A reader sent me an email that 425 W Oak changed hands from Gina Hoffman to Halton Pardee. I mentioned in a previous post that Pardee also took over the listing on West Maple. Looks like someone in Venice has decided that El Segundo is the best place to make a buck. Little do they know that just like surfing at Venice Pier, El Segundo is a bit of a locals only area.
Like all the other out of towner agents Penny Muck of Hilton Pardee is about to get schooled on the economics of El Segundo. And from what I hear the flipper/designer is also about to get schooled on how El Segundo ain’t the new Manhattan beach and sure as shit ain’t Venice Beach.
So Hilton Pardee takes over the listing and knocks 1% off the price to $2.467 mil. I guess I had not been paying attention because this giant monstrosity started at the ridiculous price of $3.1 mil! Ladies and gentlemen that is 20 effing percent! I smell blood in the water. Paid $1.075 mil for a tear down and at $400/sqft to build, plus 15 months carrying costs, plus another $45k in soft costs, plus another $120k for commission I’d say someone is about to get fucked. Even if my back of the envelope numbers are off they are damn close to cost and/or losing money on this flip.
Here’s where it gets interesting. This same house would go for about $4 mil in Venice without any yard and Pardee probably has a roster of potential clients that they can try to convince to come 45 minutes south to little ole El Segundo. And if you think I’m joking about it taking 45 minutes to travel 9 miles then you haven’t driven on Lincoln at 6PM.
But maybe there’s an actual employee at SnapChat that is over 40 years old, has kids and doesn’t want to step over needles on his way out the door. So they take a little drive to El Segundo and listen to the sweet sounds of LAX.
When I was first looking to buy I bought a decibel meter app and sat in front of a home we were really considering. I ran the meter and clocked the stopwatch. From an out of towner’s perspective the airplane noise is incessant. Yeah you get (a little) used to it, but when spending top dollar and making this kind of life decision maybe hearing a plane every 90 seconds is a deal breaker.
But at $616/sqft this is starting to look interesting.
I’m sure the local cabal of agents have done their best to lay out the welcome mat for our visiting Venice agents! Odd’s are Gina brings a buyer to the table and gets paid anyway!