Buy 533 11th Street
Asking PRICE $1,749,000
3 BED · 3 BATH · 2,200 SQF
This new construction town home, the front unit of a three on a lot development, is bright, airy, and high quality. The 6-inch plank wood floors are throughout the home and creates a nice flow from room to room to the rooftop deck. While it is a contemporary home, it is warm and inviting. The Kitchen opens up to a Great Room and Dining Room so the chef will not miss any socializing. The grayish limestone-topped island is a beautiful contrast to the white quartz countertop and slick, white cabinets with a view of the linear fireplace. The Master bedroom is large with great sliding doors to let the breeze in. The en-suite bathroom is also impressive with a dual sinks, separate shower, and a modern, footed bath. The stairs to the rooftop deck is surrounded by reclaimed wood, matching the exterior, with a window to create interest. Around the corner is the beautiful rooftop deck; this space is worth some serious entertaining. The two additional bedrooms are rather small, but the right sized beds will create the illusion of space. This townhouse is located in prime Hermosa Beach territory, with an easy walk to downtown for shopping, the beach, or Civic Center. This indoor/outdoor townhome reflects a true beach atmosphere and lifestyle.
Property was purchased as land value in December of 2012 for $1,030,000. We estimate building costs to be in the range of $1,500,000 for the three unit project, which pencils out to be ~$225 per square foot. Total hard costs were in the range of $2,530,000, plus padding of 10% (loan fees etc) equals a safe guess of $2,750,000. For this comparison, we can assume that each unit will sell in the $1,700,000 range, delivering the developer a total sale revenue of $5,100,000.
Lets do the simple math: $5,100,000(sales revenue) - $255,000 (real estate fees) - $2,750,000 (hard costs) = $2,095,000 of profit, not bad for a year’s work.