East MB New Construx, New Heights

By Dave Fratello | August 9th, 2013

Can you get $3M for a new home east of the highway?

That's what they shot for at 1200 10th (5br/6ba, 4600 sq. ft.) at one point, but it doesn't look like they'll get it.

But they do have a newly posted deal – the second time this property has gone pending in a 2-week period – with a list price of $2.799M.

If this deal sticks, it will still be an impressive number.

Here's the background:

  • July-Nov. 2012, listed at $2.899M while under construction
  • MBC ran a post in July 2012, see "$2.9M for New Construx in East MB"
  • re-launched in April 2013 at $3.199M
  • cut in June to $2.999M
  • cut July 15 to $2.799M
  • posted a deal July 22
  • old listing removed and property re-listed "new" on Aug. 2 at $2.799M
  • posted a deal Aug. 6

For our review of the home, please see this Weekend Opens post from Memorial Day weekend.

It's easy, perhaps, to write off the (temporary) pursuit of a 3+ number, but remember, there was a time this year when it looked as if there was no ceiling. No height too high in this market.

If 1200 10th now closes in the 2.7-2.8 range, here's how it would fit in with historical sales of new & newer construction from the last bubble:

  • 1622 Gates (5br/6ba, 4850 sq. ft.) at $3.100M in June 2007 (pictured)
  • 1602 6th (5br/5ba, 4800 sq. ft.) at $2.830m in July 2007
  • 1603 5th (4br/5ba, 4700 sq. ft.) at $2.800M in Aug. 2006
  • 1613 Gates (5br/5ba, 5100 sq. ft.) at $2.750M in Nov. 2007
  • 1622 6th (5br/5ba, 4450 sq. ft.) at $2.725M in Nov. 2007
  • 1514 5th (5br/5ba, 4550 sq. ft.) at $2.690M in Oct. 2006
  • 1636 Ruhland (6br/5ba, 4435 sq. ft.) at $2.675M in Jan. 2007

That list includes only standard-size lots around 7500 sq. ft., or, for a couple of those top sales, 8700 sq. ft. corner lots. There are a few sales at $3M to nearly $6M if you go with much bigger lots in some of the tucked-away parts of East MB.

Interestingly, 1603 5th, despite that high 2006 sale at $2.8M, recently resold at a noteworthy 8% discount – $2.575M just this April.

Besides 1603 5th, the two most recent sales in this price territory east of Sepulveda are 1544 Voorhees (6br/6ba, 5135 sq. ft.) at $2.6M in June 2012, and huuuuge 1520 Gates (6br/6ba, 6015 sq. ft.) at $2.625M back in (gulp) June 2009. That's a way of saying these sorts of numbers have very rarely been hit since the "pop."

UPDATE: Just after the daily email went out, a new East MB sale closed: 1146 8th (5br/6ba, 5000 sq. ft.) at $2.575M – $80K over asking.

A sale near $2.8M at 1200 10th won't exactly mark out uncharted territory – been there, done that, with Mediterraneans about 6 years ago. But it will be a new height for this market, and a solid endorsement of the new "plantation" style as well.

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