Land in East Manhattan Beach Getting Pricier

By Dave Fratello | April 13th, 2022

Jumps in land values are a part of the overall story of rising home prices in Manhattan Beach.

Here's our rundown on some land-value trends in East Manhattan's Mira Costa district.

Let's start with one of the early-2022 eye-openers, 1460 11th. (Framed in yellow in this image from the listing.)

This is a full, 7500 sqft. lot, one of the classic Mira Costa district 50' x 150' lots that allows for a maximum new build, or a good-size build and big yard.

Had the sellers not seen lot sales going over $2M?

Sure they had. But they priced conservatively anyway, starting out in early February asking $1.950M.

Were they thinking that 11th St. is not as prime of a location as some of the higher land-value sales?

Not to worry. That's not what buyers felt.

The closing was much higher: $2.400M.

This appears to be the new peak value for one of these lots.

1827 8th Street Manhattan Beach CALast week, we got the closed price on another 7500 sqft. lot, this one inarguably in a lesser location: 1827 8th.

Once you get into the 1800s, you know Aviation Blvd. isn't far away, and that you're not really close to much besides North Redondo.

They also priced conservatively, in late February, asking $1.990M.

The closed price: $2.200M. (Did that include the old Bug? Because that would have been a nice throw-in.)

So there's your location-adjusted value, still 10% over $2M.

The truth is, lot sales in East Manhattan weren't always in the 2's.

Indeed, until recently, typical lot values never were over $2M.

A while back, one listing got a bit ahead of the game/market.

It was a 7500 sqft. lot on a quiet street, 1427 5th, and it ran more than a full year without selling, always asking $2.100M.

More than a year!

It was Pandemic Year 1, March 2020 through later March 2021.

There was interest, but at the time, all the would-be buyers for 1427 5th choked on the asking price. It finally came off the market and remains unsold.

How many people would take it for $2.100M now? (We hear secondhand that the seller is now ahead of the current market in terms of price expectations. So, no, no one is going to take it for $2.100M.)

1541 Voorhees Avenue Manhattan Beach CAPerhaps the breakthrough land sale, the one that redefined pricing, came at the end of Summer 2021. It was 1541 Voorhees.

Try to ignore the not-so-pretty picture. This is actually a pretty nice block, rising up from Peck and, more or less, the high school football/track stadium. If it's not exactly a view location, it's still a nice spot on the hill.

They began at $2.200M, which might have seemed a little ambitious.

But the market had gotten there, and then some.

The sold price: $2.320M in Sept. 2021.

That was the peak until 1460 11th hit $2.400M.

It's interesting to compare to the next-door neighbor. It's the site of a new home already. 1545 Voorhees was sold for land directly to a builder in late 2019 for $1.700M.

Same location, same lot sizes, not fully 2 years' separation - and a $620K difference (36%) in land values!

When the market is accelerating like this, though, you do see misfires.

1642 5th Street Manhattan Beach CAA hillside lot at 1642 5th came out 3 weeks ago, in late March, asking $2.600M.

Hoo boy.

It seems they realized the error, and corrected the price in less than 10 days.

Now it's up at $2.400M, same as the peak sale on 11th Street, inviting you to ask, "Would I rather be on an interior street on a hillside, or one door off Peck and one street up from MB Blvd.?"

This is probably the better spot.

1643 Gates Avenue Manhattan Beach CATaking a totally different approach: 1643 Gates.

They're not shooting the moon.

What was that we said about the first couple sales of the year?

They priced conservatively, starting out under $2M despite comps that are all above.

The $1.995M list price should be destroyed in bidding.

Either Gates or 5th St. could become the new record holders before Summer.

Please see our blog disclaimer.

Latest Listings Among
Manhattan Beach Homes For Sale