Recently, two ocean-view Manhattan Beach Hill section lots traded off-market for $6.2 million each which, from our research, appears to set a new high water mark for dirt in the Hill section, although that record may soon be broken by a property currently in escrow.
One lot - 1007 Pacific Avenue - measures 63' x 140' and occupies 9,379 sf at the northwest corner of 10th and Pacific, with the longer side running down 10th Street as it slopes toward the ocean.
Back in 2014-15, this lot was marketed at the nose bleed price of $6.6 million but was eventually reduced to $5,990,000 with no takers. Now, as of April 19 of this year, the lot has a new owner, the head coach of the men's basketball team at USC. It is a virtual certainty that he will be tearing down the extremely dated 4,200 sf home in order to build his family's personal residence and maximize those killer views.
The second lot to hit that $6.2 million figure is 823 6th Street, which consists of a 1,510 sf teardown on a 9,980 sf lot. This home first traded for $3.5 million back in 2005, then $5.9 million when an LLC bought it in 2016 (usually a sign of a future spec project). However, the LLC turned around and transferred title to a private party for $6.2 million in February of this year.
Last year, we saw 512 Pacific Avenue, a huge (over a quarter of an acre) 11,407 sf lot trade for the second time in 18 months. The first time it hit the market in 2016 as a 3-bedroom teardown, it sold for $5.5 million. When the buyer changed his mind after clearing the lot, he resold it last year for $6.1 million, including plans for an 8,000 sf 'soft' contemporary home (see rendering below).
All of these sales may soon be upstaged if 100 N Dianthus, currently in escrow, closes at the rumored sale price of $6.4 million.
This property, pictured below, actually comes with an extremely substantial 6-bedroom, 7060 sf home. However, the home is dated (built in 1982) and has a somewhat dysfunctional floor plan that doesn't do justice to the large (9,370 sf) ocean-view corner lot so the $6 million list price ended up attracting a number of bids from developers and end users looking to tie up the land in order to bulldoze the existing home and build a new one.
Things certainly have changed in our local market when a 7,060 sf home can be viewed as a teardown. Makes one think of Beverly Hills and Bel Air, where this sort of oversized teardown is more common.
Update: 100 N Dianthus did in fact end up selling for a record price for Hill section dirt - $6,362,400. Again, we are calling this a lot sale (despite the imposing house currently presiding over this ocean-view corner lot) as it is our understanding the buyer will be tearing this home down.