Porto's Biggest Sale Ever - By a Mile

By Dave Fratello | June 10th, 2022

Anyone living in or visiting Manhattan Beach will quickly see the differences between the El Porto neighborhood and other parts of the Sand Section.

It's mostly half lots, mostly older homes, lots of rentals, a younger crowd, and so forth.

The surf's the thing. The housing has often lagged a bit.

200 40th Street Manhattan Beach CABut values have risen. Here and there, developers have taken a flyer, trying to build something big and get a big number.

Just one recent new construction SFR has exceeded a $3M sale price in El Porto, though a few have tried.

Still, the question has beckoned: Can you get this close to the beach, some of the best surf in the South Bay, and build a luxury property that absolutely kills it?

Now, a game-changing sale has closed, with an emphatic "yes" answer to that question.

It's 200 40th (4br/5ba, 2468 sqft.), among the biggest "half-lot" homes built in Porto.

(This one boasts a 1700 sqft. lot, a bit larger than a pure half lot at 1350 sqft., thanks to a favorable 30' x 57' deep lot, more than a typical 45' deep lot.)

It has just sold for $5.300M.

They did that by building ultra luxury, taking advantage of good ocean views and one of Porto's widest streets.

It can't be a coincidence that all of El Porto's power poles are coming down, too, enhancing views and values.

This sale is more than $2M higher than four other sales that might possibly enter the conversation as comparables:

3904 Ocean (4br/4ba, 2106 sqft.) is a 2006-built modern right along Ocean Drive, with good views and modern flavor.

Asking $3.150M in April 2019, it sold higher at $3.270M soon after.

124 39th (3br/4ba, 2008 sqft.) is a 2020 build that got $3.100M in Oct. 2020.

208 Moonstone (3br/4ba, 1845 sqft.) was listed as a 2020 build, sought $3.100M but got $2.885M in Spring last year (April 2021).

124 38th Place (3br/4ba, 1920 sqft.) appears to have been the first-ever attempt to get $3M+ for a standard half-lot home. The new construction there sought $3.100M in 2018 and closed for $2.760M in Oct. 2018.

So....

When they listed 200 40th, did they know that with a start price of $5.499M, they were asking almost twice the value of the highest comps?

Of course.

Did they know they were blowing minds, resetting expectations, or maybe just looking crazy?

Sure. But they didn't care about the crazy part. (They even teased MBC a bit for calling attention.) They were confident.

Now they're reset ideas of what's possible in the thick of El Porto.

Land values in the area may never be the same. Little investment-value cottages and duplexes have already been sorting into the lower $2Ms consistently.

Who's going to be next to build to this level, and seek prices in the $4s and $5s again?

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