Some argue that the most prestigious Manhattan Beach addresses outside of The Strand are the coveted walkstreet locations west of Highland surrounding the pier. Others counter that notion with a Hill Section address as more prestigious.
I say, Potato, puh-ta-toh. They are all simply amazing places to live.
Arguments aside, last week there was a record Manhattan Beach walkstreet sale on a standard-sized 30’ x 90’ lot.
The local home market needs record comps to help grow all other neighborhood values. This recent sale is a strong buoy for the Manhattan Beach luxury market amid sky-high mortgage rates and many saying that we are staring directly into the eye of a coming recession.
Let’s look at recent sale history in the 100- and 200-block surrounding the pier.
Past 365 Day Sales
The last calendar year has not brought a ton of on-market activity in the Manhattan Beach walkstreet surrounding the pier.
There have been multiple land-type sales and duplex/triplex sales, but nothing major in terms of high pricing.
Below are some examples:
124 2nd Street, Manhattan Beach
3-beds, 2-bath, 1,750 sq. ft.
This in escrow listing will likely go down as a land sale. The existing single-family home is in rough condition and likely not worth saving thanks to the small footprint.
Its main feature is the one-unit structure allowing a new owner to build as they please, avoiding any complications from the Coastal Commission requiring replacement of multiple units. Chalk this one up as a land sale.
133 16th Street, Manhattan Beach
3-beds, 2-baths, 2,559 sq. ft.
This property is an over-sized duplex with a large 3-bedroom unit that enjoys the walkstreet and a small one-bedroom unit sitting in back on a second story. The property offers a multitude of options for investment, remodel, and “land banking” for its new owners right around land value.
In full disclosure, our brokerage represented the buyer.
209 19th Street, Manhattan Beach
3-bed, 4-baths, 3,472 sq. ft.
And finally, this listing represents a “gray area” sale where the home was updated and offered a larger footprint, however, it was not up to brand new construction standards or size.
So, as you can see, there were no “wow” new construction specs or updated large homes to push values higher in 2023.
Prior 2022 Sales
The early-to-middle 2022 sales offer better insight to higher-priced closings on the Manhattan Beach walkstreets.
204 19th Street, Manhattan Beach
5-beds, 5-baths, 4,260 sq. ft.
Built in 2005, this home would be considered dated in many eyes, that’s said, its 4,260 sq. ft. of space is significant. The price point sets a floor on brand new build prices – but just how much is that exact premium if this is the floor?
225 7th Street, Manhattan Beach
5-beds, 5-baths, 5,143 sq. ft.
Perhaps it is close to a $1 million premium? Although there is close to a 1,000 sq. ft. difference in this example so it is tough to gauge.
This lovely 2017-built beach plantation home sold for almost $9 million in March of 2022 and was really the wow sale of the past two years to help measure larger, newly built homes on the walkstreets.
But as of last week, this sale was really blown out of the water. See below.
Record Sale Off-Market
First, check the sale which is the main topic of this week’s blog post:
221 19th Street, Manhattan Beach
6-beds, 7-baths, 5,650 sq. ft.
This 2019 spec home resold to a new buyer off-market to kick off August. It landed a massive price compared to recent comps at $12.8 million.
It is rare to see single-lot sales on the walkstreets for above $10 million, so commanding another $2.8 million is an amazing feat and fabulous for the neighboring property values.
Back in 2019, this was a stunning modern spec development with a huge footprint of 5,650 sq. ft. and wonderful use of all four levels, including a chic basement level. It failed to crack $10 million and was lucky to close on February 3rd, 2020 for $9.7 million – right before Covid-19 shut down the entire globe – or it could have sold for less.
All in all, the buyer enjoyed a wonderful “shelter in place” home in Manhattan Beach for the better part of 3.5 years and banked an almost $3 million premium to their original acquisition.
It is truly a high watermark sale on the walkstreet and a bullish comp for the overall Sand Section marketplace.
There is not much more to say here other than a rising tide lifts all ships.
This massive resale of a top-flight spec home for $12.8 million is about as strong of an endorsement of the Manhattan Beach home market as we can share.
Without question, this sale should boost land values for old beach bungalows, existing newer-built homes, and give developers reason to be more confident around their build finishes and prices.
The Manhattan Beach market remains strong despite affordability issues throughout the state because it may not matter for a city where eager all-cash buyers seem to never be in short supply.