Strand Heavyweight Closes for $21M

By Dave Fratello | June 1st, 2017


It was almost exactly 2 years ago when the owners of the ultra-prime, oversized corner lot at 1000 The Strand decided to sell.

Their asking price for the ~5,000 sqft. lot looking straight at the iconic Manhattan Beach pier: $28,900,000.

Needless to say, that was a very big number. Here at MBC, in "$29M? Can We Talk?", we called it a "gigantic, stratospheric, moonshot-crazy number." Still seems fair.

We noted that scarcity was the rationale. Meaning: How many lots are there like it? Maybe none.

Neighboring 108 The Strand also has a 5000 sqft. lot, or about 50% larger than a typical Strand lot. But that's not on a corner and it is fully built up.

There are some larger lots along The Strand (and we're not considering the triple-lot assemblage in the South End). But none are for sale. And none are quite so near town or the pier. 

So if you could appreciate the joys of a large corner lot with an endless view of the Pacific and reach-out-and-touch-it views of the pier, this was it.

OK, so they were off by $7.9 million in that first listing. People make mistakes.

It's now sold 27% off the start, at a still-huge $21.000M.

Now, let's look at that again. $21M. That's a bit over $4,200/PSF for dirt alone.

1700-the-strandMultiply that by lot size for what seems like the biggest single-lot comp on The Strand, a standard 3339 sqft. corner at 1700 The Strand (pictured), and you'd get just $14.000M there. (The buyer of 1700 The Strand actually paid $16.000M off-market back in April 2014. And a new home is developing nicely there now.)

Hey, maybe this $14M number is no coincidence... it's also the actual sale price for one of the last big public-market regular lot sales on the South End of The Strand: 304 The Strand, back in July 2015. (Yes, it's been nearly 2 years.)

In between 304 The Strand and 1000 The Strand, both at $4,000+/PSF for dirt, you had one that people want to call an anomaly: 716 The Strand in January this year at $9.300M.

That was "only" $2,670/PSF for land. The argument there is that 716 is a bit too close to certain public facilities at 8th Street to get top dollar.

Meantime, there are two active public-market Strand offerings:

2400 The Strand (corner, 3500 sqft. lot, $12.999M, $3,722/PSF for dirt), and

1912 The Strand (midblock, 3325 sqft. lot, $12.499M, $3,759/PSF for dirt).

Going way back to the top, you might recall that 1000 The Strand was once "competing," more or less, with 2722 The Strand, a 6925 sqft. corner much further north.

2722 was last seen at $25.650M, before renting out instead of selling. (See "Both Strand 'Battle' Contestants Have Now Quit.")

Oh, and a final point on the 1000 Strand sale... The agent who listed it didn't exactly get punished for the sellers' overreach. That agent represented the buyer, too... which would make anyone's day.

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