Style matters.

Today, we learn a quick lesson: style matters.  Size doesn't.  And what better example of that than our famed Lunada Bay McMansion (See this post).  Remember this home, which I wrote extensively about, was listed initially for $3.8M>  It was then reduced to $2.9M, then de-listed, then relisted at $3.3M, then reduced to $3.0M, then reduced again to $2.949, and yesterday, reduced again to $2.799M.

(Source: MLS)


If we do some quick math, assuming this property sells for asking, after the 6% realtor fees, Mulligan and Co. will net $2.63M.  Recall from my previous entries that Mulligan bought the vacant lot for $1.5M in September 2010.  Netting out the land cost, this leaves Mulligan with approximately $1.13M.  The house, which spans 5,576sf, cost in the neighborhood of $1.1-1.2M to build (based on average construction costs in the South Bay of $200/ft).  Thus, my guess is that the developer just wants to unload it as quickly as possible so he can free up capital for the house he's building right in front of it.  That house is below:

(Source: NJC)

So what is the lesson learned here? That style matters.  Building a massive tasteless home,where the siting of the house is off, makes absolutely no sense.  Had Mulligan focused more on the architecture of the home, the siting of the home and spent the incremental dollars to make the house feel more authentic and timeless, this home would have sold long ago at much more than the $500/sf it is currently listed at.  What never ceases to amaze me is how little importance developers place on architecture.  It matters guys. A lot. 

In an equally unsurprising update, Mulligan's other Lunada Bay listing on Chelsea Rd was recently taken off the market, site unsold.  Could have been leased, but more than likely it will re-debut again in a couple of weeks ahead of the summer.

A dose of reality

Remember that McMansion I wrote about earlier which was listed for $3.8M?  Well, it looks like Mulligan & Co. have reset its expectations on what something of questionable architectural quality can fetch in the current market.  The home, just off Paseo del Mar in Lunada Bay, has been re-listed with a much more reasonable asking price of $2.9M (listing can be found here) - a price chop of $800K or 20%!  If you recall from my prevous post, I had estimated that the profit margin on the house, given its size, land cost, and some fairly aggressive assumptions on construction costs, was between $200K-900K at the $3.8M price.    At the new price, its hard to envision a scenario where the developer would actually make a meaningful profit on this development.  Very interesting.  I can't help but wonder if they had spent more time (and money) working out the actual design and aesthetics of the home, if they would have been able to attract a higher value (and actual offers) for the property.  A lesson learned: design matters.

(Source: MLS)

Season for construction...

Today, two quick updates.

First, update on a new Spanish home going up on the Drive in Valmonte.  The homeowners purchased this tear down home in December 2010 for $839K.

(Source: Google Maps, MLS)


The homeowners then hired Doug Leach to design a Spanish home.  As of this weekend, here's the progress that's been made to date:

(Source: NJC)

As you can see from the photos, it's a fairly predictable facade, with two garage doors on the eastern side, a central tower, and a living room on the western side.  What is hard to tell from this photo is that the home is centered around a courtyard which is open to the west.  I'll try to get better photos next time.  Let's hope this home is finished in white with a nice, authentic red tile roof.


The other update is up in Lunada Bay, the sequel if you will, to the McMansiony home I wrote about it before (click here to read that post).  This home is a single level, home that sits on a very expansive lot.  I presume the home is only one story to preserve some of the view for the home behind it which is listed for sale at $3.8M.

(Source: NJC)

This home has the potential to turn out well - only time will tell.  I do not like how the front of the home sits right up on the street, with not so much as maybe a 15 foot setback.

Valley ...err Lunada Bay home hits the market!

Remember that bluff-adjacent "italian" home I blogged about here and here? Well, it finally hit the market (see photo below).  The home, which measures 5,297sf, sits on a bluff adjacent 15,700sf lot.  The lot itself was purchased for $1.5M the end of last year.  This mock-terreanean home is listed at $3.8M.  Some quick simple math - 5,297sf of living space plus 600sf of garage space is 5,897sf of gross space.  Assuming a range of $200 to $250/sf construction costs, that implies a total cost of $1.2 to $1.5M.  If we take out 5% realtors' commissions off the asking price, Mulligan and Co stand to make a tidy profit of between $600K to $900K.  Can't wait to see how (bad) the interiors look.  Stay tuned.

Updated! More pictures posted from MLS listing (see below).

The interior of the home is equally bland.  Its standard fare for spec builds in the area.  The ceilings look low for a new build - 8 or 9 feet, not the 10-feet you see in higher end builds.  The kitchen looks 'builder grade', ie whatever was on clearance at Home Depot.  The entryway looks poorly thought out and planned - a singular door that plops you right in front of the stairs - no double-height foyer, no particular architectural details, nothing.  This home is thoroughly uninspired.

KEY STATS

Location: Lunada PVE
Style: Italian
Year built:  2011
Architect: Jesus Meza
Square footage: 5,297sf
Lot size: 15,700sf (irregular)

Money may buy you many things, but taste isn't one of them

So today I just thought I'd do another quick post.  Remember that Lunada Bay Spanish home that's listed for sale for $2.8M designed by Doug Leach?  Well, its basically done and I'm not a fan!

Judging from the updated MLS pictures, it looks like Mulligan/Leach opted for some beige derivative for the exterior color instead of the more authentic white.  Also, as I suspected earlier, the front is too busy.  Too much going on.  The windows are too big, too ornate with lights on either side, a column separating the two panes.  Insufficient white space separating all the ornamentation on the facade.  Also, why oh why did Mulligan opt for a cheap plastic garage door that was painted brown?  Why not splurge the extra cash on an authentic wooden garage door?  If you're spending $1M on construction costs, what's an extra few $K? 

Can someone explain to me why there is a small wall separating the driveway and the entryway?  If you opt for parking your car in the driveway and want to enter the front door, why must you walk all the way around to the pedestrian path?

 (Source: MLS)

(Source: MLS)

I understand the lot is width-constrained.  This lot I believe is 67 feet wide, implying that the home itself is approximately 50 feet wide.  That is still plenty of space.  Especially considering that several other homes have managed to achieve creative, tasteful, and restrained designs even on 60' wide lots in which the facades are constrained to 43' wide.  Take for example this other home in the Valmonte neighborhood which is also listed for sale at $2.4M.

 (Source: MLS)

(Source: Google Maps)

That 3,683sf home built in 2001 sits on a comparatively small 7,886sf lot which is about 63' wide.  Yet despite these constraints, the home has loads of architectural features - all tastefully done.  It's not one big mass of a home with faux Spanish or faux Italian elements.  Its authentic.  Its well done indeed.

Even the siting and layout takes advantage of the natural features.

(Source: MLS)

I'm not sure who the architect was on this project.  The original homeowners, who have listed this home for sale, bought the lot with an older home on it in 1998 for $750K.  They tore that home down and built this beauty in 2001.

KEY STATS

Location: Valmonte PVE
Style: Cape Cod
Year built:  2001
Architect: Unknown
Square footage: 4,000sf
Lot size: 7,886sf (63'x130')

I have to say, that despite the atrocities of the Leach/Mulligan Spanish home, there are some truly beautiful homes in PVE.  Furthermore, for all my issues with the Art Jury being asleep at the wheel, they have at least prevented some absolute extremities of design from popping up in the city.  Unlike Beverly Hills.  Check out this home below, which is currently listed at $5.8M and spans 8,675sf.  The listing description heralds the house as a "one of a kind" home "with French and Italian style."  I think the photos say it all - no further commentary needed.

(Source: Google Maps)

(Source: MLS)

Are we in the Valley?

Quick updates today.  Remember that monstrocity in Lunada Bay that I wrote about (more here) ?  Well, my fears were confirmed when I checked out the progress being made.  Here's what the first of the two homes looks like as of last week.

 (Source: NJC)

(Source: NJC)

This is a cartoon of a home if I ever saw one.  It's a block.  Well, three blocks.  With windows.  Lots of them.  Close together.  Doors.  Lots of them.  Close together too.  And the three car garage!  The siting and massing of this house is atrocious!  And what's more, rather than even attempting to have any semblance of authenticity by say, painting the home white and using a deeper red tile, the home is yellow.  With orange tile.  I mean, if you're going to go with something that is overly simple, at least do it well.  This home is a McMansion.  The kind you normally find in the Valley or Riverside County.  It does not belong on a bluff top lot in PV.

If the owner/builders were going for the symmetric, stately yet informal, balanced facade look, they could have gone with this home below which was built last year in Beverly Hills.  While this home too is imperfect, it still is head and shoulders above the Paseo del Mar McMansion!

 (Source: NJC)

(Source: NJC)

This example is a simplified, somewhat symmetric and balanced facade. The BH home has the right color palette.  Better massing.  The design is restrained, graceful even.  Sufficient white space.  Etc.

What do you all think?



Also, one other quick update.  The other home I wrote about is nearly complete - and its a beauty!
You remember this one? Well here it is, all grown up!

(Source: NJC)

We need more homes likes this!  Unique, authentic designs.

Construction update - More news in Lunada

A quick one today - an update in Lunada Bay. New parcels of land on Paseo del Mar that were previously vacant saw their first home go up (or close to it).  The closest one to the bluff, which measures about 0.5 acres, sold for $1.7M in mid 2010 after being listed at $2.35M for some time.  The smaller lot, about 0.35 acres, sold shortly thereafter for $1.5M.  Both were bought by Mulligan Development.    You can see the evolution below, from flagging to construction.  Looks like the smaller lot, farther from the bluffs is going up first (probably to sell it while it has a view before the next home goes up in front of it).

 (Source: NJC)

(Source: NJC)

(Source: NJC)

(Source: NJC)

Mulligan, as you may remember, has been building the other under construction home I was blogging about in Lunada - this one: http://homesofpalosverdes.blogspot.com/2011/08/lunada-bay-coming-along-nicely.html 

As you'll recall, he used Doug Leach for that home.  But for the Paseo del Mar projects, he's using an known gentleman named Jesus Meza - who's address on the construction applications appears to be his own home in Los Angeles.  Doing a little more digging, it looks as though Meza used to work for Ashai Design and is now on his own.  (Anyone else have any info here?)

The Paseo del Mar house that's going up now looks like it will be another McMansion - oversized windows, front facing garage, a unusually imbalanced looking roofline, etc etc.  Also, note from the flagging how close the second home will be to this one!  Let's pray I'm wrong, but thus far, I'm not a fan.  Thoughts?

Lunada Bay - Coming along nicely

Update: Lunada Bay Spanish coming along nicely!  Let's hope they keep this one white... and not ruin it by painting it brown or beige!

(Source: NJC)

Update: Lunada Bay Spanish hits the market

Some of you may remember my recent post on a Spanish home under construction in Lunada Bay (recall that post here).

(Source: NJC)

Just saw that the home was officially put on the MLS this weekend - for, wait for it.... $2.8M!  You may recall from my earlier post that the owner bought the lot near the peak in 2007 for $1.3M and then earlier this year started construction on a 4,000sf, 5 bedroom, 4.5 bath home.  Well, for the curious readers, we now have floorplans!  See below:

(Source: MLS)

(Source: MLS)

As I had suspected, the floorplan is unsurprisingly predictable.  Entry foyer.  Garage on left.  Living room on right.  Stairs.  Central hallway.  Formal dining area between kitchen/family room and living room.  Guest bedroom downstairs is a little unique although in homes of this footprint and demographic, we also see in lieu of a downstairs bedroom, some sort of home office space.  Upstairs, much the same.  Three small bedrooms and a master. Boring. Boring. Boring.  I wonder if the interior has any unique architectural features, because the floorplan sure doesn't!

The listing description indicates that the home is being built by Mulligan Development, the same name that appears on the trust deed for the 2007 sale.  At 4,000sf, I'd suspect the build costs to range in the $750-900K mark depending on finishes.  Thus, the investment basis for Mr. Mulligan is in the $2.0- 2.2M range.  I think the current $2.8M asking price is fairly aggressive - if I were a betting man, I'd guess this trades around $2.2-2.4M tops.  Let's see how it unfolds!

KEY STATS

Location: Lunada Bay, PVE
Style: Spanish
Year built:  2011
Architect: Doug Leach
Square footage: 4,000sf (approximate)
Lot size: 9,780 (67'x148')

Development alert! We're losing a classic!

I noticed some flagging a few weeks back on one of the cooler classic homes in Lunada Bay - the McCreery House.

 (Source: Google Maps)

 (Source: PV Library)

Designed by Arthur C. Munson and built by Arthur Barnes in 1930, this Spanish home measures a comfortable but not excessive 3,725 square feet and sits on a flat 23,010sf lot.  It was originally built for Mrs. Madelon Matthews McCreery and then Ethel Barrymore.  Today, it is held by the Coors family (Enid Coors).

The lot itself is amazing - 160 feet wide, 155 feet deep.  It has room for a tennis court, big grass yard, motor court and several patios.  I haven't been able to snap my own photos and Google doesn't do this home justice - its perfectly elegant, understated, harmonious!

 (Source: Google Maps)

(Source: Google Maps)

(Source: Google Maps)


Anyhow, I noticed the flagging - a precursor to new building approval and part of the neighborhood compatibility process, a few weeks ago and that was a red flag to me - why would anyone want to tear down such a beautiful home with great history?  I was hoping that maybe it was just a facelift - a touch up, if you will, of the exterior.  But unfortunately, I was wrong.  A quick perusal through city council minutes and planning commission minutes shows indeed that Mrs. Coors heirs, who currently reside in Rancho Palos Verdes, applied for a new single family home permit.  And, to make matters worse, the architect they have chosen is Doug Leach.  Don't get me wrong - Doug has done some fine work, but he has also done some work of questionable integrity/fidelity.  Exhibit A. and Exhibit B.  I worry that this home will ultimately share the genetics of a McMansion rather than a classic Spanish home that would make Wallace Neff or George Washington Smith proud.

In fact, this home is just a few homes down from my last post's home, which has the garage facing the street rather than the alley.  The current home has the garage tucked away behind a quaint porte cochere.  What will Doug do here?  I don't know anyone in the requisite 300' radius who would have seen the drawings as part of the approval process, but perhaps one of my readers has a copy they'd like to share?  I sincerely hope that it is a tasteful Spanish home, faithful to the style, rather than a McMansion special.  I also hope that the owners preserve most if not all of the beautifully mature landscaping currently on the lot. To lose the home is such a tragedy, and to lose the wonderful trees would add further insult to injury.  Let's hope that what goes up in something at least as good as what's coming down.  Fingers crossed!

Another Spanish takes shape in Lunada Bay

Construction seems to be the reason for the season these days.  Lots of homes being flagged and framed as I drive around the Peninsula.  Today, I'm writing about another Spanish home going up in the bluffs of Lunada Bay.  The Mulligan Residence.

(Source: NJC)


Designed by Doug Leach in 2009, the home the Spanish styled home replaces a 1,893 square foot 1964 ranch style home which sat on a 9,780sf lot.  The original home was purchased in 2007 for $1.275M.

(Source: Google Maps)

(Source: Google Maps)

As you can see from above, the original home was nothing remarkable nor did it appear well maintained.  The lot is one of the few alley streets in PVE, meaning the garage on many of the older homes are located on the alley side, leaving the main street on which the home is located free from traffic.  As you can see in the new home that's going up here, the garage is placed front and center - what a shame!

(Source: NJC)

The new home looks sadly predictable.  Garage.  Central entry.  Living room balancing out the garage in the front.  Why oh why do people default to the default - what happened to the creativity in custom homes!

For a predictable home, this one may still work - the devil is in the details and final fishes.  Will it be white plaster or beige stucco?  How about the window trim?  Tiles used in the roof? Landscaping?

My fingers and toes are crossed hoping that this home turns out well.  I'd really like to see a nice, non-McMansion Spanish home set the tone for new builds in Lunada.

 (Source: NJC)

(Source: NJC)

KEY STATS

Location: Lunada Bay, PVE
Style: Spanish
Year built:  2011
Architect: Doug Leach
Square footage: Unknown, but probably 3,700 or thereabouts
Lot size: 9,780 (67'x148')