Another Big Markup Over 2010

By Dave Fratello | April 29th, 2014

It's just what's in the air now, it seems.

With the closing Tuesday of the sale at 801 11th (4br/3ba, 3035 sq. ft.) at $1.930M, we see another sale at a big markup to a 2010 acquisition price.

2010 wasn't so long ago, folks.

But back then, late in the year (call it 3 1/2 years ago), someone grabbed the custom Mediterranean at 801 11th for $1.380M.

The resale now comes at a markup of $550K over that last market sale, a solid 40% above the same home's value in a different market.

Is the Manhattan Beach real estate market really up 40% in just 3-4 years? Well, the market for this home is.

And in last week's "To Have a Time Machine" post, we pointed to one resale that nabbed 28% more than a 2010 price, another seeking 36% more and a third that sold last year for 41% over 2010. (After some remodeling in that last case.) 

It was early this year when we first featured 801 11th in a post titled "Steal & Sell."

In sum, this home had a more difficult history in a more difficult market. Its location – backing up to commercial, with a busy intersection nearby – was more concerning to buyers then. When the sellers had to sell, they couldn't.

In 2009, NODs began and foreclosure loomed. A 2010 effort to sell short at $1.600M failed. The lender took a big hit when an investor paid $1.320M in June 2010 on the courthouse steps.

That investor, undeterred by the recent market failure at $1.6M, tried at $1.590M. But after 3 months, the investor cut and cut and finally made the best deal (then) possible: $1.380M to someone not afraid at the time.

Fast forward four years and forty percent, and you've got Tuesday's sale – and another buyer from the down market looking brilliant in the rear-view mirror.

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