Buy 332 Ocean View Avenue
ASKING PRICE $1,579,000
4 BED · 3.5 BATH · 2,200 SQF
There’s a lot to like about this home including a nice floor plan, large rooms, a huge roof-top deck and a large great room with balcony and cool outdoor fireplace. On the other hand the location is less than desirable as it set just a few homes off of Pacific Coast Highway in Hermosa Beach.
Property was purchased as land value in March of 2013 for $841,000. We estimate building costs to be in the range of $1,000,000 for the two unit project, which pencils out to be ~$227 per square foot. Total hard costs were in the range of $1,841,000, plus padding of 10% (loan fees etc) equals a safe guess of $2,022,400. For this comparison, we can assume that each unit will sell for $1,500,000, bringing the builder approximately $500,000 of profit per unit. $1,000,000 for a year’s work—it’s time to be a developer, don’t you think? And, the developer here is a prolific builder, which means our cost assumptions are probably on the high side.