They Hit 3.6 and 3.7 in the Trees

By Dave Fratello | September 2nd, 2013

We weren't exactly skeptical, but we were surprised early this year when new construction at 705 26th (5br/4ba, 4875 sq. ft.) was listed, during the framing stage, at $3.599M.

In a post in February, we tried to look at some comparable heights hit in past years. Mainly we saw similar new construction hitting $3.2M-$3.375M at the peak of the mid-2000s bubble.

Most of those homes we not near the plus-plus size of 705 26th, where the basement added about 1300 sq. ft. above the other properties.

Now, not only has 705 26th sold for asking price, its near-twin, developed at the same time on a (former) double lot, has sold for more.

That'd be 709 26th (5br/4ba, 5120 sq. ft.), slightly larger, and slightly pricier at $3.700M.

Not only are these sales numbers major eye-openers, the profitability on these projects is even more impressive. 

Almost exactly a year ago, in July 2012, the double lot – legally two lots, owned by the same party and used as a single lot all along – was acquired for $1,062,500 per parcel. The lot sizes are each 5120 sq. ft., both slightly larger than normal for the area.

Lot prices have skyrocketed since that off-market deal was made. We hear tell of a nearby full-size lot where offers of $1.5M and higher were actually rejected. (What, they'll get more later? TBD.)

After that nice start with fairly cheap land, the project here was bold and visionary, digging down to get those basements and their added square footage into the mix, allowing for the big asking prices. The Cape Cod and Beach Plantation styling were only going to grow in popularity as the builders toiled – they're today's must-have designs.

Put simply, both of these homes blew away the prior highs for north-of-Valley homes on single lots. To reach this price territory in the Trees, you have to be in the Martyrs neighborhood or nearby John or Palm. Well, until August 2013 you had to be. Now the bar's higher.

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NOTE: Our post in February did not account for an off-market sale from mid-2012 at 2204 Palm. That's a super-prime corner location, and the newer (2008) build boasts a basement and comparably big square footage – 6br/5ba, 4935 sq. ft. It sold new in 2008 for $3.3M and in June 2012, off-market, at $3.500M.

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