I’ve seen the price of dirt increase by ~$100-125k in the past 18 months but Kirk Brown thinks that his properties are worth 20% more than everyone else’s. Wonder why it fell out of escrow?
Unlike a lot of surrounding areas like Westchester, Mar Vista and Venice we haven’t seen a ton of McMansion development in El Segundo. In the areas mentioned the price of a tear-down is lower and the risk/return potential for developers is better. In Westchester, grandma’s house on a 6000 sqft lot is only $830k. That same (livable) home in El Segundo would list for $1.2 mil. The math speaks.
So while there are a handful of flips going on in town the numbers are low and for the most part because of the of the development rules in town, the cost of a tear-downs and the permit process we haven’t seen the McMansionization of El Segundo. Thank the Lord!
227 W. Oak Ave was listed as a very expensive tear-down price of $1.17 million. Yes, the schools in Westchester suck, it’s not the same community vibe as El Segundo but if you are developer and know that new-construction McMansions are selling for $1.5mil-$1.8mil why would you spend 40% more for your piece of property? We also know that the time to move houses above $1.5mil in El Segundo is slow.
So a round of applause that the price of dirt in town (plus the sales history) makes the economics and risk of developing in El Segundo rough for the developers sweeping Westchester and Mar Vista.