Thursday, April 9, 2009

950 N Orange Grove Avenue: "Builder's Close Out"

Four (more) architectural lofts in a five unit complex east of Fairfax in West Hollywood have come to market at “builder close-out prices”.
1220 N Orange Grove Los AngelesAddress: 950 N Orange Grove Avenue, Los Angeles 90046
Asking price: $849,000 - $1,095,000
Unit type: 3 bedroom, 3.5 bath
Square footage: 2,078 – 2,150 sq ft
Number of units in development: 5
Number of units sold: 0? Unclear – one unit is not currently marketed
Days on Market: 14

These gargantuan units have over 2,000 sq ft of living area on four levels, and 3 bedrooms and 3.5 baths – enough room for an entire family.
1220 N Orange Grove Los Angeles 1Despite their size, the monthly cost for even the most affordable unit ($850,000) may be considered onerous. Do the math:

$850,000 purchase price

First, cough up the 20% downpayment -- $170,000 -- in case you have that lying around (say under your mattress.) Add in mortgage points and closing costs, and total cash requirements to buy the unit are $180,000.

Then, finance the remaining 80% with a 30-year loan -- $680,000 @ 4.875% = $3,599/month
Add in homeowners fees: $450/month
Add in property tax (approximately): $815/month

Total monthly nut: $4,863 – for the most “affordable” unit
1220 N Orange Grove Los Angeles 2Even with interest rates at 50-year lows, the cost of owning is far more expensive than renting. With the glut of unsold condos, a similar unit could be rented for $3,000 - $4,000/month (and the landlord will throw in a free flat-screen TV). And you can keep your $180,000 in a safe investment like a CD (or under your mattress).

Despite the polished, glimmering concrete floors, the spanking freshness of ceramic tile and Grohe-esque fixtures, and the generous, loft-like space, the price is too high.

You might see this pricing at a central West Hollywood or Beverly Hills or a Westside location – but not East of Fairfax … not at Romaine.

Bottom line: Good product. Wrong price. Wait it out.


NM. said...

Just curious how much those lofts should be priced at ? Went to take a look at them when they first opened. Felt instantaneously in love with them. But at that time they were selling for 1.390.000...thought they were wayyyy overpriced, especially for the location they were in. What would be a fair price for let's say unit #5 if I were to buy it in 30 days ?

Thanks for your imput.