A bombshell home sale wrapped up escrow last week at 1000 The Strand in Manhattan Beach. The massive south end corner lot officially closed for $21 million becoming the first residential sale over $20 million in Manhattan Beach. In fact, according to the MLS this was the highest sale for a residential property not only for Manhattan Beach, but also Hermosa, Redondo, and the entire Palos Verdes Peninsula.
Originally asking $28.9 million (an outrageous price then and now) at the end of 2015, the property was on and off the market over an 18-month period steadily cutting the price all the way down to $23.9 million in January until it accepted an offer on May 1st and closed 30 days later.
Fast Paced 2017 after a Slow 2016
This recent record sale will set a new value on Strand prices and drive the 2017 Strand market after a very slow 2016. Last year, there were only four on-MLS Strand sales with zero sales on the Manhattan Strand. Only about five months into this year, there have already been six sales with three in escrow. By the end of the month, it is quite possible we will see sales doubling from the previous year in only half the time. That is a big change!
Manhattan Beach
With zero on-MLS sales in 2016, Manhattan Beach has had three fascinating closings. To start off the New Year, it seemed like the Manhattan Beach Strand would continue its slump with 716 The Strand closing at $9.3 million. That was the lowest south end Strand single-family home sale since 2012 when 108 The Strand sold for $7.05 million.
The pendulum took a major swing, however, as two months later 104 The Strand , a 6,000 sq. ft. new construction home sold for a record $18,400,000…single-handedly bringing the beach front market right back to life.
And of course then that brought us to the grand daddy of them all, the $21 million sale of 1000 The Strand. Perhaps there is more to come for Manhattan Beach?
Hermosa Beach
Hermosa Beach has almost matched all of its sales from last year with three completed escrows and two currently pending. There are two sales to date that I find most interesting.
This first sale in north Hermosa is a cleared corner lot at 1942 The Strand sold for a cool $8.35 million. The neighboring property is currently being developed and could be a nice comparable for the new land owner.
The second sale was a spec home at 1540 The Strand sold for $14.15 million (owner paid $6.8 million back in 2013). The beach front address definitely got this one done, as it was not the nicest home we have seen on the water. This sale is a shot in the arm for Hermosa Strand prices, as the price could have been a much higher with a better home. We will see how the market values the next Hermosa sales from this interesting property.
Best Deal on The Strand?
Did you see 72 The Strand #6 in Hermosa Beach asking just $1,945,000? It went fast locking in a deal after only two days on the MLS. It may not be a luxurious beach home considering it is a condo in a 6-unit building in dire need of repairs. But when compared to the $14 million, $18 million, and $21 million home sales discussed in this blog, this is a unique chance to own the South Bay’s quintessential lifestyle with millionaires and billionaires as your neighbors.
All in all, The Strand is showing signs of life. Let’s see if it continues.
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]