South Bay Quarterly Performance
If you have watched my recent quarterly updates on IGTV, you would know that Manhattan Beach and Redondo Beach had really rough first quarters that might make some market watchers nervous.
The positive news, Hermosa Beach seems to be thriving. The small beach city is up across the board in the first quarter and even more so in the luxury market. More specifically, big Hermosa Beach houses with big Hermosa Beach views.
If you have not seen my quarterly updates, you can find them on my IGTV through my Instagram account @richardhaynesrealestate.
Record Sale in Hermosa Beach
Hermosa Beach completed its highest sale of all-time just two weeks ago at $16 million. And, the sale was not even on The Strand…
- 2906 Tennyson Place
- 5 bed, 6.5 bath, 7,267 sq. ft., 14,918 sq. ft. lot, built in 2015
- Sold: $16 million
This amazing property had jaw dropping Queen’s Necklace views. Arguably, the best view of any single-family home from Redondo Beach to Manhattan Beach, this home was situated on a massive 14,918 square foot lot, with an infinity edge pool and Jacuzzi, a 7-car subterranean garage, and many other spectacular features.
It is hard to put a price on this one but according to a local, publicly-traded company with its headquarters just a block or two away, it was worth $16 million to them…a much higher price than any Strand sale in the city.
Other Notable Sales in Hermosa
That sale was preceded in the Hermosa Beach Hill Section by another big home with big views.
- 714 Marlita Street
- 6 bed, 5 bath, 8,390 sq. ft., 9,155 sq. ft. lot, built in 2013
- Sold: $6.85 million
This property, although not close to $16 million, broke its own sale of $6 million just three years ago. I am starting to see a lot of buyers fight back on paying higher prices on short-term resales, however, this listing had no problem landing a 12% premium to its 2016 sale…and in only two weeks!!!
And to kickoff the year, another property (off The Strand) in the Hermosa Beach Sand Section fetched a high price for its home and roof top views…
- 107 24th Street
- 5 bed, 5 bath, 4,100 sq. ft., 2,403 sq. ft. lot, built in 2018
- Sold: $7.325 million
For a home not on The Strand, this was the second highest sale in the Hermosa Beach Sand Section, ever.
The owner of this 24th Street home landed about a $4.5 million premium in price compared to the original purchase price of the lot back in 2015. After a couple million dollar construction budget, one could argue the Seller received close to a $2 million profit in four years. Not terrible.
The closest comparable to this home is in Manhattan Beach at 212 16th Street (4 bed, 4 bath, 4,100 sq. ft., 2,700 sq. ft. lot, built in 2019) that sold for $8.395 million. Although in Hermosa Beach, 24th Street has all the same flash but significantly better views from its roof top deck than a lot of its Manhattan Beach walk street counterparts.
Hermosa Beach is on the Rise
One has to wonder if the strength in the Hermosa Beach market will continue after these sales. A new escrow and current listing might suggest yes.
This over-sized lot consisting of almost 10,000 square feet and the potential for big views went to escrow quickly.
- 720 24th Place
- Combined lot of 9,475 sq. ft.
- In Escrow Asking: $3.2 million
A proper build on this site would put an owner all-in at the $6 to $7 million range. A bullish escrow in areas without a $6 million+ comparable sale.
And what used to be believed to be an aspirational price of $22 million to some agents, 1901 Manhattan Ave may not look so aspirational anymore…
- 1901
Manhattan Avenue
- 6 bed, 8 bath, 9,100 sq. ft., 7,640 sq. ft. lot, built in 2017
- Asking: $22 million
If huge homes with rare elevated views are selling fast and for record prices, then maybe 1901 Manhattan Avenue will be compelling for the right buyer? Even at $22 million. Side note: this one canceled its listing just a few days ago.
I wouldn’t hold my breath on Manhattan Avenue selling, but Hermosa Beach homes with big views continue to surprise many to the upside, and there is plenty of data to support the continued strength!
Richard Haynes
DRE: 01779425
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The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]