Andalucian Goes Far South

Posted by Dave Fratello on Friday, May 6th, 2011 at 4:31am.

Once there was a custom-built dream home. Then plans changed, and it was offered to the general public. For a long time.

114 N. Poinsettia (5br/6ba, 6400 sq. ft., including basement) is far bigger than it appears from a casual drive-by, and much richer in detail than you would guess without a walk-through.

The property has its quirks (a front yard pool?) and its pounding location issue (at the corner of [busy] 2nd St. and [nearly as busy] Poinsettia). But it's a beaut if you give it a chance.

The very first listing of this Spanish-style home memorably described it as not just plain "Spanish," but "Andalucian," worth a few bonus points in our book. (And thank heavens they didn't go for "Tuscan.")

Buyers have had plenty of chances to check it out and weigh in. As this story wraps, it works out to be one of the more spectacular cases of owners' high expectations meeting the market's more modest sense of reality.

The listing came out at $7.750m in May 2008.

It dropped below $7m within the year, and MBC readers quickly voted it most likely (among a few top-tier listings) to drop its price eventually to $6m or below. (See "Results: First to $6m.") Yeah, good bet.

But let's fast-forward to now, after 3 complete revolutions of the Earth around the Sun, because 114 Poinsettia has now sold. Final price: $4.460m – all cash, we've heard (but not confirmed).

Traditionally, here, we tally up the discounts.

So, that's a chop of $3.290m (-42%) off that what,-are-you-kidding-me? start price. It has got to be a record of some kind. But we've said that so many times, you're going to think we're just perpetually amazed. (Maybe there's a "truly biggest ever chops" post in our future.)

Bravo to the buyers. They came along at the right time to snag a special home without obviously overpaying. (Want to know what kept all the other buyers away before? Fear of overpaying.)

The sellers deserve credit on many levels, too – for the build, and for their eventual recognition that the location was going to hold the value down on this one whenever a sale could be arranged.

We don't know if they made money on this deal at all. The lot was purchased for $2.025m in March 2005. This year's sale price is for $2.435m more, giving an extremely rough cost per square foot of construction of $380/PSF. Now consider demo, permits, carrying costs and commissions. The margins get narrower and narrower.

But, again, bravo to both sides, and farewell to yet another longtime subject here at MBC – till next time.
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