Santa Monica 2018 Q4 Market Report

ENGEL & VÖLKERS Market Report Santa Monica 2018 • Quarter 4

Table of Contents Santa Monica: Overview 2

Ocean Park - Condominiums 15

North of Montana: Overview 3

Midtown Santa Monica - Single Family Residences 16

North of Montana - Single Family Residences 4

Midtown Santa Monica - Condominiums 17

North of San Vicente - Single Family Residences 5

Sunset Park: Overview 18

Santa Monica Canyon: Overview 6

Sunset Park - Single Family Residences 19

Santa Monica Canyon - Single Family Residences 7

Sunset Park - Condominiums 20

Wilshire-Montana: Overview 8 Wilshire-Montana - Single Family Residences 9 Wilshire-Montana - Condominiums 10 Ocean Avenue: Overview 11 Ocean Avenue - Condominiums 12 Ocean Park: Overview 13 Ocean Park - Single Family Residences 14

1

Santa Monica

Santa Monica is an affluent beach-front city situated on 3 miles of scenic coastline along the Santa Monica Bay, also known as the Queen’s Necklace. The city is also bordered on three sides by different neighborhoods of Los Angeles, including Pacific Palisades, Brentwood and Venice Beach. Santa Monica is home to many Hollywood celebrities and executives, and neighborhoods are a mixture of high-end single-family homes, condominiums, and apartment buildings. Santa Monica became a famed resort town in the early 20th century due largely in part to its agreeable coastal climate, and has since boomed through the revitalization of its downtown core, significant job growth (especially in the tech industry) and increased tourism. The Santa Monica Pier remains the most popular tourist attraction in the city, with the Pacific Wheel standing as an iconic staple of the Santa Monica coastline.

The scarcity of land to build combined with the city’s desirability to live and work have created a very stable residential real estate market. Home prices continue to experience an average annual growth rate of approximately six percent per year over the last decade and experienced minimal decreases during the most recent economic downturn.

Santa Monica is comprised of several neighborhoods. The most notable residential areas include North of Montana, Santa Monica Canyon, Wilshire-Montana, Ocean Avenue, Downtown Santa Monica, Ocean Park, Sunset Park and Midtown. The following is a residential real estate market performance report for the last quarter of 2018, as well as a report for the last ten years for each of these neighborhoods.

2

North of Montana

North of Montana is one of Santa Monica’s most upscale neighborhoods. Comprised of the streets between Montana Avenue and La Mesa Drive, the homes in this neighborhood are mostly single-family residences of 4 to 8 bedrooms, with selling prices ranging anywhere from $3 million to $25 million. The older two- and three-bedroom homes are generally acquired for land value and redevelopment.

The most expensive homes are located just north of San Vicente Blvd. on La Mesa Drive and Adelaide Drive, as well as the neighborhood West of 7th Street. The properties located between 7th Street to 17th Street and 22nd Street to 26th Street are built on lots that average approximately 7,500 square feet, generally 50’ x 150’. The Gillette’s Regent Square tract, from 17th Street to 21st Place (developed by King Gillette, the razor blade manufacturer), are larger and are approximately 8,900 square feet on 60’ x 150’ lots.

The area known as West of 7th includes those homes located between 7th Street and the Pacific Ocean. Lots in this area were originally about half an acre although many have been subdivided into 12,000 square foot lots over the years. Homes in this area are highly coveted due to their large lot size and proximity to the Palisades Park and the ocean. In recent years, there has been an up-tick in combining subdivided lots to return them to their original larger size.

The North of Montana neighborhood is served by two highly regarded public elementary schools - Franklin School for the residents on 15th Street through the west side of 26th Street, and Roosevelt School for the families on 14th Street down to Ocean Avenue.

3

North of Montana There were 14 home sales in the North of Montana neighborhood in the last quarter of 2018. Average and median sales prices were $4,932,142 and $4,360,500, respectively, experiencing increases of 6.6% and 8.9%. The average price per square foot equaled $1,277, a decrease of 3.5% from the same period of time in 2017.

Prices for land value or fixer-upper properties range between $3-$3.5 million in this neighborhood. Turn-key ready homes on 7,500 - 8,900 sf lots were sold from the high $3 million number to the low $5 millions, while new construction homes sold for prices well over $6 million. In the last few years, many homes were sold for land value, however, this number has started to decrease recently.

Overall, the combined average annual growth in price for homes in the North of Montana neighborhood equals approximately 8.1% over the last ten years.

North of Montana (Montana to San Vicente) - Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 QoQ% Average Sales Price $4,932,142 6.6% $4,627,254 -5.1% Average Price per SF $1,277 -3.5% $1,324 -5.0% Median Sale Price $4,360,500 8.9% $4,004,000 -11.0% Number of Sales 14 -36.4% 22 -6.7% Days on the Market 47 14.6% 41 0.0% Sale Price to Listing Price % 96.8% -1.5% 98.3% -0.7% New Listings 8 -61.9% 21 -72.4% Year-to-Date 2018 YoY% 2017 Average Sales Price $5,056,825 8.8% $4,647,140 Average Price per SF $1,283 -5.6% $1,359 Median Sale Price $4,532,000 13.1% $4,008,000 Number of Sales 57 -19.7% 71 North of Montana (Montana to San Vicente) - 10 Year Performance Number Average Sales of Sales Price Price/SF % Change 2009 57 $2,517,844 $776 N/A 2010 67 $2,415,000 $791 2.0% 2011 68 $2,690,784 $827 4.5% 2012 91 $3,063,594 $851 2.9% 2013 76 $3,442,816 $1,030 21.1% 2014 61 $3,885,292 $983 -4.6% 2015 68 $3,935,524 $1,310 33.3% 2016 55 $4,174,633 $1,248 -4.7% 2017 71 $4,647,140 $1,359 8.8% 2018 57 $5,056,825 $1,283 -5.6% CAAG 8.1%

4

Q3-18 $5,194,466 $1,344 $4,900,000 15 47 97.5% 29

North of Montana (Montana to San Vicente) 10 YEAR VOLUME AND AVERAGE SALES PRICE $5,500,000

100

$5,000,000 $4,500,000

80

$4,000,000 $3,500,000

60

$3,000,000 $2,500,000

Number of Sales 40

$2,000,000 $1,500,000

Average Sales Price

20

North of San Vicente There were no home sales in the North of San Vicente neighborhood in the last quarter of 2018. Overall, there were only 4 sales in this neighborhood in 2018.

Lot and property sizes in this neighborhood vary greatly. Some homes have spectacular ocean or golf course views, which is reflected in their sales prices.

Overall, the combined average annual growth in price for homes in the North of San Vicente neighborhood equals approximately 1.0% over the last ten years.

North of San Vicente - Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price N/A N/A $5,460,000 Average Price per SF N/A N/A $1,033 Median Sale Price N/A N/A $5,460,000 Number of Sales 0 N/A 1 Days on the Market N/A N/A 60 Sale Price to Listing Price % N/A N/A 118.7% New Listings 0 N/A 3 Year-to-Date 2018 YoY% 2017 Average Sales Price $6,861,887 33.4% $5,142,500 Average Price per SF $1,586 6.7% $1,486 Median Sale Price $6,576,275 20.4% $5,460,000 Number of Sales 4 -20.0% 5 North of San Vicente - 10 Year Performance

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Sales 2 6 5 7 4 9 3 3 5 4 CAAG

5

Average Sales Price $6,267,500 $3,322,500 $8,302,040 $6,246,837 $7,843,750 $7,128,439 $6,287,500 $10,976,666 $5,142,500 $6,861,887 1.0%

Price/SF $993 $964 $597 $971 $1,400 $1,183 $1,157 $1,469 $1,486 $1,586

QoQ% N/A N/A N/A N/A N/A N/A N/A

Q3-18 $6,970,000 $1,486 $6,970,000 1 78 95.0% 2

North of San Vicente 10 YEAR VOLUME AND AVERAGE SALES PRICE

% Change N/A -2.9% -38.1% 62.6% 44.2% -15.5% -2.2% 24.2% 28.4% 8.0%

$12,000,000

12

$10,000,000

10

$8,000,000

8

$6,000,000

6

$4,000,000

4

$2,000,000

2

$0

0

Average Sales Price Number of Sales

Santa Monica Canyon

Just North of Santa Monica, adjacent to Pacific Palisades, is the area known as the Santa Monica Canyon. With winding roads and steep canyon walls, this small enclave shares more with wooded Topanga Canyon than the city of Santa Monica. Home to some musicians, movie stars and aging beach bums, the Santa Monica Canyon area is, in fact, not part of the City of Santa Monica. Rather, this misleadingly-named neighborhood is part of the city of Los Angeles, and its Canyon Charter Elementary School is one of the most prestigious elementary schools in the Los Angeles Unified School District. The border between Santa Monica Canyon and Pacific Palisades is Chautauqua Boulevard.

Homes in the canyon vary in style and size and many of them boast breathtaking ocean views. Lots are usually smaller in size and are generally sloping. Home prices in this neighborhood range anywhere from $1,400,000 for a small cottage to over $23 million for a large estate.

6

Santa Monica Canyon There was one home sold in the last quarter of 2018 in Santa Monica Canyon. The sales prices was $3,650,000 with a price per square foot of $1,357. In 2018, the neighborhood only recorded 11 home sales, the lowest number in the last 10 years.

Overall, the combined average annual growth in price for homes in the Santa Monica Canyon neighborhood equals approximately 5.9% over the last ten years.

Santa Monica Canyon - Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price $3,650,000 -8.4% $3,983,833 Average Price per SF $1,357 7.6% $1,261 Median Sale Price $3,650,000 -12.7% $4,179,000 Number of Sales 1 -83.3% 6 Days on the Market 10 -81.1% 53 Sale Price to Listing Price % 104.4% 11.6% 93.6% New Listings 5 400.0% 1 Year-to-Date 2018 YoY% 2017 Average Sales Price $3,814,388 -8.3% $4,161,563 Average Price per SF $1,434 7.1% $1,339 Median Sale Price $3,600,000 -7.7% $3,900,000 Number of Sales 11 -56.0% 25 Santa Monica Canyon - 10 Year Performance

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Sales 19 27 18 22 19 25 18 20 25 11 CAAG

7

Average Sales Price $2,283,474 $2,508,033 $2,293,871 $2,492,553 $2,961,260 $3,099,615 $4,656,541 $4,043,075 $4,161,563 $3,814,388 5.9%

Price/SF % Change $879 N/A $763 -13.2% $859 12.6% $820 -4.6% $1,047 27.8% $1,121 7.0% $1,445 29.0% $1,302 16.2% $1,339 -7.3% $1,434 7.1%

QoQ% -1.6% -13.9% 28.5% -83.3% -85.5% 12.7% 0.0%

Q3-18 $3,707,500 $1,576 $2,840,000 6 69 92.7% 5

Santa Monica Canyon 10 YEAR VOLUME AND AVERAGE SALES PRICE $5,000,000

28

$4,500,000

26

$4,000,000

24

$3,500,000 $3,000,000 $2,500,000

22 20 18 16

$2,000,000

14

$1,500,000

12

$1,000,000

10

Average Sales Price Number of Sales

Wilshire-Montana

Also known as the North of Wilshire neighborhood, this area is comprised of the streets north of Wilshire Boulevard and south of Montana Avenue. Laid out on a consistent grid of numbered streets, this is primarily a residential neighborhood with many mid-sized homes, condominiums and apartment buildings. On its westernmost end, this neighborhood includes several well-preserved Victorian duplexes, otherwise unique in the city. Smaller craftsman bungalows line the east-west avenues like Idaho, Washington and California. Lincoln Middle School is on 14th Street and California Avenue. This neighborhood is also home to the original Gehry Residence, a deconstructiviststyle masterpiece which Gehry built for himself and his family.

Prices for single-family homes in this neighborhood typically range from $1.8 million to $6 million, depending on the house and lot size. Prices for condos and townhomes range from approximately $850,000 for an older twobedroom unit to over $2 million for a newer two- to three-bedroom townhouse.

The area east of 26th Street is known as the College Streets, including Princeton, Harvard, Yale, Stanford and Berkeley. Franklin Street and Centinela Avenue complete this area of the neighborhood. Centinela Avenue divides Santa Monica from the Brentwood district of Los Angeles.

8

Wilshire-Montana - Single Family Residences There were 3 single family homes sold in this neighborhood in the last quarter of 2018. The average and median sales price were $2,500,000 and $2,450,000, respectively, representing a decrease of 9.8% and 10.0% year over year. However, the average price per square foot increased by 14.9% to $1,688 from the same period of time last year.

The combined average annual growth in price for homes in the Wilshire-Montana neighborhood equals approximately 7.5% over the last ten years.

Wilshire-Montana - Single Family Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price $2,500,000 -9.8% $2,770,792 Average Price per SF $1,688 14.9% $1,469 Median Sale Price $2,450,000 -10.0% $2,723,314 Number of Sales 3 -50.0% 6 Days on the Market 59 5.4% 56 Sale Price to Listing Price % 98.9% -0.2% 99.1% New Listings 8 33.3% 6 Year-to-Date 2018 YoY% 2017 Average Sales Price $3,121,444 21.4% $2,572,036 Average Price per SF $1,387 4.7% $1,325 Median Sale Price $2,687,500 4.4% $2,574,128 Number of Sales 20 -35.5% 31 Wilshire-Montana - Single Family 10 Year Performance Number Average Sales of Sales Price Price/SF % Change 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

22 18 34 31 28 30 21 27 31 20 CAAG

9

$1,623,301 $1,746,920 $1,613,408 $1,873,311 $2,052,286 $2,201,333 $2,444,268 $3,030,028 $2,572,036 $3,121,444 7.5%

$696 $752 $731 $749 $780 $962 $1,238 $1,227 $1,325 $1,387

N/A 8.1% -2.8% 2.5% 4.1% 23.3% 28.7% -0.9% 8.0% 4.7%

QoQ% -34.2% 23.6% -13.1% -57.1% 96.7% -1.9% -46.7%

Q3-18 $3,798,857 $1,366 $2,820,000 7 30 100.8% 15

Wilshire-Montana - Single Family 10 YEAR VOLUME AND AVERAGE SALES PRICE $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000

40 35 30 25

Average Sales Price

20

Number of Sales

15 10

Wilshire-Montana - Condominiums Over the year, the condominium market has continued to experience a steady demand in the Wilshire-Montana neighborhood. There were a total of 30 condo sales in the last quarter of 2018 between Wilshire and Montana.

Prices continued to grow from 2017; however, the last quarter of 2018 recorded some decreases. The average sales price dropped by 5.5% to $1,334,216, while the median sales price decreased by 3.6% to $1,387,500 year over year. The average price per square foot also decreased by 8.3% year over year to $890.

On average, one-bedroom units are around 700 sf in size and sold on average for $686,684, while two-bedroom units average 1,378 sf in size with an average sales price of $1,314,265. Three-bedroom units averaged 1,775 sf with an average sales price of $1,662,392.

The combined average annual growth in price for condos in the Wilshire-Montana neighborhood equals approximately 6.8% over the last ten years.

Wilshire-Montana - Condominiums - 2018 Number of Sales

Bedroom 1 2 3

Condos on Ocean Avenue are not included in these sales and are discussed separately in the next section.

19 77 44

Wilshire-Montana - Condominiums Q4 2018

Q4-2018 Average Sales Price Average Price per SF Median Sale Price Number of Sales Days on the Market Sale Price to Listing Price % New Listings Year-to-Date Average Sales Price Average Price per SF Median Sale Price Number of Sales

Q4-18 $1,334,216 $890 $1,387,500 30 46 99.8% 47 2018 $1,371,734 $952 $1,300,000 144

Wilshire-Montana - Condominiums 10 Year Performance Number Average Sales % Price of Sales Price/SF Change 2009 126 $757,659 $569 N/A 2010 143 $852,855 $568 0.0% 2011 115 $805,927 $540 -5.0% 2012 170 $857,119 $589 9.1% 2013 168 $945,200 $667 13.2% 2014 135 $983,951 $705 5.7% 2015 165 $1,152,688 $793 12.4% 2016 127 $1,235,206 $837 18.8% 2017 143 $1,252,094 $888 12.0% 2018 144 $1,371,734 $952 13.7% CAAG 6.8%

10

YoY% -5.5% -8.3% -3.6% -11.8% 58.6% -2.8% 51.6% YoY% 9.6% 7.2% 6.6% 0.7%

Q4-17 $1,411,623 $971 $1,440,000 34 29 102.7% 31 2017 $1,252,094 $888 $1,220,000 143

Average Sqft 700 1,378 1,775

QoQ% -0.6% -8.0% 14.9% -21.1% 21.1% -1.1% -9.6%

Average Sales Price

Average Price/Sqft

$686,684 $1,314,265 $1,662,392

Q3-18 $1,342,809 $967 $1,207,250 38 38 100.9% 52

Wilshire-Montana Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE 250 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000

230 210 190 170 150 130 110 90 70

$400,000

50

Average Sales Price Number of Sales

$987 $955 $930

Ocean Avenue

Ocean Avenue is a major thoroughfare in Santa Monica that runs parallel along Palisades Park above Pacific Coast Highway and offers stunning views of the Pacific Ocean. The residential real estate on Ocean Avenue is mostly comprised of condominiums, and includes some of the most expensive properties in Southern California, as most residences have a full view of the beach, pier and the Pacific Ocean. Although scarce, new developments are starting to pop up in this area. The most recent apartment development on Ocean Avenue is 301 Ocean, which consists of 38 luxuriously appointed residences in 2- and 3-story buildings with central courtyard gardens and most units boasting ocean views. South of California Avenue are several hotels, restaurants, businesses and homes. The world-famous Santa Monica Pier is located at Ocean Avenue and Colorado Avenue.

Condominium units on Ocean Avenue range from approximately $1.2 million for a smaller two-bedroom condo to well over $10 million for an ocean view penthouse.

11

Ocean Avenue - Condominiums There were 3 condominium sales on Ocean Avenue in the last quarter of 2018. The average price per square foot was $1,418, a drop of 21.8% from the same period of time in 2017. The average sales price was $6,101,666 due to the sale of a 8,026 sf penthouse unit that sold for $14.5 million. The median sales price, however, remained steady with an increase of only 1.9% to $2,650,000 year over year.

Overall, the combined average annual growth in price for condos on Ocean Avenue equals approximately 5.9% over the last ten years.

One-bedroom units have an average size of 1,015 sf with an average sales price of $1,296,000, while two-bedroom units average 1,720 sf with an average sales price of $2,571,916.

Only two three-bedroom condos were sold on Ocean Avenue in 2018 for an average price of $3,287,500 with a living size of 3,038.

Ocean Avenue - Condominiums - 2018 Number Average Average Average Bedroom of Sales SF Sales Price Price/SF 1 4 1,015 $1,296,000 $1,256 2 18 1,720 $2,571,916 $1,490 3 2 3,038 $3,287,500 $1,090

Ocean Avenue - Condominiums Q4 2018 Q4-2018 Q4-2018 YoY% Q4-17 Average Sales Price $6,101,666 78.8% $3,412,678 Average Price per SF $1,418 -21.8% $1,814 Median Sale Price $2,650,000 1.9% $2,600,000 Number of Sales 3 -57.1% 7 Days on the Market 90 130.8% 39 Sale Price to Listing Price % 95.4% -3.8% 99.2% New Listings 17 -15.0% 20 Year-to-Date 2018 YoY% 2017 Average Sales Price $2,902,140 14.4% $2,537,807 Average Price per SF $1,431 -11.9% $1,624 Median Sale Price $2,350,000 2.2% $2,300,000 Number of Sales 25 -32.4% 37 Ocean Avenue - Condominiums 10 Year Performance Number Average Sales Price Price/SF % Change of Sales 2009 25 $1,739,700 $992 N/A 2010 21 $1,373,308 $885 -10.8% -7.5% 2011 29 $1,269,121 $819 2012 41 $1,541,913 $981 19.8% 2013 27 $2,099,296 $1,171 19.4% 2014 105 $2,257,834 $1,436 22.6% 2015 97 $2,024,975 $1,287 -10.4% 2016 55 $2,090,577 $1,401 -2.4% 2017 37 $2,537,807 $1,624 26.2% 2018 25 $2,902,140 $1,431 2.1% CAAG 5.9%

12

QoQ% 149.0% 7.6% 17.8% -62.5% 32.4% -1.5% -22.7%

Q3-18 $2,450,375 $1,318 $2,250,000 8 68 96.9% 22

Ocean Avenue Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,750,000 $2,500,000

110 90

$2,250,000 $2,000,000

70

$1,750,000

50

Average Sales Price

$1,500,000 $1,250,000 $1,000,000

30 10

Number of Sales

Ocean Park

Located in the southwest corner of Santa Monica is the Ocean Park neighborhood. This neighborhood has a mix of older, smaller homes, apartment buildings and condos. Several housing towers are located along the beach.

The area has a funky, artsy feel similar in manner to its neighbor, Venice Beach. Many Santa Monica residents come to shop and dine on Main Street, which is home to many boutiques and restaurants. Main Street also hosts a weekly farmers market on Sundays, in addition to one hosted on Wednesdays and Saturdays by the Third Street Promenade. SMASH, an alternative school, and John Muir Elementary School are in this neighborhood, as well as Olympic High, an alternative high school.

The Ocean Park area of Santa Monica has become increasingly popular amongst young professionals, especially those in the tech sector, which continues to grow in this area as well as in neighboring Venice and Playa Vista areas.

Tech behemoth, SnapChat, has been influential in this increased popularity as they continue to buy commercial real estate spaces to expand their offices in these neighborhoods, which are now part of what has been named “Silicon Beach�. Real estate in this neighborhood has become more expensive over the years as the area grows in popularity due to its liveliness and proximity to the ocean and has seen several new developments.

13

Ocean Park - Single Family Residences There were 4 single family homes sold in Ocean Park in the last quarter of 2018. Average and median sales prices were $2,189,406 and $2,225,000, respectively. While the average sales price dropped by 1.9%, the median sales price grew by 11.3% year over year. The average price per square foot equaled $1,383, an increase of 14.6%.

Overall, this neighborhood has a low inventory of single family homes and is comprised of many condominium, apartment and townhome buildings.

The combined average annual growth in price for single family homes in Ocean Park equals approximately 6.3% over the last ten years.

Ocean Park - Single Family Q4 2018 YoY% Q4-2017 Q4-2018 Q4-2018 Average Sales Price $2,189,406 -1.9% $2,231,428 Average Price per SF $1,383 14.6% $1,207 Median Sale Price $2,225,000 11.3% $2,000,000 Number of Sales 4 -42.9% 7 Days on the Market 41 57.7% 26 Sale Price to Listing Price % 96.1% -2.1% 98.1% New Listings 6 -25.0% 8 Year-to-Date 2018 YoY% 2017 Average Sales Price $2,178,477 0.2% $2,174,700 Average Price per SF $1,354 6.8% $1,268 Median Sale Price $2,162,509 9.5% $1,975,000 Number of Sales 16 -20.0% 20 Ocean Park - Single Family 10 Year Performance Number of Average Sales Sales Price Price/SF % Change 2009 20 $1,253,828 $763 N/A 2010 31 $1,302,598 $729 -4.4% 2011 28 $1,189,409 $664 -9.0% 2012 15 $1,623,867 $709 6.9% 2013 28 $1,752,740 $832 17.2% 2014 22 $1,676,050 $1,089 30.9% 2015 24 $2,154,820 $1,314 20.7% 2016 26 $1,973,846 $1,262 -3.9% 2017 20 $2,174,700 $1,268 0.5% 2018 16 $2,178,477 $1,354 6.7% CAAG 6.3%

14

QoQ% -2.5% -9.7% -3.7% 33.3% 10.8% -5.0% -53.8%

Q3-2018 $2,245,000 $1,531 $2,310,000 3 37 101.1% 13

Ocean Park Single Family 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,250,000

40

$2,000,000 $1,750,000

30

$1,500,000 Average Sales Price

$1,250,000 $1,000,000

20

$750,000 $500,000

10

Number of Sales

Ocean Park - Condominiums There were 14 condominium sales in Ocean Park in the last quarter of 2018. The average sales price decreased by 20.1% to $1,159,314, while the median sales price dropped by 23.6% to $1,002,500, year over year. The average price per square foot decreased by 4.0% to $1,038 year over year.

One-bedroom units average 745 sf in size and sold on average for $775,853, while two-bedroom units have an average size of 1,273 sf and sold on average for $1,287,173. Three-bedroom units sold with an average size of 1,679 sf for $1,777,111.

The combined average annual growth in price for condos in the Ocean Park neighborhood equals approximately 5.7% over the last ten years.

Ocean Park - Condominiums - 2018 Number of Average Average Average Bedroom Sales Sqft Sales Price Price/Sqft 1 16 745 $775,853 $1,038 2 34 1,273 $1,287,173 $1,014 3 9 1,679 $1,777,111 $1,048

Ocean Park - Condominiums Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price $1,159,314 -20.1% $1,450,125 Average Price per SF $1,038 -4.0% $1,081 Median Sale Price $1,002,500 -23.6% $1,312,500 Number of Sales 14 -12.5% 16 Days on the Market 60 57.9% 38 Sale Price to Listing Price % 97.3% -2.8% 100.1% New Listings 14 -12.5% 16 Year-to-Date 2018 YoY% 2017 Average Sales Price $1,281,192 -7.1% $1,379,809 Average Price per SF $1,029 3.5% $994 Median Sale Price $1,199,000 -6.5% $1,282,000 Number of Sales 60 -4.8% 63 Ocean Park - Condominiums 10 Year Performance Number of Average Sales Price Price/SF % Change Sales 2009 65 $776,114 $634 N/A 2010 70 $744,721 $632 -0.4% 2011 65 $766,864 $594 -5.9% 2012 75 $946,634 $683 15.0% 2013 61 $812,332 $724 6.0% 2014 61 $1,040,502 $858 18.4% 2015 65 $1,099,680 $898 4.6% 2016 52 $1,167,491 $972 13.4% 2017 63 $1,379,809 $994 10.8% 2018 60 $1,281,192 $1,029 5.8% CAAG 5.7%

15

QoQ% -13.6% -0.3% -17.7% 0.0% 106.9% -2.6% -44.0%

Q3-18 $1,341,714 $1,041 $1,217,500 14 29 99.9% 25

Ocean Park Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE $1,500,000

80

$1,250,000

70

$1,000,000

60

$750,000

50

$500,000

40

Average Sales Price Number of Sales

Midtown Santa Monica - Single Family Residences Midtown Santa Monica comprises most of the 90404 zip code and stretches from 14th Street to Centinela Avenue at its westernmost and easternmost extremities. It also stretches from Wilshire Boulevard to Olympic Boulevard at its northern and southern ends. Alternating between major thoroughfares and quiet residential lanes, Midtown is less congested with tourists than other parts of the city. Planned on a regular grid, Midtown Santa Monica was once home to many picturesque Craftsman houses and brightly painted Victorians, though only occasional examples of these can still be found. In the early 1940s, the first wave of suburbanization overtook this part of the city and many preexisting structures were razed and replaced with tiny square California Bungalows with green lawns and small, private backyards.

In the 1960s, many of these increasingly dilapidated structures were demolished in favor of 4- and 5-unit condominium complexes and apartments. The easternmost edge of Midtown Santa Monica, often referred to as the “college streets” where Princeton, Harvard, Yale, Stanford and Berkeley intersect with Wilshire Boulevard, represents one of the city’s primary gateways. Commemorating the spot where the cities of Santa Monica and Brentwood share a border is the “Wave,” a sculpture by Tony De Lap arching over Wilshire Boulevard near Franklin Avenue.

Today, there is a mix of single family homes, condominiums and apartment buildings, as well as an increased amount of office spaces, although the neighborhood is predominantly condos and apartment buildings. There are more planned or proposed developments for the near future in the area immediately surrounding the new light rail Expo Line, which began operation in May 2016 for the first time in 63 years and has drawn a lot of attention to this neighborhood.

Midtown Santa Monica - Single Family 10 Year Performance Number Average Sales Price/SF % Change of Sales Price 2009 4 $652,875 $683 N/A 2010 7 $853,857 $645 -5.6% 2011 2 $547,500 $590 -8.6% 2012 4 $551,750 $757 28.5% 2013 4 $1,212,561 $838 10.6% 2014 1 $749,000 $1,040 24.1% 2015 3 $1,071,666 $1,132 8.8% 2016 4 $1,147,500 $1,073 -5.2% 2017 4 $1,234,400 $1,225 14.2% 2018 5 $1,726,000 $1,113 -9.2% CAAG 11.4%

16

Midtown Santa Monica - Condominiums There were 16 condo sales in this neighborhood in the last quarter of 2018. The average sales price experienced a decrease of 2.7% to $950,895, while the median sales price remained steady with a 0.4% increase to $955,000 from the same quarter in 2017. The average price per square foot grew by 8.7% to $813 year over year.

One-bedroom condos average 709 sf and sold on average for $655,166. Two-bedroom units average 1,233 sf and sold for an average price of $1,001,459. There were 14 sales of three-bedroom units with an average square footage of 1,535 and an average sales price of $1,103,750.

The combined average annual growth in price for condos in the Midtown neighborhood equals approximately 5.6% over the last ten years.

Midtown Santa Monica - Condominiums - 2018 Number Average Average Average Bedroom of Sales Sales Price Price/SF SF 1 12 709 $655,166 $924 2 41 1,233 $1,001,459 $817 3 14 1,535 $1,103,750 $716

Midtown Santa Monica - Condominiums Q4 2018 Q4-2018 Q4-2018 YoY% Q4-2017 QoQ% Average Sales Price $950,895 -2.7% $977,466 -7.7% Average Price per SF $813 8.7% $748 7.1% Median Sale Price $955,000 0.4% $951,500 -1.0% -11.1% Number of Sales 16 -11.1% 18 Days on the Market 57 26.7% 45 21.3% -1.4% Sale Price to Listing Price % 99.4% -2.7% 102.2% New Listings 12 20.0% 10 -62.5% Year-to-Date 2018 YoY% 2017 Average Sales Price $960,810 -2.9% $989,960 Average Price per SF $815 3.3% $789 Median Sale Price $950,000 0.0% $950,000 Number of Sales 67 -17.3% 81 Midtown Santa Monica - Condominiums 10 Year Performance Average Sales Number of Sales Price Price/SF % Change 2009 73 $588,094 $476 N/A -1.5% 2010 58 $591,452 $469 2011 64 $541,197 $429 -8.5% 2012 77 $520,705 $441 2.7% 2013 87 $674,648 $537 21.8% 2014 81 $752,449 $570 6.1% 2015 80 $757,422 $629 10.3% 2016 83 $867,670 $696 22.1% 2017 81 $989,960 $789 25.5% 2018 67 $960,810 $815 17.1% CAAG 5.6%

17

Q3-2018 $1,030,416 $759 $965,000 18 47 100.8% 32

Midtown Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE $1,000,000 $800,000 $600,000

150 130 110 90 70

$400,000

50 30

$200,000

10

Average Sales Price Number of Sales

Sunset Park

Running east of Lincoln Boulevard, south of Pico Boulevard and around the Santa Monica Airport to Centinela Avenue is the neighborhood known as Sunset Park. This is mostly a residential area composed primarily of single family homes, with styles ranging from Craftsman homes built in the 1930s, to contemporary architectural and more traditional styles.

Grant Elementary School and John Adams Middle School are located in this neighborhood. Santa Monica College, a two-year community college, is also located in Sunset Park. The Santa Monica Airport, one of the busiest singlerunway airports in the nation, is located along the southern borders of the neighborhood.

Prices in the Sunset Park neighborhood generally range from approximately $1.3 million for a small bungalow to around $3.5 million for larger, new construction homes. High demand and a very active market have recently increased the value of the neighborhood resulting in prices climbing to the $4 million range. The announcement of the closing of the Santa Monica airport in 10 years has drawn even more attention to the neighborhood and its real estate.

Condos and townhomes can be found towards the east end of Sunset Park on streets such as 34th and Centinela Avenue as well as along Pico and Ocean Park Boulevard. Prices for condominium units and townhomes range from around $600,000 to around $1.5 million.

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Sunset Park - Single Family Residences There were 12 single family home sales in the Sunset Park neighborhood in the last quarter of 2018. The average and median sales prices were $2,001,791 and $1,847,500, respectively, representing a decrease of 12.3% and 0.1% year over year. The average price per square foot was $1,281, an increase of 3.8% from the same period of time last year.

This neighborhood has seen an increased number of sales for land value in recent years. While smaller lots from 4,000 - 5,000 sf sold between $1,100,000 - $1,200,000, larger lots (about 6,000 - 7,000 sf) sold from $1,600,000 to well over $1,800,000. Fully remodeled and expanded homes have sold near the $3 million mark, and new construction are now selling for well over $3 million.

The combined average annual growth in prices for homes in the Sunset Park neighborhood equals approximately 7.9% over the last ten years.

Sunset Park - Single Family Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price $2,001,291 -12.3% $2,281,464 Average Price per SF $1,281 3.8% $1,234 Median Sale Price $1,847,500 -0.1% $1,850,000 Number of Sales 12 9.1% 11 Days on the Market 35 -5.4% 37 Sale Price to Listing Price % 100.0% 0.8% 99.2% New Listings 15 -21.1% 19 Year-to-Date 2018 YoY% 2017 Average Sales Price $2,193,094 11.4% $1,968,560 Average Price per SF $1,151 3.9% $1,108 Median Sale Price $1,920,000 3.8% $1,850,000 Number of Sales 65 -8.5% 71 Sunset Park - Single Family 10 Year Performance Number Average Sales Price Price/SF % Change of Sales 2009 62 $1,110,681 $588 N/A 2010 66 $981,816 $604 2.7% 2011 70 $1,079,782 $583 -3.5% 2012 86 $1,173,058 $612 5.0% 2013 77 $1,382,203 $750 22.5% 2014 84 $1,514,687 $870 16.1% 2015 83 $1,708,830 $952 9.4% 2016 79 $1,991,857 $965 10.9% 2017 71 $1,968,560 $1,108 16.4% 2018 65 $2,193,094 $1,151 19.3% CAAG 7.9%

19

QoQ% -13.1% 16.1% -9.9% -20.0% -10.3% -0.2% -28.6%

Q3-18 $2,301,711 $1,103 $2,050,000 15 39 100.2% 21

Sunset Park Single Family 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,500,000

100

$2,250,000 $2,000,000 $1,750,000

80

$1,500,000 $1,250,000 $1,000,000

Average Sales Price 60

$750,000 $500,000

40

Number of Sales

Sunset Park - Condominiums There were 8 condominium sales in this neighborhood in the last quarter of 2018. The average sales price increased by 9.7% to $1,049,375, while the median sales price grew by 5.4% to $1,020,000, year over year. The average price per square foot was $732, a decrease of 7.9% from the last quarter of 2017.

In 2018, there were two sales of one-bedroom units with an average of 627 sf in size, and an average sales price of $512,500. Two-bedroom units averaged 1,320 sf with an average sales price of $1,007,335, while three-bedroom units sold on average for $1,041,875 with an average size of 1,402 sf.

The combined average annual growth in prices for homes in the Sunset Park neighborhood equals approximately 6.2% over the last ten years.

Sunset Park - Condominiums - 2018 Number Average Average Average Bedroom of Sales SF Sales Price Price/SF 1 2 627 $512,500 $817 2 16 1,320 $1,007,335 $785 3 8 1,402 $1,041,875 $745

Sunset Park - Condominiums Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price $1,049,375 9.7% $956,750 Average Price per SF $732 -7.9% $795 Median Sale Price $1,020,000 5.4% $968,000 Number of Sales 8 100.0% 4 Days on the Market 57 235.3% 17 Sale Price to Listing Price % 100.1% -6.0% 106.5% New Listings 6 -33.3% 9 Year-to-Date 2018 YoY% 2017 Average Sales Price $979,899 7.2% $914,500 Average Price per SF $775 9.7% $707 Median Sale Price $1,000,000 9.0% $917,500 Number of Sales 26 0.0% 26 Sunset Park - Condominiums 10 Year Performance

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

20

Number of Sales 23 19 29 38 31 41 49 30 26 26 CAAG

Average Sales Price $571,435 $538,579 $535,058 $544,789 $642,202 $712,178 $749,840 $856,483 $914,500 $979,899 6.2%

Price/SF $464 $426 $392 $422 $468 $551 $583 $652 $707 $775

% Change N/A -8.1% -8.2% 7.6% 11.1% 17.7% 5.9% 18.4% 21.2% 18.8%

QoQ% 11.8% -12.7% 14.2% 100.0% 147.8% -3.9% -33.3%

Q3-18 $938,968 $839 $892,937 4 23 104.2% 9

Sunset Park Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000

60 50 40 30 20 10

Average Sales Price Number of Sales

Published by: Engel & VĂślkers Santa Monica 1123 Montana Avenue Santa Monica, CA 90403 DRE# 01911544 Office +1-310-460-2525 Fax +1-310-576-2424 www.SantaMonica.EVUSA.com Disclaimer Based on information from the Association of REALTORSÂŽ/Multiple Listing as of 1/27/19. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. This is not intended as a solicitation if your property is currently listed with another broker.