Major Price Reductions for New Condo Developments

A number of newer condo developments in the West Hollywood area have been languishing on the market, unsold. Three buildings in particular are worth noting:

901 Hancock Ave (The Hancock Lofts) - Designed by architects Koning Eizenberg and developed by the CIM Group, this mixed-use development at the corner of Hancock Ave and Santa Monica Blvd includes 31 residential condos offering a choice of one and two bedroom loft-type condos and 2-story town-homes. Floor plans range from 1,000 to 1,800 square feet. These units came to the market in the second quarter of 2009 at around $900 square feet. Prices ranged from the mid $800,000's for a one-bed unit to over $1.3 million for a 1500 square feet two-bed unit. At these prices the units didn't sell.

In March 2010 an extensive advertising campaign was launched promoting an auction of 14 of the units at The Hancock Lofts. One-beds were priced from $395,000 and 2-beds were priced from $595,000. Unfortunately there were undisclosed reserve prices which were far higher than the advertised auction prices. The result was a disappointing auction. Based on MLS records it appears that one unit finally sold for $875,000 (working out t0 $552 square feet) - almost 40 percent below the original rate per sq ft. In May 2010 the units were again re-priced and are currently for sale at around $650 square feet.

1200 N Sweetzer Ave - In July 2009 developer Urban Moment released the 10 units at 1200 Sweetzer to the market at between $700 - $830 square feet, pricing the units from $799,000 for a one-bed condo to $1,449,000 for a two-bed loft. Five months later prices were reduced, but this reduction still failed to attract buyers. Several price reductions later, the listing expired and the project was re-listed by another Brokerage.  An 1141 square feet one-bed is currently listed for $699,000 ($612 square feet); a 1378 square feet two-bed is listed at $899,000 ($652 square feet); and an 1863 sq ft three-bed is listed for $1,225,000 ($636 square feet). Some of the unit's prices have been chopped to around 50% of the original prices. To date no units have sold in this building but it appears that three units are pending (in escrow).

855 N Croft Ave - In March 2010, these 33 units - designed by SPF Architects - were listed at prices ranging from $745,000 - $1,495,000. Condos ranged from 1455 - 2125 square feet, working out to between $500 - $700 square feet. Surprisingly, a month later (with no sales being recorded), two of the penthouse units had price increases, one from $731 square feet to $770 square feet and the other from $704 - $759 square feet.  About four months later with no recorded sales, the listing was canceled and the development was re-listed at reduced prices. The new Brokers have only listed one unit on the MLS at $645,000 for a two-bed rear-facing unit that measure 1469 square feet, making it more competitively priced at $439 square feet. At the time of writing this article (and based on information reflected by the MLS), no units are currently in escrow and there are no recorded sales as yet.

901 Hancock Ave is currently listed by Richard Winchell of Kennedy Wilson International; 1200 Sweetzer Ave is currently listed by Tracey Broadman of Westside Estate Agency; and 855 N Croft ave is currently listed by Garrett Frakes of The Polaris Group, Inc.