Friday, May 20, 2011

West Hollywood Area New Construction Update 2011: Projects Sell Through at $390 - $450/sq ft

2011 New Construction Condo Round-Up

In 2009-2010, years that many developers would like to scrub from the record books, a raft of great West Hollywood condo projects came to market.  The level of architecture, design, planning, and plain out "cool" factor far exceeded the new construction that preceded it.

And 2009 - 2010 was an exciting time for condo buyers.  Developers either had to slash their prices, or worse (and better for buyers), head into receivership or loan workout and then "red tag sale" these excellent units to move the inventory.

Bottom line is that units sold from about $390 - $450/sq ft, and buyers were able to purchase condos on the best terms of a generation: best loans, best quality, best price. 

And here's the round-up:

Harper West Hollywood --  1250 N Harper Avenue, West Hollywood 90046

In ten months, all of the 32 units are now in contract, and 27 units have closed.  Sale prices ranged from $485,000 for the the (5) ground floor one bedroom, 1.5 bath units of approx. 1,382 sq ft.  The top price paid was $890,000 for the largest penthouse (1,897 sq ft).  Units were listed at an average of $415/sq ft and sold at exactly $400/sq ft.  This project sold quickly and in our opinion was an excellent deal for buyers.

A video tour of a Penthouse unit:

Read our previous postings on Harper West Hollywood:

Habitat 15 -- 1322 N Detroit Street, Los Angeles 90069

This high-style building in the east part of West Hollywood designed by architects Predrock_Frane now has 14 of 15 units closed.  All layouts are 2 bedroom, 2.5 bath and varied in closed price from $520,000 (1,207 sq ft) to $660,000 for the largest unit (2,013 sq ft).  Units were listed at $433/sq ft and sold at $410/sq ft.  This is an excellent project in a somewhat "edgey" Hollywood-adjacent neighborhood.  But once you get inside the units, it's grand living!

Read our previous post on Habitat 15:

    Lofts @ Cherokee Studios -- 751 N Fairfax Avenue, Los Angeles 90046

    The Lofts @ Cherokee Studios has an incredible array of green features and top design courtesy of Pugh + Scarpa Architects.  It also has the legacy of being built on the site of the recording studio where Michael Jackson recorded "Thriller" and David Bowie recorded "Station to Station."  After 18 months on the market and insufficient sales to pay the huge construction loans on the project, the project was sold in a Trustee's (foreclosure) Sale in March 2011 for $5.8 million.  Stay tuned for further activity on this project.  There are 12 excellent units that will come to market, ranging from 1,197 sq ft (2 bedroom, 1 bath + mezzanine) to an incredible 2,275 sq ft penthouse (3 bedroom, 2.5 bath).

    Read our previous post on Lofts @ Cherokee Studios:

    817 Alfred -- 817 N Alfred Street, Los Angeles 90069

    817 Alfred after being a stalled construction project for many years, was taken over by a new owner, completed, and put on the market in August 2010.  Only one of 18 units is now available.  Most units have a 2 bedroom, 2.5 bath layout with 1,400 - 1,700 sq ft.  Prices ranged from $599,000 - $749,000. 7 units are recorded as having been closed, with list prices of $453/sq ft and sale prices of $445/sq ft.  Sale prices ranged from $625,000 to $729,000.

    855 Croft -- 855 Croft Street, Los Angeles 90069

    About 18 of 33 units are now sold, and the building is now occupied.  The developer is holding firm on prices, and is capturing a higher $/sq ft than competing projects (although the units are selling at a slower pace).  All non-penthouse floorplans have 2 bedrooms, 2.5 baths, 1,450 sq ft with a 107 sq ft deck.  Prices range from $689,000 for a 3rd floor unit with obstructed views to a $1,449,000 sq ft penthouse.  It is noteworthy that one of the penthouses listed at $1,390,000 sold for $1,240,000 or $675/sq ft.

    See a video walk-through of a Penthouse unit:

    Read our previous post on 855 Croft:
      123 N Kings Road, Los Angeles, CA  90048

      This Beverly Center-area 12-unit complex, variously known as "Two Kings", "Kings on Kings" ("One and a Half Kings" anybody?) sold in receivership in the winter of 2010-2011, with sale prices ranging from $545,000 to $645,000.  The location of this building across from the Kings Road Cafe and down the street from some of the best restaurants, cinemas, and shopping, can't be beat.

      This amounts to a $401/sq ft list price and a $390/sq ft.  Funny that two years ago these units had list prices of $949,000 - $1,185,000.  These units finally cleared at market prices that are likely at or below the developer's construction cost.

      Read our previous post on 123 Kings:
      Legendary Place - 1411 N Detroit Avenue, Los Angeles, CA  90046

      Legendary Place came on the market more recently and has enjoyed steady sales.  List prices are $411/sq ft, closing prices are $388/sq ft.  A penthouse units sold for $975,000 and the least expensive unit sold for $550,000.

      Orange Grove Lofts - 1220 N Orange Grove Avenue, West Hollywood 90046

      The Lofts at 1220 N Orange Grove Avenue (nee 1220 Art Lofts) was a building that failed to sell as a traditional sale in 2009, went into receivership, resulting in deeply discounted prices and about the lowest $/sq ft sales in West Hollywood for a high-quality product.  These 2 br, 2.5 ba multi-level units had Bertazzoni ranges and other high-end appliances / finishes and surround a central courtyard.  They are located down the street from Whole Foods just east of Fairfax.  Sale prices for the approx. 1,900 - 2,000 sq ft units ranged from $665,000 - $815,000, an average of $370/sq ft and $716,000 per unit.  Note that in its previous incarnation as 1220 Art Lofts, list prices averaged $850,000

      Read our previous post on 1220 N Orange Grove Avenue:
        Hancock Lofts - 901 Hancock Avenue, West Hollywood, 90069

        Mercury must have been in retrograde when the development execs at Lee Homes set out to build, market and sell what was certainly the most awaited project in West Hollywood, the Hancock Lofts.  Located in the center of Boystown in West Hollywood, this hip, 31-unit project had everything going for it: loft design, great pool, and an unbeatable location.  But with stratospheric asking prices of $900,000 - $1,400,000, it was no surprise that only two units sold.  About a year later, the developer chose to "sell" 15 units at "auction", with ridiculous teaser prices of $395,000.  The auction proved to be a free-for-all where buyers' low offers were countered at stratospheric levels.  Two years later, some of the units are for lease with stratospheric list prices of $4,900+/monthIn better times, some of these units are destined to creep back on the market for sale.  In the meantime, you can lease with a much lower risk (and cost) than owning.

        Read our previous posts on the Hancock Lofts:

        Luminaire - 928 Croft Avenue, Los Angeles 90046

        Buyers liked the 12-unit Luminaire from the start and the building sold quickly at an average price of $797,500  and $428/sq ft.  The 1 bedroom top floor unit at $550,000 seemed like a particular bargain.  These well-appointed units included bathrooms with Grohe fixtures, and kitchens with Bosch appliances, except the cooktop which is a cool Italian design by Smeg. Kitchen cabinetry is by Gatto Cucine, an environmentally friendly, modular cabinetry system from Italy.  You may be lucky enough to one day get a unit here on resale.