Resetting the Bar in the Hills

By Dave Fratello | September 18th, 2014

With both a recent price increase and a new deal, the new construction project at 927 10th is raring to become the priciest new construction in the Hill Section in more than 4 years.

The home will be big (5br/7ba, 5100 sq. ft.) and on a larger-than-normal lot (7500 sq. ft.).

The list price currently: $5.800M.

Only one of the 3 most recent new-construction sales boasted a house nearly that big, and it came in more than $1.600M lighter. Here are those 3 most recent sales:

931 Boundary Place (5br/5ba, 3150 sq. ft.) this past April at $2.750M (pictured),

502 N. Dianthus (5br/6ba, 4700 sq. ft.) in August 2013 at $4.165M, and

807 Boundary Place (5br/5ba, 3200 sq. ft.), also in Aug. 2013, at $2.199M.

To see a price like 927 10th, we have to go back to a brief moment in early 2010.

Then, the big "green" home at 645 9th and the double-lot home at 814 10th each sold in the 6's.

645 9th, despite its LEED certification, is an enormous house – 6br/7ba, 7750 sq. ft, on a very big lot (9750 sq. ft.). It fetched exactly $6.000M in May 2010. It was a very big number, but 25% off its initial aspiration to get $7.950M.

Call it 50% more house than the project under way at 927 10th, on a lot that's 30% bigger.

Meantime, 814 10th is even bigger: 5br/7ba, 9000 sq. ft. on a super-size 12,000 sq. ft. lot (we just called it a double based on that extra extra).

After a start asking $6.995M, they eventually sold (after more than a year) at $6.300M. Looking back now, that sure looks like a lot of house for the money. It's nearly double what they're building at 927 10th.

Going all the way back to 2007, there were only 2 public-market sales with a 4 in front, and none with a 5, 6 or 7.

So there's some perspective on just how big the number is at 927 10th.

It's all the more remarkable in that the 900 blocks are east of Poinsettia, closer to Sepulveda than not. The feel of this particular block is more reminiscent of lots of nicer blocks around East Manhattan Beach than it is of what most people might think of as the Hill Section, which generally conjures ideas of expansive view estates. It's just a great neighborhood west of Sepulveda.

And a great neighborhood with a new record-setting comp getting ready to throw down.

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