Good Work If You Can Get It

By Dave Fratello | August 24th, 2013

Want to make $1M on a quick deal?

Who wouldn't?

Unless there's some catch.

Worry not. Your eternal soul is safe. All you need to do is buy a Manhattan Beach short sale and hang on for a short time, while the market rockets skyward.

And that's roughly the plan at 316 45th.

This ocean-view TH in furthest-north El Porto was picked up a relative moment ago, in Nov. 2012, for $1.537M.

Notice the 1.5 in front.

Now?

How about $2.635M?

That's the current request. 2.6+. A bump of $1.1M.

This is a 3br/4ba TH with 2100+ sq. ft. inside, and lots of parking. (Necessary with this being El Porto.)

The views are freaking for real. As we said in a review in Sept. 2012:

There are few higher points in MB with more unobstructed panoramas than this TH on the furthest edge of town. The master gets very good views but the top floor... wow, oh wow. The whole of Santa Monica Bay.

It's really something to see. (They've got public opens Sat. & Sun. 1-4pm, so drop in, if you can find parking.)

The TH was developed in 2006 and sold in Feb. 2007 for $1.999m... at the end of the last bubble.

It has notable location liabilties to be balanced against those views. Like... the views, which also include Chevron tanks, power lines, Highland Ave. traffic and the gas station below.

So did this one just escalate in value 71% above the recent acquisition price? Or 32% more than the new-build price from 2007? Do we need to ask?

Look down Highland a bit to another newer TH with comparable space and very, very good views, and not in El Porto. That's 2904 Highland (3br/4ba, 2300 sq. ft.), lingering unusually long at 5 months and currently priced at $2.199M.

If Highland isn't going to hit 2.2, why would 45th exceed 2.5?

(Note: We don't think the answer is a 4th bedroom at 45th. Tax records and past MLS entries for 316 45th say 3br; the current MLS entry says 4br. We're saying 3br above.)

Even if the sellers are overreaching, you have to credit them for jumping on this late last year and pulling off a coup, of sorts. They grabbed this TH under market at a time when that was already very hard to do.

They won't make $1 million, but if they sell, they'll do great for a 1-year hold.

To reach $1M, they're going to have to repeat the feat. Maybe more than once.

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UPDATE: Sunday afternoon, they cut 10% ($260K) off the price at 316 45th, to $2.375M. That puts it 55% over acquisition instead of 71% over.

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