East MB Now Has 3 Sales at $4M+

By Dave Fratello | July 23rd, 2019

We told you this was coming.

In May, we said it looked imminent that East Manhattan would finally see its first new home sale with a price over $4M. (See: "East MB: New Construx Shoots Higher, Condos Go Lower.")

Now we have three.

1755 8th Street Manhattan Beach CA1755 8th (5br/7ba, 4835 sqft.) just closed for $4.465M.

So what if this didn't hit the delusional heights of the prior listing ($4.950M)?

It's the new record, and will become the standard against which others are measured. Starting, perhaps, with the two homes directly next door, on either side, being finished by the same builder.

It has all happened pretty fast this year.

1320 9th Street Manhattan Beach CAKnockout, high-style 1320 9th (6br/7ba, 4900 sqft.) was the first to smash the ceiling, nabbing $4.250M in a sale that closed in June. (It was a must-have property. See our review and video from mid-May here.)

The second $4+ closing came a month later at 1643 8th (5br/6ba, 4835 sqft.).

This one had begun at $4.199M in early April, and closed 10 days ago for $4.150M.

As they say, one's an incident. Two's a coincidence. Three's a pattern.

$4.250M, $4.150M, $4.465M.

East Manhattan Beach, in case anyone doubted you, you have arrived. Bigly.

1755 8th Street Manhattan Beach CAWe've mentioned before a distinguishing feature of the current wave of new building in Manhattan Beach: East Manhattan has not been treated like the weak sister. (Apologies for any offense; you would have really hated "red-headed stepchild.")

No, indeed. At some point earlier this cycle, someone decided to bet that if people were paying top dollar for new homes west of Sepulveda, they would also appreciate high quality married to larger lots on the east side.

Whoever went first was rewarded, and then everyone rushed in.

All of this is in contrast to what happened with the bulk of spec construction in East Manhattan in prior cycles. The area was "cheaper" so they often built homes that were truly cheaper. It's been left to subsequent owners to try to modernize and update and glamorize the housing stock.

Of course there are exceptions to these rules (your home is nice!) but the point of raising it all is to say... $4M+ for a typically sized new home on a standard-sized lot in East Manhattan was never an obvious inevitability.

But here we are today, 3x $4M+.

Bonus observation: 3 of the top 5 sales in East Manhattan all have come on 8th St. Discuss.

1721 8th Manhattan Beach CAAs a reminder, previously, the top East Manhattan new construction sale on a pretty-much-typically-sized lot was 1721 8th (6br/6ba, 4480 sqft.), at $3.950M last October. Extra lot size may (8750 sqft.) may have contributed.

So then the high would have been 1446 18th (5br/6ba, 4700 sqft.), which closed for $3.850M, also last October.

From those, you could only see $4M on the horizon. Now they're the 4th and 5th-place sales.

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Closing caveat: We are focused here on typically sized homes on typically sized lots. There are giant lots and bigger homes east of Sepulveda that have sold for more (sometimes much more).

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