Markup for a Walkstreet Lot-Plus

Posted by Dave Fratello on Monday, March 28th, 2011 at 9:10pm.

Our natural skepticism was on display a few weeks back as we took a look at 324 8th, a 1-1/2-size lot (4050 sq. ft.) on a flat walkstreet near downtown.

In "Flat But Up," we noted that the next-door lot at 316 8th – same unusually large size – had sold for $2.150m in Sept. 2009. It's now a construction site. When they finish the home there, it could be worth $4m or more.

So here came 324 8th, set in off Crest by one (and a half) lot(s), asking for 21% more than the neighboring lot had gone for, with a start at $2.6m.

A deal posted last week at 324. From what we're hearing, the sellers got a bump over the corner-lot neighbor's price, but not quite the huge bite they were looking for.

Though we haven't got the actual deal price, we'll expect something nearer to a 10% markup over the neighbor. That would be just half the boost they sought, but it would still be a bullish sign for one slice of the local market.
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