Strand Cuts of Different Scales

Posted by Dave Fratello on Wednesday, June 22nd, 2011 at 11:45pm.

The year 2011 has seen some big-dollar trades on The Strand, and a little too much kool-aid passed around among other would-be Strand sellers. Overpricing is like an epidemic at the beach.

We last looked at this problem in late May, as 3112 The Strand finally came down to $5.999m, where it probably should have begun 6 months earlier. (See "Clogged Strand Finds a $6m Option.")

Slowly, some others are coming along:

2504 The Strand (4br/5ba, 3415 sq. ft.), is touted as "exquisite" and "stunning," but it's actually dated with an older modernistic update (to a 50s original). It launched at $7.190m in March, but a week after that MBC mention, switched to a number with a 6 in front: $6.490m (-$700k/-10%).

3308 The Strand (technically 3309 Ocean, an SFR with 4br/5ba, 3100 sq. ft.) launched at $6.590m, also in March, but has just shed $390k (-6%) to $6.2m.

2016/2020 The Strand, a double lot that had been up at $30m for 5 months, finally made its first cut. Though it was also 10%, like 2504, 10% of a much bigger number is a much bigger number: $3m off the top, now to $27m.

Obviously with 2016/2020, the dirt value of each lot, taken alone, does not justify that price, but the scarcity of combined Strand lots is supposed to make this offering far more valuable. So they shot high to begin. Everyone on the Strand is doing it. And if you had a $20m-$30m asset to offer, plus time to wait, what would you do?
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