Westside Income 2nd Quarter 2010: Santa Monica, Palms, Mar Vista Rack Up Modest Sales of Buildings Under 10 Units

Westside income property sales during the 2nd Quarter 2010 were anemic, with only an odd smattering of buildings selling, all under 10 units, and with a top selling price of $1,770,000. This diverges from the 1st Quarter 2010, when three buildings sold for around or above $3 million in Santa Monica.

What is the explanation for this lackluster sales environment? Perhaps it can be explained by the lackluster economy. Or, fears aroused by the downwardly cascading Dow, which lost about 1,200 point during the 2nd Quarter. Or fears about unemployment, which showed no signs of declining. Or fears about the widening trade deficit, decline in residential sales, or ... you fill in the blank. Or maybe it was the product being offered, that failed to inspire investors.

Whatever the cause, the Quarter was characterized by modest trades. All the buildings we analyzed in Santa Monica had six units and sold between 11.2 and 13.1 GRM. This compares to 11.7 - 14.2 GRM during the 1st Quarter 2010. Although the GRM appears to be declining, because of the diverse range of building type and neighborhood, we fail to draw any conclusion about prices dropping.

In Palms-Mar Vista, sales during the 2nd Quarter 2010 ranged between 6 and 9 units, with GRMs between 10.7 to 12.0.

2228 West 20th Street in Santa Monica, with 6 units and 7,539 sq ft of living area sold for $1,770,000 and a 13.1 GRM.

953 21st Street in Santa Monica, with 6 units and 6,249 sq ft sold for $1,700,000 and a 13.2 GRM.

1527 Princeton Street in Santa Monica, with 6 units and 5,864 sq ft sold for $1,665,000 and an 11.2 GRM.

1533 Yale Street in Santa Monica, with 6 units and 4,537 sq ft, sold for $1,246,000 and 11.7 GRM.

3600 Empire Drive in Palms-Mar Vista, with 6 units and 6,657 sq ft, sold for $1,550,000 and a 12.0 GRM. This is a non-rent controlled building.

12731 Mitchell Avenue in Palms-Mar Vista, with 9 units and 7,588 sq ft, sold for $1,475,000 and an 11.6 GRM.

3720 Westwood Boulevard in Palms-Mar Vista, with 7 units and 6,453 sq ft, sold for $1,201,000 and 10.3 GRM.

3737 Vinton Boulevard in Palms-Mar Vista, with 8 units and 6,347 sq ft, sold for $1,151,000 and a 10.7 GRM.

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