4025 39th Ave West; built 1940; 1,680 sqft; 53×167 ft lot
Listed 3 Jun 2010, $1,875,000
MLS V835246, RE/MAX
Sold 29 Jul 2010, $1,775,000
Listed 1 Oct 2010, $2,480,000
MLS V853284, Royal Le Page
Disclosure: “Seller never lived in property”[No kidding. -ed.]
Not sure what the flipper is thinking here. The lot tested the market through the summer and sold for $1.875M. Now somebody will think it’s suddenly worth 40% more than that? Or is this a small developer’s ‘Hail Mary’ pass before doing their own building? -vreaa
Looks like a built to suit flip. These sort of tear-build-sell deals are still alive and well but notice the investor now doesn’t want it done spec. That’s a bit of a change in the wind.
jesse -> So, do you mean that the new price includes the new build?
That’d leave very little margin for the developer (Paid $1.8M; lot allows up to 6000 sqft build. Even a 3000 sqft build at $175/sqft would leave very little margin for error).
I’d interpreted the new listing to mean an ask of $2.48M for the current set up, as is. Not very clear from the listing that it’s any different from that.
The price delta is about 600k, about the cost of a new build and demo. Don’t know the details, only the built to suit builders are certainly active these days.
OK, so it seems I may have been wrong here.
Is there anyway of verifying that this price includes the new build?
If it does, the developer is absolutely nuts, IMHO, because the profit margin is so low compared to the risk.
About 2 blocks from where I rent on the Westside, there is what appears to be a speculative SFH reno that has been inactive for a couple of months now. I presume the general contractor or property owner (perhaps one and the same?) must have cash flow issues. I would be curious to hear if others have recently seen more of these sorts of stalled, partly completed projects.
sounds like the frame at 11th and burrard.
I think you can buy the frame of the coach house for 1.1mil
Nope, the one I’m looking at is 5th and Blenheim. I wish I had time to catalogue this type of ‘anecdata’.
One quick story – we sold out and rent – and in our old building, there is a psycho that is a pariah, in every sense of the word. You know the type…lawsuits, and threats. Well, he, being a genius, overpriced his tiny one bedroom, and it has been languishing for six months. He snidely told me I sold for too little ( gee, we only doubled and took a 300k profit, tax free) while his sits there at least 30k too high.
Well, he took it off the market – and now has it back on for 49 k too much, a raise of 19 k, from a non sale point.
It’s called greed. Idiots like this are going down, big time.