Densification alert - Update - Part 2

So.... interesting development in relation to the Via Garfias property.  Turns out the buyer doesn't want to proceed with developing on both of the lots (See this earlier post).  Instead, they've listed the small 6,300sf lot for sale for $850K.  Just for the land.  Keep in mind that the seller bought BOTH lots (two lots totaling 12,000sf) for $1,040K.  So they're thinking they can sell just empty land, a small parcel at that, for $850K. If they were successful (which I highly doubt they will be at that price), their cost of the land they are developing will only be $240K - a steal in PVE (or any of the Peninsula/Beach Cities really).  Problem is I don't think that lot is worth anywhere near $850K.  At best, that very small lot is worth $600-650K.  If they're able to get that, then their own lot cost will be $440K - still a good deal, but not a total 'steal.'

Check out the listing here: http://www.redfin.com/CA/Palos-Verdes-Estates/1609-Via-Garfias-90274/home/7724512