Burned out parcels in Pacific Palisades

[ZZGAMAZZ]

View attachment 97089

This is like typical East Coast new construction on small lots. $300+/- per SF including EP. $700 per SF is insane.

Think that's crazy. Imagine going 60 miles inland throughout very sketchy 'hoods where one can't find fixers for less than $500,000.

 

[gregb]

Thrirty-nine closed Beverly Hills rental in preceding 6 months, ranging from $40,000 to $100,000 per month.

Listing Status Current Price Bedrooms Total Baths Living Area Units00-24444817 Closed $60,000 4 6 484000-24475045 Closed $40,000 7 8 564200-24467219 Closed $40,000 7 6 520000-24461207 Closed $40,000 7 6 520000-24467213 Closed $40,000 4 5 520000-24461185 Closed $41,000 7 7 700000-24461221 Closed $42,000 4 5 520000-24429387 Closed $42,000 7 7 723000-24467235 Closed $45,000 5 6 500000-24461157 Closed $45,000 5 6 500000-25487496 Closed $47,500 4 5 425700-24401227 Closed $48,000 6 7 572400-25485599 Closed $48,000 6 7 770900-24412721 Closed $49,995 5 7 650000-24436443 Closed $52,000 8 10 800000-24436785 Closed $52,000 7 9 700000-24461175 Closed $55,000 8 10 800000-24369061 Closed $55,000 5 8 750000-24436733 Closed $55,000 5 8 750000-24461199 Closed $55,000 5 8 750000-24412722 Closed $59,995 7 9 650000-25479903 Closed $60,000 5 8 505400-24366545 Closed $70,000 7 13 1121000-24436149 Closed $72,500 6 7 860000-24472511 Closed $75,000 6 6 577900-24406163 Closed $97,900 7 11 1280000-24418809 Closed $85,000 6 10 1120600-24402727 Closed $40,000 4 5 374000-24369019 Closed $40,000 4 4 400000-24463955 Closed $40,000 5 5 410000-24377535 Closed $40,000 8 6 700000-24412713 Closed $40,000 8 6 700000-24436745 Closed $40,000 5 7 650000-24381815 Closed $45,000 5 5 414900-24467231 Closed $45,000 5 7 550000-24461233 Closed $45,000 5 7 6500SR-24008588 Closed $47,500 7 8 744400-24409999 Closed $48,000 6 9 950000-25482727 Closed $55,500 5 9 10359Information is deemed to be reliable, but is not guaranteed. © 2025 MLS and FBS. February 21, 2025 9:15AM

 

[Joe Flacco]

Think that's crazy. Imagine going 60 miles inland throughout very sketchy 'hoods where one can't find fixers for less than $500,000.

That is different from cost being $700 per SF for Q3 quality construction. Labor varies but materials basically cost the same anywhere in the country. The developer has to carry the $3.5m land but $700 per SF is still crazy.

 

[ZZGAMAZZ]

Thrirty-nine closed Beverly Hills rental in preceding 6 months, ranging from $40,000 to $100,000 per month.

Listing Status Current Price Bedrooms Total Baths Living Area Units00-24444817 Closed $60,000 4 6 484000-24475045 Closed $40,000 7 8 564200-24467219 Closed $40,000 7 6 520000-24461207 Closed $40,000 7 6 520000-24467213 Closed $40,000 4 5 520000-24461185 Closed $41,000 7 7 700000-24461221 Closed $42,000 4 5 520000-24429387 Closed $42,000 7 7 723000-24467235 Closed $45,000 5 6 500000-24461157 Closed $45,000 5 6 500000-25487496 Closed $47,500 4 5 425700-24401227 Closed $48,000 6 7 572400-25485599 Closed $48,000 6 7 770900-24412721 Closed $49,995 5 7 650000-24436443 Closed $52,000 8 10 800000-24436785 Closed $52,000 7 9 700000-24461175 Closed $55,000 8 10 800000-24369061 Closed $55,000 5 8 750000-24436733 Closed $55,000 5 8 750000-24461199 Closed $55,000 5 8 750000-24412722 Closed $59,995 7 9 650000-25479903 Closed $60,000 5 8 505400-24366545 Closed $70,000 7 13 1121000-24436149 Closed $72,500 6 7 860000-24472511 Closed $75,000 6 6 577900-24406163 Closed $97,900 7 11 1280000-24418809 Closed $85,000 6 10 1120600-24402727 Closed $40,000 4 5 374000-24369019 Closed $40,000 4 4 400000-24463955 Closed $40,000 5 5 410000-24377535 Closed $40,000 8 6 700000-24412713 Closed $40,000 8 6 700000-24436745 Closed $40,000 5 7 650000-24381815 Closed $45,000 5 5 414900-24467231 Closed $45,000 5 7 550000-24461233 Closed $45,000 5 7 6500SR-24008588 Closed $47,500 7 8 744400-24409999 Closed $48,000 6 9 950000-25482727 Closed $55,500 5 9 10359Information is deemed to be reliable, but is not guaranteed. © 2025 MLS and FBS. February 21, 2025 9:15AM

Awesome data. THANK YOU. --gregm

 

[ZZGAMAZZ]

Awesome data. THANK YOU. --gregm

gregb, Please allow me to be redundant and THANK YOU AGAIN FOR THE DATA. I'm very appreciative and often wonder where you been the past few years, and whether you're still in or near the San Antonio Heights neighborhood. Hope everything is well. GM

 

[Joe Flacco]

https://www.redfin.com/CA/Santa-Monica/911-Yale-St-90403/home/6762573

Here is one from the same builder that has sample pictures. $760 per SF not including the land is crazy.

 

[George Hatch]

That is different from cost being $700 per SF for Q3 quality construction. Labor varies but materials basically cost the same anywhere in the country. The developer has to carry the $3.5m land but $700 per SF is still crazy.

Fees and permits and holding costs add to the total. It costs a certain amount of money and opportunity cost to finance a $1M parcel for all-cash or 50% LTV land loan at commercial interest rates/terms, pay the property taxes for a couple years and make their way through the planning and permitting programs. It normally takes at least 18 months after site acquisition to build an individual home in the urban/suburban areas.

Plus, some of these properties in this area also lie in the Coastal Zone and have an additional 12-month lead time to get through the Coastal Commission. The point is, long lead times and high holding costs add to the risk level and these investors aren't working on 15% profit margins. A 35% profit margin won't work just anywhere but it can work in certain areas.

 

[Terrel L. Shields]

Unfourtently there will be all sorts of shady characters trying to steal old people's lots to flip them.

They like to call that "arbitrage" - I like to call it stealing.

 

[Joe Flacco]

Fees and permits and holding costs add to the total. It costs a certain amount of money and opportunity cost to finance a $1M parcel for all-cash or 50% LTV land loan at commercial interest rates/terms, pay the property taxes for a couple years and make their way through the planning and permitting programs. It normally takes at least 18 months after site acquisition to build an individual home in the urban/suburban areas.

Plus, some of these properties in this area also lie in the Coastal Zone and have an additional 12-month lead time to get through the Coastal Commission. The point is, long lead times and high holding costs add to the risk level and these investors aren't working on 15% profit margins. A 35% profit margin won't work just anywhere but it can work in certain areas.

View attachment 97130

Are fees and permits there fixed fees or a percentage? And do impact fees apply to tear down and build?

We have a lot of developer activity in the $1+m tear down range. House like what TJH builds there would sell for around $3.5m for 6500 SF finished. Minus $1.2m for the lot comes out to around $350 per SF which includes EP.

 

[George Hatch]

RE development is a very competitive business, especially in the upper price ranges. Same with RE sales. IRL these homes are selling at these prices, not at 70% of these prices.