PPSF Shocker on 23rd

By Dave Fratello | June 11th, 2014

When the new home at 124 23rd St. came out recently, we rushed to see it with a client.

Before long, a buyer rushed to buy it.

This crisp, brand-new Plantation-style home (3br/4ba, 2040 sq. ft.) gets big views over the (currently) small neighbor and straight down 23rd St. It's got a nice location along Manhattan Ave., with the sand so close, you can all but feel it warming your toes even while standing on the balcony upstairs.

So how much are people paying these days for modestly sized new SFRs with big views?

In this case, $3.300M.

If that start price of $3.399M seemed ambitious, well, no. They just about nailed where the market would be.

And since we're trying not to be "shocked" anymore by big sales, let's focus instead on a pretty huge price per square foot instead.

124 23rd just sold for $1,618/PSF, a number that is hard to reach even this close to the water.

For a great Sand Section home, you might assume something like $1,000/PSF. And this would be 60% higher.

But rather than settle for rules of thumb, we figured we had better do some research.

We confined the search to Sand Section homes with comparable lot sizes to the 1350 sq. ft. lot here at 23rd St. We focused on the past 6 months' worth of sales.

We see a relative "low" at $883/PSF in El Porto at a small, fixer duplex at 124 42nd (3br/3ba, 1240 sq. ft.), sold short for $1.098M in February. (By the way, what a difference 19 blocks makes in MB! 124 means something different in midtown.)

Another El Porto duplex nearby at 206 Moonstone came in at $943/PSF. (Sale price: $1.290M.)

Wrapping up our tour of El Porto sales, 117 Shell finished up with a PPSF of $855/PSF. (Sale price: $1.550M.)

Epic views at 3316 Crest (4br/4ba, 2100 sq. ft.) delivered a sale price of $2.160M and a PPSF of $1,035/PSF.

Decent views and a South End location helped 715 Bayview (3br/3ba, 1840 sq. ft.) net $2.025M and a PPSF of $1,099/PSF.

Also down south, 225 1st (3br/4ba, 2100 sq. ft.) is not entirely different in layout from 124 23rd, does have nice views, but the remodel is several years old now. Its $2.025M sale price was good for a PPSF of $968/PSF.

To see the PPSF of $1,600+ beaten, you focus on smaller homes selling for big numbers.

One is 124 17th (2br/1ba, 880 sq. ft.), the landlocked, one-story half-lot house that nabbed $1.540M in December before a remodel got under way. PPSF there was $1,746/PSF. (The lot is a little bigger, at 1500 sq. ft.)

The companion rear unit at 125 16th Place (2br/1ba, 850 sq. ft.) got $1.499M and $1,753/PSF.

There is one sale which blows away even 124 23rd by the PPSF measure.

That was little 137 15th St. (2br/2ba, 890 sq. ft.), a super custom modern remodel that sold for $1.950M in April, with a whopping PPSF of $2,193/PSF.

Unlike a lot of smaller-home sales where you can see the PPSF numbers get skewed, that was a house that was bought because it was special and ready to go. It was not the land driving the big number alone.

Nearly $2,200/PSF? That's probably the real shocker, isn't it?

Please see our blog disclaimer.

Latest Listings Among
Manhattan Beach Homes For Sale