Monday, May 28, 2007

Sticker shock north of Montana

This really got me a week ago, asking over $5 million north of Montana, east of 7th. I remember when $3M was high-end, then $4M, now they're trying to pass $5M. It's at 333 20th, 5 bed/6.5 bath, asking $5,095K, featuring all the usual stuff. For an ordinary-looking house on a 60' lot. Aren't you supposed to get a faux chateau for that? (Actually 127 17th crossed the $5M line first, asking $5,395K, sold in March, but I think that's a double lot with tennis court.)

Then there's 506 Palisades, 4 bed/4 bath, asking the extraordinary $7,950K. That's higher than anything west of 7th. Two listings (222 Palisades and 336 Adelaide) asked over $6M last fall (now off market, no sales prices recorded), and 2407 La Mesa - overlooking the Riviera Country Club - sold for $10.5M 12/12/06. But this is just a 50' lot among 100' lots, with no view, across the alley from apartments.


Craig said...

506 Palisades is a bizarre house. I know someone who lives across the street and I have seen this house at night and there are some interesting neon lights that can be seen (i don't know if they are part of the security system or what). However, I really like this block and the location is one of the nicer ones in all of Santa Monica (I guess being across the alley from apts isn't great though). Also, if this lot is so much smaller then it seems odd they are asking so much.

I guess the bust starts at the margins and works its way up to the high end this is why we don't really see the high end homes suffering too much yet?

The for sale sign went down on the $3M house on the 900 block of 25th so it looks like all went well with escrow and the guy who bought it is still trying to FSBO his empty lot across the funny to drive by and see the big sign on the fence. I think I posted about this a while ago but I am interested to see what the empty lot sells for.

Westside Bubble said...

Yes, Palisades is a beautiful street. The grass circle in the middle is an official city park, called Goose Egg Park.

Back around 1990 it seemed the higher-priced areas led going up, and then led going down. So far, though, they don't seem to be suffering much around Santa Monica.

Anonymous said...

Los Angeles County Assessor has 333 20th St last indicated sold date of 3/15/07 for a sale price of $4,675,046. The assessessed value is Land $1,300,467 and improvements of $180,000. Is this property being flipped?

506 Palisades is on the LA assessor books at Land of $1,534,590 and Improvements of $1,141,900 with a recording date of 4/14/05. Seems like alot of profit built in to that current sale price.

I wonder what the debt is on both these properties.

I didn't look up the numbers on the other propertis but these two are good examples of greedy sellers.

Craig said...

Ask and you shall receive. Here is the info for 333 20th Street:

Recent purchase:

Buyer: GREENE VELVET LLC (Company/Corporation)
Buyer Mailing Address: 201 ALMA REAL DR, PACIFIC PALISADES, CA 90272
Seller: FLETCHER MUNSON INVESTMENT INC (Company/Corporation)
Property Address: 333 20TH ST, SANTA MONICA, CA 90402
**************************** SALES INFORMATION *****************************
Sale Date: 7/6/2006
Recorded Date: 3/15/2007
Sale Price: $ 4,675,000 (Full Amount Computed From Transfer Tax)

Normally I don't expose who the actual buyers and sellers are...but here we have two "investment" corporations involved.

Anyways, Fletcher Munson purchase details here:

Recorded Date: 4/19/2002
Lender Type: BANK
Loan Amount: $ 2,625,000
Type of Financing: VARIABLE RATE

Fletcher Munson appears to be something created by the owner who bought back in 2002 because the owner was refinancing and taking multiple HELOCs after Fletcher Munson bought in 2002...seems odd that you can buy a house in the name of a corporation and then be taking HELOCs in your own name...So is everyone in Santa Monica rich or just fraudulent?

And what is going on here?? Aren't houses supposed to be used for living in? And aren't houses supposed to be purchased by families? I grew up in Santa Monica and I love Santa Monica but the more I find out about what has gone on over the past 5 years the more I question everything about the westside. I am distgusted.

Craig said...

506 Palisades:

nothing exciting as far as mortgage records. Zillow doesn't even show this address but where it would be is a very narrow lot...did 510 Palisades get combined with this lot? Can't quite tell but regardless, it seems like this asking price is in the "dreaming" area.

Westside Bubble said...

The LA Times L.A. Land blog picked this up! Click to see their readers' comments.

Anonymous said...

Oh come on. What's with you crybabies? You especially, Craig.
When I bought my house North of Montana in 1988, it was because the area was nice for families,it was close to my office, the air was clean(er), and the schools were good. People thought I was nuts to pay what I paid, but the prices were increasing every year, and I felt I had to jump in; sink or swim. No one helped me buy the house, or pay the mortgage, and I worked hard to do so. None of that was easy. I'm a professional, and I'll bet I work harder than you do. Now that I'm selling, why wouldn't I want to get top dollar for my house, my efforts, and my foresight in buying in a good area? Please don't try to tell me you'd sell for less than you could get in the same situation. When all is said and done, selling a house is a business transaction. An emotional one. If you want to live N. of Montana, you'll pay what the market will bear. "Greedy seller?" Jealous wannabes.

after the top said...

I certainly wouldn't fault you for trying to get top dollar. (nice to hear that you really work hard! That has a lot to do with housing values.) But I expect you wouldn't be able to, nor would choose to buy in the current environment. And I think the point most are making here is that whomever buys at these prices is making a poor financial decision and better not count on any appreciation (and being under water) for quite some time.

sexy said...