New Crest Over $3m on Plateau

Posted by Dave Fratello on Tuesday, September 4th, 2012 at 3:29am.

The previous high sale for the Sand Section plateau* was $3.0m, but now it's been surpassed.

417 34th: $3.230m
417 34th, a spec-built modern, has blown past that mark by more than $200k.

The full-size, 4br/5ba, 4300 sq. ft. newbie closed late last week for $3.230m, just a tad off the asking price of $3.299m – amid multiple offers. (There's a video tour – longish, capturing most of it – here at Matt Pernice's blog.)

A recent high sale in the plateau region was at 445 33rd, a transcendently beautiful custom beachy-modern that was notably smaller at 5br/5ba, 3600 sq. ft. That one went off-market for $2.775m, after once asking more than $3.1m. (See our Dec. 2011 post, "Beachy-Modern Marks New Plateau High.")

But that beachy beauty on 33rd wasn't the highest ever, just most recently, and highest by PPSF.

The highest price we find among plateau properties ever before this year was right at $3.0m, for new construction begun and finished toward the end of the bubble.

Sketch of 440 32nd
That was 440 32nd (5br/5ba, 4350 sq. ft.), first offered in Summer 2006 and sealed up and sold in Feb. 2007.

For this stunning modern: $3.0m.

A close second to that one (now third historically): $2.989m for 444 29th (5br/5ba, 4250 sq. ft.) in Summer 2006.

So what does it say to you... ?

Two bubble-era new-construction prices – the highest ever in the subregion – both have now been eclipsed?

For one thing, this is the first big MBC story that helps us introduce a theme: Spec building is back. 

Yes, all the big-name developers, and lots of would-be profiteers, are active in the MB market once again. Now, for them, the numbers work.

417 34th is but one indication.

We'll cover this developing phenomenon – spec development in MB – in upcoming posts.

Meantime, 417 34th is just one example of the plateau getting pricier – another story on its own, too.

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* For reference's sake, the "plateau" consists of the 400-block homes north of Grand View school, a special kind of close-quarters family/beach neighborhood. Some residents also call the area "the flats," recognizing that the upslope of the 100-300 blocks has ended at around Vista and the 400-block homes are the first consistently flat streets before the cliffside over Sand Dune Park.
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