Pushing $3M in Liberty Village?

By Dave Fratello | February 19th, 2015

Here's how you make markets: You ignore all that came before, just put a sticker price on what you've got, and make people come to you.

That's the kind of boldness that's behind the new-construction listing at 1304 Lynngrove.

This upcoming 5br/6ba, 3750 sq. ft. "gorgeous custom contemporary" home will be offered at $3.199M to begin.

That's quite a bit above $3 million, a number never before dreamt of east of Redondo Ave. in this little pocket of Mayberry in Manhattan known as Liberty Village.

Formerly one of the most reliably affordable neighborhoods of MB (it's all relative), the LV is now getting a ceiling-pushing listing that could reshuffle all thinking about the area.

You know right away upon seeing this listing pop up that they're shooting for a monster record price for the area.

But just how monster?

1605 Wendy Way Manhattan Beach CALooking only at the Liberty Village pocket east of Redondo, the highest sale price ever was recorded last year, at 1605 Wendy (5br/5ba, 3550 sq. ft.), a 2006-built Mediterranean.

That high sale? $1.965M.

Now the asking price on 1304 Lynngrove is... gulp... 63% higher.

This is still a time, apparently, to dream big.

Why, before this month, who would have thought a new home over by Pennekamp on a smaller lot like 1321 Voorhees (5244 sq. ft. lot) would command $2.8M? But it did.

Here at Lynngrove, the lot is 5400 sq. ft. and the (prospective) home is just a tad bigger than 1321 Voorhees (3750 vs. 3600 sq. ft.). The ask is 14% more than that head-spinning sale at Voorhees.

We are really trying not to be shocked by anything, but this one did it. (Stay tuned till the end of this post; there are a couple new ones to add.)

927 10th Street Manhattan Beach CAOur reaction on Lynngrove was a bit similar to the reaction to news that this same builder has a spec project at 927 10th in the eastern part of the Hill Section in escrow at $5.800M. (Pictured.)

So, how could this new construction on Lynngrove "reshuffle all thinking" about Liberty Village?

We've often observed that most of the housing stock in the LV hews pretty close to the original cottages. People have added on, sometimes popped up a second story, often opened up the floorplans in updates, etc. But you can still see the original cottage in there somewhere.

The neighborhood has kept a certain charm and consistency with this trend mostly against spec development and larger homes. (Exceptions largely prove the rule.)

But if new homes can fetch those types of big numbers now being put out for Lynngrove, land values instantly rise, and more spec projects become likely right away.

As they say: There goes the neighborhood.


UPDATE: 1304 Lynngrove wasn't the only shocker new to the MLS this week. See also:

1131 6th (5br/5ba, 5025 sq. ft.), new construx by the same builder, coming out with a $4.499M start price.

Location is just a few doors east of Sepulveda.

You could say this is more than $1M above comps, or you could say it's a nice discount of $1.3M off the comparable project just a block west of Sepulveda at 927 10th.

3300 Ocean Drive Manhattan Beach CA3300 Ocean Drive (3br/4ba, 2000 sq. ft.) is an overhauled, sharp, Strand-adjacent TH with big views down the 33rd St. walkstreet.

They've brought this one out at $4.350M, a PPSF of $2,175/PSF – the type of number you typically see on scrapers, where the tiny original house is no match for the land value.

Surely a corner on Ocean commands a big price. Why, just last week, a half-lot SFR at 1904 Ocean (2br/2ba, 1800 sq. ft.) sold for $3.250M, although there, the PPSF was $1,806/PSF, or 20% lower. But that was last week.

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