Hill Happenings

Posted by Dave Fratello on Tuesday, January 13th, 2009 at 6:47am.

It's time for a quick check-in on the Hill Section.

First, a sale, at long last. The odd "flag lot" house at 612 11th is in escrow after 11 months.

During the Spring Rally of 2007, this dated home (4br/2ba, 1550 sq. ft.) on a shared lot was offered at $975k, but sold for $300k more ($1.275m) after a bidding war broke out.

In Feb. 2008, with development plans apparently thwarted, the new owner offered to flip the lot to any willing buyer for just $1.599m. (See "Flag It As Overpriced.") By Summer, those delusions were long gone, and the seller was willing to take a loss, pricing it at $1.199m. (See "Maybe They Lost the War.")

After that big cut, the price never changed, but now they've got a deal. We'll watch to see how that ends up.

Worth noting: This is just the second new escrow MBC has seen on an SFR west of Sepulveda in 2009.

Next, a high-dollar lot sale made a big cut Monday – its second. The double-wide (106') lot at 222 N. Poinsettia chopped from $6.9m to $5.995m.

Before that, they had already cut $1m.

So it's down quite nearly $2m; -$1.905m/-24% to be exact.

Is this surprising? Not exactly. MBC called the first price "preposterous" and the second price "slightly less preposterous." (See "Chops of the Week" from Oct. 2008.)

The future for this lot sale is ambiguous – you could buy it and develop it with a suitably huge home, or split the lot and build two. (See "Just Split 'Em.") Too bad the charming ranch home there is quite certainly a goner.

No question, this is nice dirt, but not the best the Hill Section has to offer. At this point, we would not be shocked – though the sellers might be – to see another $1m shaved off before a deal is made.
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