Our prior post focused on some "ripening" new construction in WeHo West, which is seeing modest price cuts after several months on the market. Today we head east to look at a similar situation, with a building listing units around the same time (May 2009) as the prior example.
Really, there are similar situations throughout Weho, these are just some of the most glaring examples.
925 N. Genesee Ave.
Listed: May 2009
# Units in Building: 4
# Units Sold: 0
Unit Types: 2BR / 2.5BA condos
Unit Sizes: 1900 - 2300 sq ft
Original List Prices: $1,269,000 - $1,299,000
Price Reductions?: Yes, $150-250k/unit
They've gone all-out with the descriptions on these. Each unit has its own name:
#1 - "The Splendid Architectural." A vision of open spaces & hi ceilings w/ intimate levels of purist design, comfort & warmth. The residence features floor-ceiling windows, a front porch w/ street access, glass encased balconies, a wd burning fp, grand closets, wine cooler & remote monitoring for ultimate safety. This exciting architectural is a blank canvas for the passionate at heart. Wired for surround snd, HD TV & satellite. Custom Bauformat Kuchen kitchen & Bosch SS Appl's. Open Sa/Su 1-4pm.
#2 - "The Ultimate Home." Space, space & more space. This magnificent residence provides the ultimate comfort in modern architecture. Formal dining/den, a lrg mezzanine & a lrg priv back yard w/ 40'yard for pet lovers & outdoor enthusiasts. This residence features a large master bedroom with breakfast area and walk-in closets. Safety, large spaces and great outdoors make this residence a great home. Custom German designed Bauformat Kuchen kitchens, Bosch appliances and much more! Open Sa/Su 1-4pm.
#3 - "The Holly Views." The entertainer's dream. A master design in luxury & comfort. Featuring an outdoor gazebo/deck w/ wd flring & breath taking vw of LA - the Hwood sign & downtown to the west side. This dream residence has a 40' balcony facing the Hwood sign above lush green Maple trees. Wired for sound, HD television & satellite is the entertainer~s paradise. Walk from your mstr bdr to the gazebo, be inspired by the magnificent vws. Bosch SS appl's, custom German design kitchen. Open Sa/Su 1-4pm.
#4 - "The Light House." Atop all buildings, this lrg residence is the perfect window to the great CA Sunset. Facing west, this elegant residence feats a lrg wd deck w/ a 270 degree vw of the city. Formal DR, glass stairs & a state of the art German Bauformat Kuchen kitchen complement this spacious residence w/ warm sunlight & amazing vws. A lrg master w/ bfast area overlooking the Hollywood Hills is one of the many features that makes this residence a place for relaxation & inspiration. Open Sa/Su 1-4.
Similar analysis as to the last property we reviewed. The price per square foot is "reasonable" at first glance (high $400s to low $600s), but these are outsized spaces.
That said, the finishings do appear to be very nice, and each unit seems to be designed to be light & bright, which can be a huge attraction vs. many of the tightly laid out, dark condos out there.
However, even with the price reductions off original list (by the way, two of the units' most recent reductions were this weekend, in the amounts of $50-100k; the other two haven't reduced since September), it probably won't be enough to find buyers. Sellers are going to have to realize that the "magic" price point of $1mm equating to "affordable" for a small SFR or large condo (aka glorified apartment) is a thing of the past. Even with rates low, the monthly nut here is huge.
On a related topic, I just had a conversation with a friend about some of our acquaintances who "make a lot of money" but are essentially living paycheck to paycheck.
I'll keep sounding like a broken record here: yes, there are people in LA (as with any city) making a lot of money. Many of them even save some of it, although I think you'll find that most (broad-generalization-with-many-grains-of-truth alert) don't. In times where 0-5% down got you into a place, having no savings mattered little. Now? Properties like this require some real scratch - $200k+ - at the outset. No doubt that severely limits the number of buyers.