Monday, June 7, 2010

West Hollywood 2010 (First half): New Construction Sells for $440 - 500/sq ft; Despite Some Sales, Market Still in Doldrums

What they sold for. West Hollywood new construction is selling in the $440 - 500/sq ft range and a number of buildings with few sales finally had units close.

The Vue at 921 San Vicente Boulevard, with five units, had a second sale at $491/sq ft. (List price $999,000 -- closing price $840,000).

the vue san vicente8265 Fountain Avenue, with 7 units, had its first closed escrow at $501/sq ft (asking $537/sq ft).

8265 FountainHabitat 15 at 1322 N Detroit Street has had 5 sales (of 15 units) in 2010, with closings at $438/sq ft (asking $470/sq ft).

habitat 15But one, all 16 units at 841 Westmount are now sold. Five units closed in 2010 at $501/sq ft (asking $533/sq ft). By way of comparison, units sold for $542/sq ft in 2009 (asking $582/sq ft).
741 WestmountUnits at the Luminaire at 928 Croft Street are selling at $453/sq ft (asking $480/sq ft) in 2010. 7 of 12 units have closed this year.

928 Croft
One of the five units at 950 N Orange Grove Avenue sold for $400/sq ft ($413/sq ft), the lowest level in the West Hollywood area. (The 2,000+ sq ft area of these units skews the data, and we have excluded it from our "$440 - $500/sq ft" quote). 950 Orange GroveResale units in West Hollywood are averaging $444/sq ft in 2010, not much different from the higher-quality, undepreciated new buildings.

Many buyers are benefiting from the low prices of new construction as the business-minded sellers (developers, receiver, banks, and the like) are often more willing to make a deal than individual owners.

Prices are flat, plenty of inventory remains, and the market is still skewed in favor of buyers. Those who are qualified and can get into the still-expensive West Hollywood area have a smorgasbord of excellent options.