Friday, July 24, 2009

West Hollywood New Construction Sells for $440 - $540/sq ft

During the past two months, mid- to high-end new condos are selling between approx. $440 – 540/sq ft, depending on the building, floor and neighborhood. Updated 9/26/09: For the last two months, new construction has been selling for $380 - 530/sq ft and many condos are going into contract.

The units sold range from 1,450 sq ft – 1,720 sq ft and had sales prices ranging from $645,000 - $939,000. Sale prices on new construction seem to cap around $950,000.

Properties that need to be financed by a jumbo loan (over $729,950 in Los Angeles County) are out of reach of most buyers because of the high interest rates and the difficult underwriting requirements of these loans.

The product may be excellent – but the qualified buyers are few – which means that only price reductions (or a return to the go-go days of financing) will salvage this $950,000+ market.

West Hollywood is priced at a premium to Downtown Los Angeles where lower floor units in buildings such as EVO South or Concerto are selling in the $380 – 420/sq ft range.

Here are some sales of new construction in West Hollywood during the past two months:
718 Croft718 N Croft Avenue, Unit #201 with 3 bedrooms, 2.5 baths, 1,718 sq ft of living area, sold for $850,000 ($495/sq ft).
718 Croft718 N Croft Avenue, Unit #301, with the same layout as Unit #201 -- 3 bedrooms, 2.5 baths, 1,718 sq ft of living area -- sold for $890,000. In this building, being one floor higher is worth $40,000 ($518/sq ft).

7917 Willoughby7917 Willoughby Avenue, Unit #3 with 2 bedrooms, 2.5 baths, 1,577 sq ft of living area, sold for $755,000 ($478/sq ft). This building is located at the corner of Fairfax Avenue.

7918 Willoughby7917 Willoughby Avenue, Unit #6 with 2 bedrooms, 2.5 baths, 1,577 sq ft of living area, sold for $755,000 ($443/sq ft). This unit has a less desirable view -- but the unit is nevertheless excellent for this price.
1351 Havenhurst1351 Havenhurst Drive, PH#2 with 2 bedrooms, 2 baths, 1,476 sq ft of living area, sold for $799,000 ($541/sq ft). It’s no surprise this unit commanded the highest $/sq ft price – it’s a penthouse unit.
1430 Vista1430 N Vista Street #1 with 2 bedrooms, 3.5 baths, 1,800 sq ft of living area, sold for $939,000 ($521/sq ft). This unit is top-notch, and commanded an impressive price for this east part of West Hollywood.

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