About a month ago I wrote a post on the return of the housing development at 360 South Bay. The project was scheduled to open sometime this month but it may take them a bit longer with all the rain we have been having in the last few weeks.
In my last post I speculated about the possible pricing of these units. I believe one of the reasons the project had such a tough time last time around was that the units were priced too high for the location. A reader was kind enough to send me some information posted by the company in November about the prices the company was projecting upon the re-opening of the project.
There are 3 phases to the project. If all goes well the development will take about 3 years from re-opening to completion. The Flats and the Courts will be offered for sale this year. The Lofts and The Rows in 2011 and the Gardens in 2012. The prices above may not be the asking prices on the units when the project officially re-opens, but these are the prices the company was posting in November on the company financial information .
The prices for the Flats and The Courts appear to be fairly close to the prices the last time around in 2007-2008 and we know they didn't generate the interest that William Lyon Homes had hoped to see. You can't help but wonder what they are thinking... $495,000 for a studio condominium in Hawthorne by the 405 Freeway in today's market seems rather pricey...especially when you can buy a 2 bedroom 2 bath unit at Fusion for less.
I'm hoping the above prices are higher then the actual asking prices will be when the project officially re-opens. I would like to see the project succeed as we don't have much in the way of newer affordable housing in our area. However at roughly $500,000-$790,000 for the first phase these units may not be affordable for most of the folks who would like to live there. $790,000 will buy a nice rear unit townhome in North Redondo....
The three rules of real estate are location, location, location... it will be interesting to see if folks are willing to pay these prices for new in this location.