Wave of Wipeouts on 1st

Posted by Dave Fratello on Tuesday, September 1st, 2009 at 6:12pm.

In the space of a few days, 4 listings on 1st St. have dropped of the MLS.

In order, from the ocean up the hill:
  • 133 1st (3br/2ba, 1300 sq. ft.) is a 60s box with some updates that has been a rental for some time. You can't dismiss the beach proximity or the ocean views here, but the home is on the small side and has a strike against it for being situated at a busy 4-way stop.
The home was acquired 8 years ago (Aug. 2001) for $710k, but loans against the property neared $1.1m about 5 years later, in 2006. The first list price was $1.45m in February this year, last at $1.349m. The property has been re-listed once before, so it could come back.
  • 325 1st (3br/4ba, 2075 sq. ft.) is a remodel (really a down-to-the-studs overhaul) purchased for $1.617m in Dec. 2005. In November last year, the owners tried to sell at $1.849m, a nice markup, but that notion faded. It first neared the 2005 price (see "Not Worth Their '05 Prices?") and then sank below it – last at $1.559m (-$58k from 2005, or a potential net loss of $136k with 5% costs of sale).
  • 420 1st (2br/2ba, 800 sq. ft.) is a little cottage – well, 2 little cottages with a small yard between. The property backs up to a school and abuts a parking lot. (The parking lot was pitched as an asset in the listing.)
When this home was last offered in Oct. 2006, it began at $1.350m and was marketed as a teardown. The current owners took it for a nice discount, $1.075m, in June 2007 and cleaned it up instead. (We're all for preservation.)
The listing said of this year's marked-up price of $1.275m: "Property is listed for lot value but is livable and rentable." Lot value? MBC has been openly skeptical that the dirt has become more valuable in the past 2 years. (See "Askew Down South.")
As with 133 1st, this listing has previously – quite recently – gone through a re-list, though with no price drops, so we'll see if it returns. The sellers were said to be open to leasing out the property.
One possible reason for no action: The listing says the property is located in "South Manahattam Beach." Manahattam? Where's that?
  • 1042 1st is a darling, huge home (5br/5ba, 4800 sq. ft.) that has been completely updated – so it's easy to look past the 1992 vintage.
There are surprisingly good ocean views from the top of 1st St. The location, however, is very near to Sepulveda and some condos.
This was a case of a well-known agent trying to sell his own home, but loving it a little too much to price it right. The listing began at $3.495m last September, coming down gradually over nearly a year to $2.695m.
Just last week, MBC reported on a closed sale at a similar address: 1042 2nd, a bit smaller (5br/4ba, 4425 sq. ft.) but much newer in a compromised location, which sold at $1.810m. (See "Atypical Deal on the Hill.") At the same PPSF, 1st would not quite hit $2m, but we doubt that serious offers would have been that low.
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