South End New Construx Climbing

By Dave Fratello | February 9th, 2018

With the latest sale of new construction, the South End appears to be enjoying a boost in values.

500 4th Street Street Manhattan Beach CAThe sale is at 500 4th (5br/5ba, 4200 sqft.), and has just closed, in a deal arranged prior to the home's completion. There were multiple buyers chasing it before the certificate of occupancy could be issued.

Sale price: $5.600M, a little 5% uptick from the most recent sales in the area.

441 3rd Street Manhattan Beach CALocationwise, this one is no different at all from an August 2016 sale at 441 3rd (5br/5ba, 4320 sqft.), which came in $250K lower at $5.350M.

Both homes (500 4th and 441 3rd) run along Ingleside, one on the west side and one on the east. The rear corners of the homes are 10 yards apart. So you don't get a location similarity much more similar.

The earlier sale at 441 3rd had set a peak price for non-walkstreet homes in the area at the time. (And that was always their goal, listing at first for $5.800M.)

The $5.350M at 441 3rd had eclipsed a nearby sale that closed just a couple weeks prior in Aug. 2016, that being 516 4th (5br/6ba, 4320 sqft.), which closed for $5.250M.

Before those 2016 sales, no non-walkstreet, standard-sized new construction home in the South End had ever sold for more than $5M. Now there are three.

Dave had buyers in the mix for 516 4th and we recall gaming out the pricing at the time. You had to infer the value from the difference between walkstreet and non-walkstreet homes, land sales, etc. (By then, flat walkstreet homes in the South End had begun to crest past $6M.)

With $5.6M being the new high off the walkstreets, the question becomes, who's next?

There are a couple of new projects coming. Already on the market is a bold "brownstone" at 81 Morningside (5br/6ba, 4250 sqft.), directly across from Robinson Elementary, asking $5.975M. (And built by the same folks who did 441 3rd.)

549 3rd Street Manhattan Beach CAAlthough not new, 549 3rd (5br/6ba, 4000 sqft.) is a darling custom build sporting a 2013 completion date, but finished with all the styles you'd expect to find today. Design-wise, it was slightly ahead of its time. They're under $5M at $4.995M.

And last year saw 424 2nd (4br/6ba, 4200 sqft.), a custom 2015 build asking $5.399M down to $5.235M before leasing out. (Our link is to the lease listing.) It was hard to figure why that one wouldn't sell. It may come back this year.

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