Past 2 Strand Sales Far Under Start Prices

By Dave Fratello | June 20th, 2020

In the past few months, two sales on The Strand in Manhattan Beach have come in far below sellers' initial expectations.

The first, 2304 The Strand (3br/3ba, 2350 sqft.), took almost a year to sell.

The 1965 original launched early in 2019 at $9.950M. That wasn't going to happen. Among other things, the location just behind the public bathrooms at Marine would have been a turnoff to some.

It took 6 months for the first million to be shed from the asking price, 4 more months to bring the ask to $7.950M.

When the sale closed this March, soon after the stay-at-home orders, the final price was $7.400M.

That's $2.250M below the start price, fully 26% off.

This week we saw a similar case.

A recognizable and actual landmark property at 3004 The Strand (duplex, 4br/4ba, 3350 sqft.) came to market in early March, then re-listed in April, in the depths of the COVID-19 shutdown.

Looking for top dollar, they began each listing at $9.495M.

Just 30 days into the second try, they drew an offer. And there had been no price cuts. Would they get their big ask?

No, they would not. A buyer made a persuasive case as to the property's actual value, backed up by dollars.

The sale closed Thursday at $7.000M.

It's a similar $2.495M below asking (also -26%).

We're not going to call this a trend, as both were very particular types of Strand properties.

In fact, 3004 The Strand is both a local and state landmark, officially, thanks in part to the custom design and also to the original homeowners' own handiwork, the series of copper panels with intricate designs that span both full 3-story walls framing the ocean view patios. (You can read more in these 2007 and 2020 local news stories.) It's not a teardown, and it's not going anywhere.

One can argue both that the number looks low on the merits (good for the buyer) and that there could be some impact from the historic designation(s). To the extent development is limited by the property's status, it's unlike any comparable Strand lot. Very few Manhattan Beach lots of any kind, especially on The Strand, face sharp limits on their development.

You can see all the photos and details for both properties using this link.

The year 2020 on The Strand hasn't only been about these couple that took big cuts.

Down at 304 The Strand, an off-market sale that closed in February actually set a record.

The property last sold quickly in Summer 2015, for the asking price of $14.000M.

That sale seemed to be part of a huge runup in South End Strand values.

Now it has resold for $14.500M, a new record for an interior (non-corner) lot on The Strand.

 

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