Ocean Views, 23% Off

Posted by Dave Fratello on Wednesday, December 12th, 2012 at 5:00pm.

Sometimes the promise of short sales and REOs as some sort of bargain is dashed in reality.

The market value is what it is, and distress sales – rare as they are in MB these days – just don't seem to deliver huge discounts.

But a new El Porto Norte short sale looks pretty good pricewise, and looks extremely good from inside. Moreover, it's a huge discount to the peak-year acquisition.

That's 316 45th (3br/4ba, 2320 sq. ft.) we're talking about, a 2006-built TH at the north end of town, and almost at the top of the steep hill that rises up to the tank farm a peak in El Segundo territory.

Views? Oh yeah. We said in our review in September:

There are few higher points in MB with more unobstructed panoramas than this TH on the furthest edge of town. The master gets very good views but the top floor... wow, oh wow. The whole of Santa Monica Bay.
There is no way for MLS pics to capture truly great views, and the listing pics here don't quite do the home justice. We've picked out one that hints at the forever, 180-degree-plus views – and it's from the second level, not the top.

So the views are awesome. How good was the deal?

The easiest barometer is to check this against a peak-year acquisition price. New in 2006, purchased in May 2007 for $1.999m. How often do you see $2m in El Porto Norte?

Now, sold short in 2012: $1.537m, a chop of $462k (-23%) from peak.

That sold price is not much different from the start price this year of $1.500m.

No doubt, this is a fair price for a larger TH with that big view bonus. There's also some discount for location and – intangibly – the imposition on views from things like the gas station, vast oil tanks and string upon string of power lines.

Looking all around town at comparable THs, with similar size and some views, we immediately considered 233 1st (4br/3ba, 1900 sq. ft., $1.650m), 88 Manhattan Ave. (3br/3ba, 2150 sq. ft., $1.925m), and 304 30th (3br/3ba, 2270 sq. ft., $1.732m).

And looking specifically at a few other THs that traded this year right around this price, the views at 316 45th blow away the competition: 432 21st Place (3br/3ba, 1950 sq. ft., $1.529m), 428 21st Place (3br/3ba, 1900 sq. ft., $1.499m) and 317 1st Place (3br/3ba, 2000 sq. ft., $1.479m).

So did the new owners here get good value to go with the great views? On this short sale, it would seem yes.
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