PROJECT AND SITE DESCRIPTION | Located in a highly desirable area of Mar Vista, this three bedroom one bathroom home was purchased in severely neglected condition as an off-market opportunity. The appeal of this property is its location in Mar vista where buyers priced out of Marina Del Ray and Venice, who want to live near the ocean, could find something more affordable. The specific neighborhood is in transition as young professionals are quickly acquiring homes in the area, making it one of the hottest neighborhoods in the West LA marketplace.
STRATEGY | We obtained 97% debt financing from a private investor for the entire project. The goal was to build a stylish home appealing to young couples looking for a place to entertain their guests and start a family. The final home alludes to the beach/surf cottages that proliferated in the area during the 1950’s but with a open floor plan and modern lines that current buyers desire. The original home consisted of 1,107 SF across 3 bedrooms and 1 bathroom. Without adding a costly second floor it was determined that the max SF that could be added was 563 resulting in a final home size of 1,670 SF. The majority of the added SF was used to create a master suite with an expansive private bathroom and enormous walk-in closets. The floor plan was modernized to an open plan while the ceiling was raised to 9 feet creating flow between spaces while giving an open and light overall feeling.
RESULTS | In it’s first weekend on the market the overwhleming response from buyers resulted in multiple offers. The home was in escrow within three days of being listed. The final sales price of $1.45 MM was 14% higher than our projection $1.25 MM resulting in annualized returns of over 400% and profit of almost $400,000. The sale marked the highest purchase price for a sold home of comparable square footage within the previous 6 months. At $868/SF, the home sold for 26% higher than the average price per SF of $650 in the area.