Aim High?

By Dave Fratello | March 26th, 2019

Someone is itching to drastically break the record for East Manhattan Beach new construction prices.

1515 Gates Avenue Manhattan Beach CAThere are now not one, but two new construction listings at $4.950M.

[checks notes]

Yes, $4.....950M.

The latest offering is really a rendering for now. It's 1515 Gates, described as having 5br/7ba, 7100 sqft. on a completely standard-sized 7500 sqft. lot.

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1515 Gates Avenue Manhattan Beach CAYes, 7100 sqft., which you get by adding a vast basement.

If you were to go visit 1515 Gates right now, you'd see only the basement plus initial main-floor framing. They'll be working there for a while.

The listing is out there both to entice buyers and to try to offer the chance to customize finishes.

At "just" $697/PSF, this one would not be the most expensive East MB home ever by the square foot. In the past 4 years, there have been 20 sales in East Manhattan at a PPSF of $700-$881/PSF.

But your PPSF does suffer when you have a ginormous home. It's math.

1520 Gates Avenue Manhattan Beach CAThe very biggest East Manhattan home we can find in the MLS on a typically sized lot was nearby 1520 Gates, which sold just 2 months ago (for $3.675M) but was built back in 2008 originally.

That home's plus-sized 6br/7ba, 6028 sqft. size was described as "breathtaking" in the marketing copy. But the PPSF was just $610/PSF.

Heck, if 6000-ish sqft. is "breathtaking," what is 7100? "Heart-stopping?"

But we digress.

1755 8th Street Manhattan Beach CAThere's already one new-construction listing in East Manhattan at $4.950M.

That's 1755 8th, a far more conventionally sized home at 5br/8ba, 4835 sqft.

That one debuted around Thanksgiving last year as it was just being finished, and has 4 months' worth of DOM now.

It's also paired up with... er, tripled up with?... two other brand new homes on either side of it that are just being finished now.

Will they debut at $4.950M too?

The strategy here to aim high and see what you can get comes at an interesting time.

Last year, East Manhattan Beach saw its previous price record for new construction broken twice.

Looking at new homes on more or less typically sized lots (~7500 sqft.), there were 6 sales of new homes over $3.000M, of which 4 closed at $3.600M or more.

For almost 2 years, no East MB new home had sold for more than $3.700M, a record set at 1400 23rd in Oct. 2016.

1350 23rd Street Manhattan Beach CAThat $3.700M was matched in June 2018 by a home right across the street at 1350 23rd.

Then came two more even higher in October:

1446 18th (5br/6ba, 4700 sqft.), which appears to have been the first new construction to start over $4M at $4.075M, but which sold for $3.850M, and

1721 8th (6br/6ba, 4480 sqft.), which sold pre-market for $3.950M. That home does have a larger lot at 8750 sqft., helping to reach that chart-topping sale price.

Those were all big news last year.

But look out, Number One. They're gunning for you.

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