A Tale of Two Strand TitansPosted on Wednesday, June 1st, 2011 at 3:15pm.
We paired it, way back when, with 1800 The Strand (5br/7ba, 5725 sq. ft.).
Both were listed in Spring 2009 at more than $13m.
At 1800, they sought $13.5m. At 3516, the new home of the two, $13.999m.
There, the paths diverged.
1800 Strand went on to sell for $11.65m just a few months later, in Aug. 2009. That was a discount of nearly $2m, but they got that deal done quickly.
Not so at 3516 The Strand, a custom "Tuscan" build with extravagant details. (They called it "Villa Toscana Sul Pacifico.") It had the flavor of a true European villa, no expense spared, major inspiration behind it... but little market savvy.
So 3516 sat for 2+ years, not just 2 months. Location gave it a big hit. The ultra-custom build delivered another. (It had to be exactly what a buyer wanted.) And the extravagant pricing – that didn't help, either. Here's a look at the price history:
- April 2009: $13.999m
- Nov. 2009: $12.999m
- April 2010: $11.999m
- July 2010: $9.85m
- March 2011: $8.5m
When you've changed from "Titan" to "bargain," things aren't going well.
The very day after that story, 3516 posted a deal, and Tuesday it closed. (Boom, boom!) Final sale price: $7.3m.
That's extremely close to half off (-$6.699m/-48%) from the start. And we'll note that, in last week's post, we said we were "not betting against further price cuts" off of the $8.5m list price at the time. Really. This week's sold price is 14% off last week's final list price.
With a big, new home selling for $7.3m, the asking price for 2504 The Strand (4br/5ba, 3415 sq. ft., $7.190m) looked ridiculous. They got the memo. List price there dropped to $6.490m (-$700k/-10%) early Wednesday morning. (Well, at least they read the first line of the memo.)
For all the recent failures to price the Strand properly, there's some bigger news.
Remember when we noted 1600 The Strand as having the highest sale price for a single home on The Strand in MLS records? (See "Strand Reaches New Heights Again.")
1800 The Strand, referenced above (and pictured), quietly sold off-market in late March this year for $12.250m.
That 1800 was in escrow at a 12+ number has been an open secret for some time. The home was not offered on the MLS this year, and neither the 2009 sale nor the 2011 sale were posted to the database.
This year's sale at 1800 is a markup of $600k (+5%) over 2009.
That means 1800 will hold the record as the highest-priced sale of a single property on The Strand, period, while 1600 will maintain its place as the highest-priced sale on the MLS.
And 3516 The Strand – that one certainly gets the record for the biggest flop on The Strand this year, and we may need to search deep in the history books to find anything comparable.
comments powered by Disqus