South End Walkstreet Deal?

By Dave Fratello | March 27th, 2018

Once you've seen the flat/family walkstreets of the South End, it's kind of hard to get that very special neighborhood out of your mind.

If you've got young kids, that's an area to treasure.

However, the secret's out. The flat walkstreets have become one of the priciest pockets of Manhattan Beach real estate.

So why were two... or was it three?... listings recently priced so low, they looked like absolute steals?

417 5th Street Manhattan Beach CAThe most recent steal of a deal to take shape was 417 5th (4br/5ba, 3625 sqft.).

This is a custom-built 2004 Cape Cod on a quiet part of 5th.

Maybe you saw it last year, when it was marketed quietly. Or this year, with a launch price of $5.499M.

Time tolled and they decided to make two quick, sizable cuts just over a week ago. It was last at $4.999M, enough to get people jumping off the fence.

The relative bargain presented by 417 5th was easy to see.

332 7th Street Manhattan Beach CALook at one comp just a couple blocks over at 332 7th (5br/5ba, 4300 sqft.), a roughly similar home built in 2002 with some of the square footage in a basement.

It sold for $5.500M in October last year.

Lot sales along 5th went for $3.800M (316 5th, on the corner with Crest) and $3.300M (405 5th), both in Jan. 2017.

Meantime, since then, a flat walkstreet lot at 400 9th sold for $3.799M last April, and there have been similarly priced lot listings since. (See "Walkstreet Dirt Is Moving Again, Too," from earlier this month.)

So... 417 5th at $4.999M... was juicy.

So you know what happened once they dropped it to that number.

Multiple offers. Now they're in escrow. And off they go into the sunset.

Even if it sells in the very lowest 5's, it's still below some recent area sales OFF of the walkstreets:

500 4th Street Street Manhattan Beach CA500 4th St. (5br/5ba, 4175 sqft.) is new construction on a corner along Ingleside.

Sure, it's bigger than nearby 417 5th, and new.

But with a recent sale at $5.600M, it might have you asking: "Where's that walkstreet premium for 417 5th?"

Or go back a bit further to 516 4th (5br/6ba, 4300 sqft.) at $5.250M about 18 months ago.

That's more than a walkstreet house is selling for today?

404 9th Street Manhattan Beach CALast time we saw what looked like a true steal on the walkstreets, it was the onetime Asian modern 404 9th (5br/5ba, 4000).

Tax records show a sale at $5.200M in May 2017 before a significant stylistic remodel gave the home new life.

New life, but not a very new price. After the remodel, it sold for $5.300M in October 2017.

True, 417 5th is not as big as 404 9th, and it, too, might benefit from a light cosmetic remodel (there's a stark modern flavor to the dark flooring and some accents that push it away from that "bright, beachy" feel many might prefer).

But amid some of the not-so-screaming deals in the Sand Section, this one looks like it's shaping up well for both sides.

Extra credit bonus question: If the finished home at 417 5th sells somewhere near $5.0M, what does that do to the cottage/lot sale across the street at 420 5th, currently asking $3.699M? Discuss.

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