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Santa Monica Rent Control’s Dirty Little Secret

Posted by John Hathorn on August 8, 2014
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A study by the University of Southern California’s Lusk Center for Real Estate ranked Santa Monica with the highest average rental prices in Southern California. This should not come as a surprise as Santa Monica is one of the most desirable places in all the United States to live.  What is surprising and sort of ironic is that Santa Monica has one of the country’s most strict rent control charters.  Many of the residents of some of the most affordable rental units are very capable of paying fair market value but will never have to do so.  North of Montana Santa Monica 311 11th St

For example, there was a beautiful old Spanish style, five unit building for sale on 14th St. near Montana Avenue a couple of years ago. A client of mine wanted to buy it. We submitted a full price offer on his behalf but lost the building to a tenant living in the building! The tenant had been paying $840 a month for a cute little 2 bedroom. He had been living there for 15 years and managed to save enough money to pay all cash for the building which sold for nearly $2 million.

In the last year alone every multi-unit property I’ve listed in Santa Monica sold with several offers and over asking. Just last week a portfolio of 7 buildings sold with 18 offers for more than $34 million – probably not to one of the tenants.

Looking to invest in an income property, call me.

Here is your real-time real estate market info:

There are 13 properties available to buy in zip 90402.  One north of Montana listing- 311 11th St- hit the market in the past week. There are 11 listings in escrow. There were 4 closings this week: 403 22nd St, 615 18th St (listed and sold by Pence Hathorn Silver), 536 Alta Ave and 708 17th St, bumping the number of closed sales year-to-date to 38.

New Listings this Week

311 11th St. –   5bd + 7ba.  $4,099,000.   Elegant 3-story Mediterranean north of Montana Ave. Features dramatic entry, kitchen w/top-of-the-line appliances, en suite bedrooms, romantic master w/his & hers baths, steam shower, spa tub, etc. Last sold in December 2010 for $3,800,000.

New Sales this Week

241 19th St. –   5bd + 6ba.  $4,995,000Listed by Pence Hathorn Silver. Gorgeous Country English significantly remodeled recently. Huge subterranean level with exquisite craftsmanship and quality details. Sophisticated backyard w/saline pool & spa, and more. Last sold in March 2011 for $4,031,000.

444 21st St. –   2bd + 2ba.  $2,995,000.   AAA+ prime location and a Gillette’s Regent Square lot of over 8,900 sq ft. Exquisitely remodeled last year. Detached garage is being used as an office. Last sold in June 2012 for $2,125,000, just before the market for land value properties began skyrocketing.

New Closed Deals this Week

403 22nd St. –   5bd + 8ba.  $6,860,000.

615 18th St. –   7bd + 8ba.  $6,400,350.  Listed and sold by Pence Hathorn Silver.

536 Alta Ave. –   5bd + 4ba.  $4,500,000.

708 17th St.–   4bd + 3ba.  $2,575,000.

Pence Hathorn Silver Active Properties:

502 16th St. – 5bd + 7.5ba – $8,495,000

1432 Bienveneda Ave. – 7bd + 8ba – $5,295,000

721 23rd St. – 5bd + 5.5ba – $4,495,000

143 Foxtail Dr. – 4bd + 3.5ba – $3,095,000

12727 Sunset Blvd. – 4bd + 4.5ba – $2,345,000

370 N. Kenter Ave – 3bd + 2.5ba – $2,195,000

1411 Charmel Ct. – 4bd + 2.5ba – $1,750,000

3819 Seahorn Dr. – 4bd + 2.75ba – $1,695,000

416 Entrada Dr. – 3bd + 1.75ba – $1,450,000

2402 11th St. – Duplex, 2bd + 1ba – $1,258,000

Search for more homes, see real time analytics and learn about the North Santa Monica / North of Montana  Ave. community on our North of Montana blog.  Add your comments (scroll down to the “Add Your Comment” section) and read other blogs. And please call my mobile phone (310) 924-4014 with any questions.

 

 

 

 

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