West Hollywood Vicinity (Area 10): In the final three months of 2008 only three income properties sold in West Hollywood. Two of the sales occurred in a brisk six days or fewer. The fastest-selling was 1001 N La Jolla Avenue, a fully-rehabbed Rudolf Schindler two-unit property with an owner's main house (pictured above). It sold in two days, for $1,330,000, close to the asking price. Another duplex, 718 N La Jolla Avenue, 1,426 sq ft, with side-by-side units, sold in 6 days for the asking price of $699,000. The third 4th quarter sale was a three-unit property at 1015 N Orange Grove Avenue -- barely over 1,000 sq ft, on a large 7,549 sq ft lot -- which sold in 200 days for $900,000 (original asking price $1,349,000).The two quick sales demonstrate how even in this down-market, a pedigreed, trophy property and a well-priced, well-located, owner-user type duplex are still much sought after. The N Orange Grove Avenue sale shows how buyers are not taking the bait for over-priced properties -- only when the price settles down to earth, to market value, will they "bite".
What is also relevant is what did not sell during the 4th quarter of 2008: 21 West Hollywood listings expired in the final three months of the year. During the heated market of the previous several years, property valuations got pushed up to stratospheric heights and list prices became completely divorced from cap rates and the actual earning power of buildings. This is a time of reckoning, and all the over-priced, over-valued properties will stagnate on the market unless the sellers demonstrate they mean business and price their properties with today's valuations, not yesterday's, in mind.
Jamie Adner
www.adnergroup.com
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