again – a quiet back-and-forth that is not uncommon with shorties.

The previous sale of the property appears to have been for $800k in August 2004. Public records of that sale seem to have escaped Redfin's supercomputers as well as those of a more common tax-record database that agents access. Our source, surprisingly: Zillow.

Again, 2600 Oak was offered for $749k short – let's see what the lender has to say about the offer that's in. They'd be wise to take anything near full price: A true land deal near $750k might be viewed as an overpay on the east side.

Meanwhile, 1508 Oak (4br/2ba, 1775 sq. ft.) is a bank-owned property also on the "wrong" side of Oak. Going one better than 2600, this one actually has a parking lot for a neighbor on the south side, in addition to a commercial building to the east.

The listing officially launched in early December at $867k, though it had a sign in front and was available as early as October. It was one property featured in "REOs East and West (WoS)" late last year.

It's one of 2 properties in this story that just posted a deal today.

As we said last year of 1508 Oak:

The home itself has no curb appeal. It did fetch $900k back in 2004, though, and it appears to have been upgraded after that. (Ah, the go-go days.) 

Once the past owners got in deep trouble, realizing they'd lose the home, they stripped the fashionable kitchen they'd installed, removed windows, and partly destroyed bathrooms. (A detailed video documentation of the post-foreclosure property is here.)

The current listing says the past homeowners borrowers owed $1.270m by the end... but the latest list price, after a recent cut, is $823k. A new kitchen has been installed; various stripped pieces returned.

1724 Oak (5br/4ba, 3325 sq. ft.) is a 10-year-old home that was neglected by the past owner. It was offered for sale briefly late last Summer, and the listing warned that it needed "a MAJOR renovation" and that "items laying around ... could cause difficulty for some potential buyers to view." It was a mess. An investor grabbed it for $1.060m.

As we said in a "Weekend Opens" review 2 weeks ago:

What's happened here in the past few months is a complete, head-to-toe remodel – virtually everything was removed and replaced. New floors, new kitchen, new baths – far more than a little tidying and fresh paint....
[It's] now a well-rehabbed flip with the utterly familiar layout of a speckie from the last cycle. If you saw a pristine, newer home of this size anywhere but Oak, you'd call the start price of $1.595m a near-steal. 
Someone obviously agreed with that last remark. The listing logged less than 3 weeks on the market.

These deals leave just one property on Oak currently on public offer, an REO (another REO?!? yep.) at 2609 Oak (5br/5ba, 3650 sq. ft., 2006 build), up at $1.623m.

Unfortunately, it's on the "right" side of Oak, and this week that appears to be a liability.
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