Seems 'Manhattan Pointe' Peaked

By Dave Fratello | March 10th, 2020

A couple of years ago, there was a minor frenzy to buy condos/townhomes in the "Manhattan Pointe" complex east of Aviation.

The 28-unit complex historically has dry spells without sales that can last 2-3 years, just because people stay.

But there were 5 sales within calendar year 2018, the most in one year since 2003, just after the complex opened.

All of the 2018 sales, plus one in 2019, were over $1M, a level first hit within Manhattan Pointe in 2016.

The first 2 sales of 2018 established a peak price: $1,170,000, hit first on an MLS-listed property, 203 Aviation Place (3br/3ba, 1750 sqft.) soon after its March 2018 debut on the market. One of the "losing" bidders on 203 found a way to buy a different unit in the complex, 213 Aviation Place, for the same price: $1.170M, in a deal arranged off-market.

That price has never been matched.

As our chart here shows, almost all sales from 2016-2019 were in the narrow range of $1.000-$1.080M.

The most recent sale, 311 Aviation Place (3br/3ba, 1750 sqft.), closed for $1.045M in April 2019, after first trying for $1.075M in Nov. 2018.

There was nothing obviously out of line with the original asking, since two sales closed in late 2018 at about the same price. But it was not to be.

All of this is relevant to one active listing today.

229 Aviation Pl Manhattan Beach CA229 Aviation Place (3br/3ba, 1750 sqft.) is back on market at $1.099M this week. It's a resale of a recent trade.

If they get that, it'll be the highest-priced sale since the peak sales in 2018, but still lower.

You can see the (recent) prior sale on this unit in our chart above. It's the November 2018 sale at $1.080M.

Going back a bit before it closed at at that level, 229 Aviation Place had started out on market in May 2018 at $1.170M, the same level of the two quick peak sales. Obviously it didn't hit that, making a strong suggestion that the two high sales were out of line somehow.

The Nov. 2018 buyer for 229 Aviation Place had a change of plans and tried to resell within a few mnoths, starting at a significant loss: $1.050M in March 2019.

After 4+ months of not selling, they raised the price (!) by $20K, later lowered from there by $10K, and quit in November 2019 at $1.060M.

There's still a net loss if they sell for the current asking price of $1.099M, due to the costs of sale. And it's no fun to have a unit empty for most or all of a year and a half. Usually, there's something else better to do with your money.

The Manhattan Pointe condos remain an attractive, affordable option for getting a foothold in the Manhattan Beach market, and they're part of a unique and tight-knit community.

The value proposition is pretty straightforward. Current market value is still TBD.

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