Strand Happenings

Posted by Dave Fratello on Thursday, January 31st, 2013 at 3:47pm.

Manhattan Beach (and Dave) got some nice references in today's LA Times. (See "Money finds a home.")

It seems like The Strand would like to be a part of the story this year. Time for a little love.

It wasn't a smashing year in 2012 along our treasured beachfront, despite the buzz all around MB. But here we go with an interesting launch to 2013.

First off is a newly pending sale, arranged off-market and posted to the MLS this week.

That's 3300 The Strand (5br/4ba, 4750 sq. ft.), a modern built in 2006 that benefits from a slightly larger, 3500 sq. ft. corner lot.

There's no past-sale information available besides the lot sale ($2.250M in 1996), so this would look to be a custom build from 6 years ago, hitting the market for the first time.

And what a way to hit it: It's pending at $11.5M.

That would clear the hurdle set in March 2012 by 1712 The Strand (2008 build) as the highest sale of the year, at $10.5M.

Are they really going to close at $11.5M? They're keeping that under wraps for the moment.

The other ready-to-go, updated home along the Strand to sell last year was 108 The Strand at $7.050M. That's a cool place, as it goes, but it was a remodel of an older home that seemed to turn off a string of buyers due to layout.

Next up among recent Strand happenings is the recently closed sale at 4112/4114 The Strand, which we called "an extraordinary newer Cape Cod duplex way up in El Porto Norte."

You might remember this one for its several months of market exposure last Fall and into the Winter.

The two units combined were being offered for $8.250M, or they said they'd offer just the front unit for $4.5M. (Using our math skills, we determined that this put the list price for the back unit at $3.75M.)

Now both units have sold, and one is back.

A cash buyer came in and grabbed the whole darn building at a noteworthy discount: $7.125M.

But the target was just to get the front unit. The sellers insisted on selling both. So now the back unit, 4114 The Strand, is back on the market at $3.625M.

When the complex was sold (as one), they broke up the reported sale prices as 4112: $3.875M, 4114: $3.250M.

So with those data, 4114 is now back at a $375K (+12%) markup just minutes after acquisition. By another measure, it's discounted $125k from its offering price last year. Now we'll see what the market has to say.

Worth noting: When this duplex was built, the rear unit was given very favorable consideration. The top floor living spaces look out over the top of the front unit, getting outstanding views – not what you might expect from the "rear unit" of a Strand home.

2020 & 2016 The Strand
Finally as we wrap up a look at The Strand, there's the harder case of 2020/2016 The Strand, a joint double-lot offering that came out at $30M in January 2011.

We're still sussing out information here, but we'll give you an interim report on what we know.

This was supposed to be a once-in-however-long opportunity to get a double Strand lot with a corner and develop the whole thing into a new, signature mega-house. 

There was a huge premium built into that $30M start price, and the various discounted (but still large) prices placed on the property over the ensuing 2 years. We called it "the city's highest-priced and most-overpriced listing" at one point.

What we see now is that both individual properties have sold. What we're not certain of yet is whether they were sold jointly, as had always been the intent.

On the MLS, they've reported 2020 The Strand as selling for $9.450M. That's a $1.8M discount off the last asking price ($11.249M), and more that $5.5M off the asking price as one-half of the double lot when this listing launched. (Comparing against the list prices here does seem especially silly.)

Public records, meantime, show a sale in late December at 2016 The Strand. (Redfin's link there does not show the sale, which we found in a tax records database.) The catch? They recorded the sale in such a manner as to hide the sale price – for now.

Did these properties sell jointly to the same folks? We haven't nailed that down yet.

2016 went to a Manhattan Beach family, while the agents for 2020 The Strand were not from the South Bay, hinting – for now – that the buyers may not be from here, and therefore that the double lot sold, instead, as 2 separate lots. We'll report the next facts on this one as we get them.
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