Tuesday, March 3, 2009

7917 Willoughby Lofts: Cool, Modern in West Hollywood

7917 Willoughby Avenue, West Hollywood, CA 90046

Asking price: Originally $795,000 - $1,189,000 -- Relisted --
(updated 4/22/09)

Unit 7 -- Penthouse -- 1701 sq ft -- $995,000
Unit 2 -- 1,655 sq ft -- $790,000
Unit 3 -- 1,577 sq ft -- $770,000
Unit 6 -- 1,434 sq ft -- $695,000
Number of units in development: 8
Number of units sold: 4
Days on Market: One year +

The townhouse style lofts at 7917 Willoughby Avenue have a great contemporary look, including really cool metal sheathing covering the building's block-like exterior. The units, all 2 bedroom and 2.5 baths, with superior finishes, vary in size from 1575 sq ft to 1715 sq ft and were designed by noted architects Lorcan O'Herlihy.
7917 Willoughby West Hollywood Living - KitchenOnly two of the eight units have sold, for $810,000 and $830,000, close to the asking price. (Note that the original asking prices back in May 2008 were just under $1 million - $1.3 million+) Why are these great-looking lofts not selling?

Two simple answers: price and location.

Take the $830,000 sale. With a 20% downpayment ($166,000) your monthly "nut" including property tax and homeowners fees (around $380/month) amounts to about $4,950/month.

Times have changed. Take Unit 2 at a sale price of $770,000 . With a 20% downpayment ($154,000) your monthly "nut" including property tax and homeowners fees (around $380/month) amounts to about $4,378/month at the current low 4.875% interest rates. A buyer can benefit from a $10,000 California tax credit for new construction and possibly an $8,000 first-time buyer credit. (updated 4/22/09)
7917 Willoughby West Hollywood Master - DeckYou've put down $166,000 and you're paying almost $5,000 per month to live in gritty east WeHo, close to Fairfax, across the street from a school yard? Why buy a townhome when you can buy a single family home in that area for the same price or less? Or, why buy this lovely townhome when you could rent an equivalent property for far less?

The developers picked a great design and a seriously inferior location. The two nicest units are priced at almost $1.2 million -- far above what any current buyer will pay.

Bottom line: great townhomes and the prices are coming down to earth -- jump on board, these are starting to be good buys (updated 4/4/09)

Jamie Adner