Westwood Meltdowns
1440 Veteran #336, 90024
2+1, 834 sqft, Sold for $410K on 6/5/08, $491/sqft
1440 Veteran #359, 90024
2+1, 840 sqft, Sold for $469K on 6/4/08, $558/sqft
Almost identical unit, Same floor, sold for $59,000 less, just 1 day later.
Thursday, January 1, 2009
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13 comments:
Note that the "2+1" is actually 1 bedroom + loft. Some loft areas in the building have been converted to 2nd bedrooms or storage areas. This building was built in 1973 and has 5 or 6 floors, depending on the side of the building.
6 years ago, a similar units on the 5th floor were selling in the $235K - $300K range.
I'm mostly keeping an eye on the 3+2 'shacks' on postage stamp lots (5-6k/sf) in Westwood. So far they seem to be holding steady with recent sales just under 1 mil. I'd certainly like to see these get down in the 800 range, but as I speculated in my comment for the 12/13 post, it seems there will be a *lot* of interest by a great number of people waiting on the sidelines at that price point. Which makes me believe bidding wars may ensue and prices will really stay in the 900s. I'd love to hear thoughts on my relatively uninformed speculation :)
-Dave
Dave,
I have a similar interest in 90024. Your speculation might be correct... except for the economy and employment situation. I wouldn't be surprised to see some smaller houses in Westwood selling (not foreclosures)in the $500K - $700K range in a couple of years. At the start of the bubble, there were some small home south of Wilshire in that range.
-Frank
Based on Anon 7:07, it looks like we have a ways to go. 2002 prices for these units, are not that far off. And, these are both located on lower floors.
I live in that building and you do not want to live on the lower floors. Even though the condo developers did a fantastic job (back in 1985-86) to soundproof the units, the water pipes are pretty noisy and old. The best units are on the top floor - 5th or 6th, depending on which part of the building. The rest are just grossly overpriced econoboxes. The building does have excellent amenities (24 hour guards, package holding, pool, gym, etc.) but it is old (1973 construction) lacks central air or heat and the utilities are combined, so the HOA fees are higher than most.
All together, I don't think there's a unit worth more than $350K in 2002 prices.
Frank
Frank, Thanks for the insight. You sound like our resident expert, in this building. From your evaluation, it sounds like we have at least another 30-40% off to go.
What's interesting is that two apartment buildings next to 1440 Veteran were sold almost two years ago. One is a house + attached apartments, the other is an older apartment building.
The owner of 10966 Wilkins Ave and 1407 Kelton (the apartment building) was a very nice old man, and he'd lived in Westwood for many decades. After he died, his family sold both lots in Feb. 2007.
According to Zillow, 1407 Kelton sold for 2.55M, now worth 1.57M.
10966 Kelton sold for 2.25M, now worth 1.48M.
What's sad is that both places are empty and have been for well over a year. No residents at all, except for a caretaker (or squatter, depending on the neighbor you talk to) and raccoons. The people who bought it were going to turn the lots into luxury condominiums.
Good luck with that!
A little further north on Kelton, another apartment complex was going to be torn down and turned into luxury condos but the developer (smartly, IMO) decided to clean up the units and re-rent them.
Frank
There seems to be a few lots like those, that are now sitting vacant. New condos don't pencil out anymore and it is difficult to get a loan to build. My guess is, they will stay vacant for some time.
The Zestimates on Zillow are helpful to give you a range, but not always accurate.
It sounds like Westwood has begun its decline.
Hi,
anyone have any feedback on 1887 greenfield?
1887 Greenfield looks like the typical condo in the area - built in the early 1970s. The units are large, but so are the prices.
Wait until the area corrects and the price for the average unit drops to historical, reasonable norms - the $200K-$300K range.
My wife and I saw a house nearby - labeled as "the lowest priced house in Westwood" and the asking price was $1.175M. It last sold in '97 for $447K, which was a little high even for that era. I think prices in Westwood will correct towards those lower prices in a couple of years.
Frank
Yes, it's true, there are no 2 bedrooms there, only converts to 1 bd. + loft.
I used to live at 1440 Veteran. Bought a 1 bedroom condo in 1986 or '87, in the first or second phase after they were converted, for 119,500. Sold it early 2000 for 130,000, and was happy to get out. I was then pretty amazed to see the increase in value within 6 months of having sold. And now, checking back for the first time in a long time, I'm truly gobsmacked at the prices for those 2 sales indicated in the post. It's true the amenities are nice, but as mentioned above, the units are essentially overpriced boxes. I have to believe there is going to be a significant correction in those values which, along with everything else, got completely out of whack.
Also, for what it's worth, my unit was on the second floor, Ohio side of the bldg., and, despite decent soundproofing, was still subject to regular and rush hour/cut through traffic noise/din, and at least one accident every other day at the corner of Ohio and Kelton, until they finally adjusted the signage in the late 90s.
Things haven't changed much @ 1440. I bought at about the same time as you did, for a little more (I was on the 4th floor, overlooking the pool) and went through a period where units like mine was going for less than what I still owed on my mortgage.
I sold my place in 2002 at what I thought was an obscene profit at the time, and rented a nice 1 + loft on the 5th floor (it is a nice place to live). I've been amazed to see the prices on the typical 1440 Veteran 1 bedroom "boxes" hit $380K, with 1+ loft units reaching almost $500K.
Even singles (basically, hotel room sized- no bedroom) on the 2nd floor with a view of the neighbor's dumpsters go from $100K back in the 1990s to $320K a few years ago.
I like using this place (1440 Veteran) as a perfect example of the madness that was (and still is ) the Westside RE bubble.
Frank
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