The signs of Spring came early this year and it may look to you like there are real estate “For Sale” signs on almost every street in 90402! However, many of these signs turn out to rental offerings. In fact, right now in the North of Montana Ave neighborhood there are 34 single family homes available to rent and an additional 38 homes on the market for sale. You might call it a glut of rental properties. Some of these rental homes provide a wonderful income stream for the owners and others are being offered for rent so as to satisfy the IRS requirement for what is called a 1031 tax deferred exchange. This technique is used to defer the capital gains tax that is due upon the sale of a home. For people that wish to sell their home after living in it for 10-20 years, or more, the capital gains tax can be significant. In fact, that tax causes most older couples to stay put. They either can’t afford, or can’t bear, to pay the tax. By converting their home to a rental property for a period of time, then selling and buying another rental property, perhaps one in better condition – with professional management, Sellers can defer the tax owed so long as the exchange property is like-for-like and is purchased for no less than what they sold the old home for. I am not licensed to give tax advice so be forewarned, this is a sophisticated tax strategy and you should seek guidance from a licensed tax professional, but based on the number of rental homes in the 90402, it appears many people are deferring capital gains taxes.
Here is a recap of our market and the surrounding areas- Partners Trust 2016 Q1 Report.
Active Listings from March 31st to May 5th
370 20th Street – 5 bedrooms and 5 bathrooms. $5,995,000. Renovated in 2016. Great indoor and outdoor flow. Huge living room opens to front patio and formal dining. Chef’s kitchen with top-of-the-line appliances, breakfast booth, family room with fireplace, plus guest/office. Master suite with fireplace, bonus room and luxurious master bath with his/her vanities, freestanding bath tub. Private lush yard with tiled patio, room for a pool, 3-car garage. Last sold in November 2013 for $3,420,000.
609 10th Street – 5 bedrooms and 5 bathrooms. $5,100,000. There are many unique architectural elements in this contemporary Mediterranean. Lots of natural light. Great flow in the public rooms; great for entertaining. Features high ceilings, dramatic staircase. Professionally landscaped front and back. Backyard with pool, spa, waterfall and built-in barbeque. Last sold in March 1987 for $405,000.
718 10th Street – 6 bedrooms and 6 bathrooms. $3,195,000. Bring your interior designer, architect, developers! Around 7,500 square feet lot with permits to a 6,700+ square feet 2-story home with full basement, wine room, gym, formal dining, office/study, master suite with balcony and more. Last sold in October 2015 for $2,600,000.
333 22nd Street – 5 bedrooms and 5 bathrooms. $5,499,000. Relisted after being leased short term. Charming villa with modern updates. Beautiful and elegant. Features high ceilings, archways, skylights, recessed lighting. Spacious step down living room, sun drenched family room, gourmet kitchen with Viking appliances, Caesar stone counters, large center island. Great layout with 3 bedrooms (including master) up and 1 bedroom in lower level with large media/game room that could be a 5thbedroom. Private backyard with built-in BBQ, outdoor Cabana, Jacuzzi. Last sold in July 2011 for $3,350,000.
2121 La Mesa Drive – 5 bedrooms and 7 bathrooms. $17,800,000. Relisted at a much lower price from $23,000,000 last February 2015. Designed by renowned architect Peter Choate. Beautiful Architectural with stunning views of the Riviera Golf Course on prestigious La Mesa Drive. Property consists of an east and west wing. The east wing boasts a master retreat with a sky lit walk-in closet and spa, two bedrooms, in-home theater. The west wing features ample sized bedrooms that are bright and light. There’s a customized chef’s kitchen and outdoor patio. Last sold in April 2013 for $11,225,000.
301 20th Street – 5 bedrooms and 5 bathrooms. $5,200,000. 2-story Mediterranean on the corner of 20th and Georgina in Gillette’s Regent Square. Beautiful home with center all with lots of natural light. Beautiful large patios surround a 40 foot pool. Kitchen with Wolf range, double ovens, 2 refrigerators, 2 dishwashers. Last sold in March 1973 for $108,500.
Escrows as of May 5th
816 San Vicente – 4 bedrooms + 3 baths. $3,395,000. 1920s Spanish gem, more than 3,500 square feet. Lots of charm of the bygone era: arched doorways, vaulted ceilings, masonry fireplaces, circular stairway, etc. Spacious master suite with Waterworks bath, gourmet kitchen with Viking range, Subzero fridge, granite countertops, salt-water pool, spa, cozy patio, beautiful garden. Last sold in April 1997 for $751,000.
464 18th Street – 5 bedrooms and 3 bathrooms. $3,600,000. 1929 Spanish Colonial on an 8,900+ square feet lot. Great location in prime Gillette’s Regent Square and Franklin School District. Trust sale and sold as-is. Bring your developer, architect/ builder for this wonderful investment opportunity. Last sold in March 1968.
708 17th Street – 2 bedrooms and 4 bathrooms. $3,495,000. 1930’s Mediterranean extensively remodeled. Features designer custom window treatments, wide board oak floors, open floor plan, resort-like gardens. Formal living room with vaulted beamed ceiling, fabulous cook’s kitchen with adjacent family room opens to a trellis covered patio. Beautiful master with metal doors open to garden, vaulted ceilings, gorgeous bath with heated floors. Detached studio with bath. Last sold in August 2014 for $2,575,000.
219 23rd Street 5 bedroom, 6 bathroom. $6,450,000. A John Andrews designed home. Beautiful newly constructed and just completed, bright and sunny traditional style with wide plank oak light floors, high ceilings and large retractable skylight, elegant master suite with luxurious master bath, basement with screening room, en-suite guest bedrooms. Grassy backyard and covered patio. Elevated lot. Franklin school district. Last sold in March 2013 for $2,450,000 as a tear-down.
523 9th Street – 5 bedrooms and 5 bathrooms. $4,425,000. Relist from October 2015 with original list price of $4,675,000. Desirable tree lined street in Santa Monica. Charming Mediterranean behind lush landscaping. High ceilings, pale wood floors, skylights. Formal living room, large dining room and private study with a large open kitchen., family room opens to lovely backyard and patio. Over 5,000 square feet of living space. Expansive master suite with private balcony, 3 bedrooms upstairs and one bedroom and bath downstairs. Last sold in July 1989 for $1,520,000.
428 18th Street – 3 bedrooms and 2 bathrooms. $3,099,000. Property sold AS IS. Lot value only. Great opportunity to completely remodel or build dream home in Gillette’s Regent Square. Last sold in December 1989.
Closed Sales from March 31st to May 5th
2012 La Mesa Drive – 6 bedrooms and 6 bathrooms. $10,700,000
528 14th Street – 5 bedrooms and 6 bathrooms. $3,930,000. Sold by PHS.
926 San Vicente – 4 bedrooms and 3 bathrooms. $2,605,000
507 11th Street – 4 bedrooms and 3 bathrooms. $3,500,000.
710 19th Street – 3 bedrooms and 2 bathrooms. $3,450,000. Sold by PHS.
738 22nd Street –3 bedrooms and 3 bathrooms. $3,600,000.
339 17th Street – 4 bedrooms and 4 bathrooms. $3,230,000.
Call me for a couple of upcoming attractions that are not yet listed in the MLS, priced from $1.9 million to $8 million. And….here are a few that we have listed in the MLS:
421 23rd Street – 5 bedrooms and 6 baths $6,495,000
802 San Vicente Boulevard – 3 bedrooms and 2 baths $3,288,000
1023 S. Bundy Drive – 2 bedrooms and 2.5 baths $2,495,000
1535 Granville Avenue #203 – 1 bedrooms and 1 baths $469,000