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ENGEL & VÖLKERS Market Report Venice & Marina Del Rey 2018 • Quarter 4

Table of Contents Venice: Overview 2 Venice - Single Family Residences 3 Venice - Condominiums 4 Venice - West of Lincoln: Overview 5 West of Lincoln - Single Family Residences 6 Venice - East of Lincoln: Overview 7 East of Lincoln - Single Family Residences 8 Marina del Rey: Overview 9 Marina del Rey - Single Family Residences 10 Marina del Rey - Condominiums 11

Venice

Venice is a small beach-front community in the city of Los Angeles. It is centrally located just south of Santa Monica, north of Marina del Rey, and west of the 405 Freeway. Although it is located in close proximity to major highways and the Los Angeles International Airport, the neighborhood is still famous for its laid-back beach culture and vibrant, creative arts scene. Venice, which was originally called “Venice of America”, was founded in 1905 as a seaside resort town by Abbot Kinney, a tobacco millionaire and real estate developer. When he developed the neighborhood, he was so inspired by Venice, Italy, that he recreated the canals and even imported gondolas and gondoliers from Italy. Kinney’s dream was to build a great cultural mecca complete with entertainment, freak shows and amusement thoroughfares showing foreign exhibits. This, of course, brought many visitors to Venice and inspired many to move there. Today, Venice is still famous for its canals, the beach, the lively ocean front walk, and its original funkiness that still lives here through street performers, artists, fortune tellers and vendors who set their creativity free in this unique community. Housing opportunities in Venice are diverse. Characteristics of the neighborhood include small, 1920’s California Bungalows, splendid Craftsman homes, and European loft-style studios. The real estate market has experienced significant changes in recent years with young professionals and tech companies moving into the neighborhood increasing the demand for more upscale options.

Venice - Single Family Residences There were 48 single family home sales in Venice in the last quarter of 2018. While the average sales price increased by 2.7% to $2,170,647 year over year, the median sales price decreased by 3.2% to $1,900,000. The average price per square foot was $1,221, experiencing a decrease of 4.0% from the same quarter in 2017. The highest single family home sale in 2018 was a new construction home on Appleton Way that sold for $6,000,000. Over the past few years, several properties in Venice have sold for development. Now, with many new developments on the market, prices have been rising. The combined annual average growth in sales prices over the last ten years in Venice equals approximately 8.3%.

Venice Beach - Single Family Q4 2018 Q4-2018 Q4-18 YoY% Q4-17 Average Sales Price $2,170,647 2.7% $2,113,837 Average Price per SF $1,221 -4.0% $1,272 Median Sale Price $1,900,000 -3.2% $1,962,500 Number of Sales 48 -7.7% 52 Days on the Market 52 10.6% 47 Sale Price to Listing Price % 97.0% -0.5% 97.5% New Listings 74 4.2% 71 Year-To-Date 2018 YoY% 2017 Average Sales Price $2,316,815 2.3% $2,263,881 Average Price per SF $1,307 7.2% $1,219 Median Sale Price $2,075,000 5.3% $1,970,000 Number of Sales 195 -5.8% 207 Venice Beach - Single Family 10 Year Performance Number of Average Sales Sales Price Price/SF % Change 2009 122 $1,132,768 $655 N/A 2010 156 $1,142,376 $640 -2.3% 0.1% 2011 189 $1,141,036 $641 $1,300,889 $708 10.5% 2012 222 2013 224 $1,546,001 $859 21.2% 2014 211 $1,830,567 $1,038 20.8% 2015 199 $1,972,158 $1,120 8.0% 2016 211 $2,152,893 $1,196 6.7% 2017 207 $2,263,881 $1,219 2.0% 2018 195 $2,316,815 $1,307 7.2% CAAG 8.3%

QoQ% -9.6% -15.1% -12.0% -11.1% -13.3% -2.1% -26.0%

Q3-18 $2,400,632 $1,438 $2,160,000 54 60 99.1% 100

Venice Beach - Single Family 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,400,000

250

$2,200,000

225

$2,000,000 $1,800,000 $1,600,000 $1,400,000

200 175 150

$1,200,000

125

$1,000,000

100

Average Sales Price Number of Sales

Venice - Condominiums There were 8 condominium sales in Venice in the last quarter of 2018. This was the same number of sales from the last quarter of 2017. The average and median sales prices were $1,487,874 and $1,347,500, respectively, representing decreases of 1.2% and 7.9% year over year. The average price per square foot, however, increased by 3.5% to $939. The combined annual average growth in sales prices over the last ten years for condominiums in Venice equals approximately 7.6%.

Venice Beach - 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 $1,487,874 $939 $1,347,500 8 40 94.2% 15 2018 $1,588,854 $956 $1,525,000 31

Venice Beach - Condominiums 10 Year Performance

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Sales 41 36 33 37 59 40 41 41 36 31 CAAG

Average Sales Price $823,505 $1,020,793 $827,256 $918,778 $1,148,051 $1,144,232 $1,345,170 $1,373,480 $1,449,000 $1,588,854 7.6%

Price/SF % Change $522 N/A $568 8.8% $511 -10.0% $543 6.3% $652 20.0% $750 15.1% $775 3.2% $888 14.6% $896 0.9% $956 6.7%

YoY% -1.2% 3.5% -7.9% 0.0% -39.4% -6.2% 0.0% YoY% 9.7% 6.7% 8.7% -13.9%

Q4-17 $1,506,375 $907 $1,462,500 8 66 100.4% 15 2017 $1,449,000 $896 $1,402,500 36

QoQ% -14.1% -10.7% -27.0% 0.0% -39.4% -4.7% -11.8%

Q3-18 $1,731,875 $1,051 $1,847,000 8 66 98.8% 17

Venice Beach - Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000

70 60 50 40 30 20 10

Average Sales Price

Venice - Condominiums There are only a few one-bedroom condominiums in Venice - some of which are large art lofts. This year, only 3 have sold with an average size of 1,061 sf and an average sales price of $1,100,000. The size of two-bedroom units in Venice varies greatly from just under 1,000 sf up to 2,000 sf. Eighteen two-bedroom units were sold with an average sales price of $1,473,388 and a price per square foot of $959. There were also six three-bedroom units sold, which are larger townhomes with an average living size of 2,040 sf. They sold on average for $916 per square foot and an average sales price of $1,871,583. Overall, there are far less condominium units available than single family residences in Venice. According to an analysis of housing data conducted for The Wall Street Journal in Summer 2017. Venice lost a great number of housing units due to new homeowners buying adjacent properties and combining them into one or turning multiunit buildings into a single family property. Venice Beach - Condominiums - 2018 Bedroom 1 2 3

Number of Sales 3 18 6

Average Average Sales Price SF 1,061 $1,100,000 1,526 $1,473,388 2,040 $1,871,583

Average Price/SF $1,049 $959 $916

Venice - West of Lincoln

The area West of Lincoln features sandy beaches, the boardwalk, and the canals, and is often considered the ‘proper’ Venice Beach. The white sandy beaches of Venice face the Pacific Ocean to the southwest and run along a 1.5 mile stretch that is well-protected within the Santa Monica Bay. At the south end of the stretch, there are some remarkable residential beach properties. Further north, the beach-front becomes predominantly commercial with small shops, bars, and street artists showcasing their work. The area is known as the Venice Boardwalk and is recognized as one of Southern California’s largest tourist attractions. The very northern end of Venice, just before the border of Santa Monica, is mostly residential. The beach area attracts a young and young-at-heart group who enjoy the beach and all kinds of activities including jogging, roller blading, biking, etc. and socializing with neighbors while walking their dogs, or just sunbathing out on the sand. The area has become known as “Silicon Beach” due to many tech-focused businesses moving into the area. The neighborhood is filled with charming walk and drive streets with many original homes that were built in the early 1900’s, some of which have been beautifully restored. A few very contemporary units can be found as well. Closer to the beach are many small multi-family dwellings, most two to three units with a few new contemporary architectural homes scattered throughout. Towards the north end of the beach some buildings have 20 or more units; most of which have no parking. There is very little vacant land remaining; the emphasis is on restoring and enlarging existing homes and, to some degree, tearing down the old to make way for new. Prices for residential properties West of Lincoln start at $1,400,000. Larger homes and units sell from $2,000,000 and up to over $7 million.

West of Lincoln - Single Family Residences There were 27 single family home sales West of Lincoln in the fourth quarter of 2018. While the average sales price decreased by 5.6% to $2,044,821 from the same quarter in 2017, the median sales price dropped by 10.4% to $1,775,000. The average price per square foot was $1,445 representing an increase of 10.2% year over year. The combined annual average growth in sales prices over the last ten years in the West of Lincoln neighborhood equals approximately 6.8%.

West of Lincoln - Single Family Q4 2018

Q4-18 $2,044,821 $1,445 $1,775,000 27 56 97.4% 50 2018 $2,335,055 $1,445 $2,200,000 124

YoY% -5.6% 10.2% -10.4% -25.0% 1.8% 0.7% 25.0% YoY% 0.1% 12.0% 10.7% -6.8%

West of Lincoln - Single Family 10 Year Performance

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number Average Sales of Sales Price 78 $1,293,566 114 $1,231,071 136 $1,245,995 161 $1,434,796 157 $1,690,805 149 $1,948,671 132 $2,187,708 141 $2,287,158 133 $2,331,629 124 $2,335,055 CAAG 6.8%

% Price/SF Change $701 N/A $664 -5.3% $705 6.3% $749 6.3% $933 24.5% $1,103 18.2% $1,194 8.2% $1,284 7.6% $1,291 0.5% $1,445 11.9%

Median Price $1,054,000 $1,087,500 $1,045,000 $1,200,000 $1,495,000 $1,650,000 $1,950,000 $1,900,000 $1,988,000 $2,200,000

Q4-17 $2,165,000 $1,312 $1,980,000 36 55 96.8% 40 2017 $2,331,629 $1,291 $1,988,000 133

QoQ% -18.4% -7.0% -21.1% -30.8% -13.8% -1.2% -23.1%

Q3-18 $2,504,927 $1,554 $2,250,000 39 65 98.6% 65

Venice Beach SFR - West of Lincoln 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,500,000 $2,250,000 $2,000,000

170 150 130

$1,750,000 $1,500,000 $1,250,000 $1,000,000

110 90 70

Average Sales Price Number of Sales

Venice - East of Lincoln

The eastern section of Venice stretches from Lincoln Boulevard to Walgrove Avenue. Along the northern border of this neighborhood are Penmar Park and Golf Course, as well as the Santa Monica Municipal Airport, separating Venice from Santa Monica. The neighborhood is mostly residential; the only commercial strip is along Lincoln Boulevard and the golf course. Almost all properties are single family homes and are strongly owner-occupied. Lot sizes are larger than those in the West of Lincoln neighborhood. 1920â€™s California and Spanish bungalows, postwar bungalows and 50â€™s ranch-style homes are very characteristic for this neighborhood. Recently, this neighborhood has been experiencing significant remodeling projects, additions and new construction. Homes sell from about $1,000,000 to well over $4,000,000. The highest sale of the first quarter of 2018 in Venice was a brand new construction home on Appleton Way that sold for $6 million in March.

East of Lincoln - Single Family Residences There were 21 single family homes sold East of Lincoln in the fourth quarter of 2018. Average and median sales prices were $2,332,423 and $2,300,000, respectively, representing a growth of 16.7% and 24% year over year. The average price per square foot decreased by 18.7% year over year to $965. The combined annual average growth in sales prices over the last ten years in the East of Lincoln neighborhood equals approximately 11.6%.

East of Lincoln - Single Family Q4 2018

Q4-18 $2,332,423 $965 $2,300,000 21 46 96.5% 24 2018 $2,284,959 $1,081 $2,000,000 71

YoY% 16.7% -18.7% 24.0% 31.3% 53.3% -2.8% -20.0% YoY% 6.0% -2.0% 5.5% -2.7%

East of Lincoln - Single Family 10 Year Performance 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number Average Sales of Sales Price 44 $847,716 41 $890,697 52 $870,779 58 $942,534 66 $1,184,816 60 $1,568,211 65 $1,528,877 65 $1,860,018 73 $2,156,394 71 $2,284,959 CAAG 11.6%

Median Price/SF % Change Price $565 N/A $767,500 $564 -0.2% $780,800 $488 -13.4% $745,250 $585 19.7% $850,000 $688 17.7% $1,132,500 $838 21.9% $1,310,000 $975 16.3% $1,390,000 $1,024 5.0% $1,700,000 $1,103 7.7% $1,895,800 $1,081 -2.0% $2,000,000

Q4-17 $1,998,718 $1,186 $1,855,000 16 30 99.3% 30 2017 $2,156,394 $1,103 $1,895,800 73

QoQ% 9.5% -13.4% 20.4% 40.0% -4.2% -3.9% -31.4%

Q3-18 $2,129,466 $1,114 $1,910,000 15 48 100.4% 35

Venice Beach SFR - East of Lincoln 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,200,000 $2,000,000

80 70

$1,800,000 $1,600,000

$1,400,000

$1,200,000 $1,000,000 $800,000

40 30

Average Sales Price Number of Sales

Marina del Rey

Marina del Rey is a seaside neighborhood of Los Angeles just south of Venice and North of Playa del Rey and Playa Vista. It is home to the largest constructed harbor for small yachts in the world, with room for over 5,000 boats. The construction project, which began in the early 50s, was funded and planned by the federal government, Los Angeles County, and private developers. It is the largest man-made marina and an engineering sensation. The harbor is the heart of the community and is surrounded by several high-rise condominium buildings. The little-known neighborhood of the Marina Peninsula is located South of Washington Boulevard and West of Pacific, a one-mile stretch of properties comprised of quaint, walkable streets and beach-front homes, and is the most coveted location in Marina del Rey. The majority of real estate in the Marina are apartment and condominium projects. A few single family residences can be found at the beachfront, in the Oxford Triangle, as well as east of Lincoln towards the Culver City neighborhood. Prices for a beachfront home can go up to over $10,000,000, while prices for single family residences further east start around $1 million. Depending on the size, prices for condominiums start around $700,000 and can go up to over $5,000,000.

Marina del Rey - Single Family Residences There were 37 single family home sales in Marina del Rey in the fourth quarter of 2018. The average price per square foot equaled $893, representing an increase of 4% year over year. The average sales price experienced a decrease of 21.5% to $1,667,563, and the median sales price also dropped by 32.5% to $1,535,000 year over year. The combined annual average growth in sales prices over the last ten years in the Marina del Rey neighborhood equals approximately 3.1%.

Marina del Rey - Single Family Q4 2018

Q4-18 $1,667,563 $893 $1,535,000 37 50 96.3% 40 2018 $1,622,584 $913 $1,377,500 144

YoY% -21.5% 4.0% -32.5% 48.0% -2.0% -2.4% 53.8% YoY% -10.2% 8.3% -1.6% 61.8%

Marina del Rey - Single Family 10 Year Performance

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Sales

Average Sales Price

28 43 37 50 49 55 50 62 89 144 CAAG

$1,231,902 $1,479,348 $1,197,907 $1,480,830 $1,598,255 $1,624,070 $1,816,705 $1,586,758 $1,806,615 $1,622,584 3.1%

Price/SF

% Change

Median

$481 $528 $494 $531 $595 $649 $755 $823 $843 $913

N/A 9.7% -6.4% 7.5% 11.9% 9.2% 16.3% 9.0% 2.4% 8.3%

$1,212,500 $1,550,000 $990,000 $1,447,500 $1,650,000 $1,370,000 $1,465,500 $1,165,000 $1,400,000 $1,377,500

Q4-17 $2,124,370 $859 $2,275,000 25 51 98.7% 26 2017 $1,806,615 $843 $1,400,000 89

QoQ% 5.6% -8.7% 8.9% 105.6% 51.5% -1.4% -7.0%

Q3-18 $1,578,694 $978 $1,410,000 18 33 97.7% 43

Marina del Rey - Single Family 10 YEAR VOLUME AND AVERAGE SALES PRICE $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000

170 150 130 110 90 70 50 30 10

Average Sales Price

Marina del Rey - Condominiums There were 60 condo sales in Marina del Rey in the fourth quarter of 2018. The average sales price equaled $1,026,648, an increase of 1.8% from the same quarter in 2017. The median sales price increased by 3% to $953,000. The average price per square foot also grew by 3.5% to $708 from the same period last year. In 2018, the highest demand was for two-bedroom condos with 227 units sold. The average size of a two-bedroom condo is about 1,538 sf with an average sales price of $1,017,226. One-bedroom units have an average size of 960 sf and sold on average for $652,188. Three-bedroom units sold on average for $1,275,277 with an average size of 1,930 sf. The combined annual average growth in sales prices over the last ten years for condominiums in the Marina del Rey neighborhood equals approximately 6.9%.

Marina del Rey - Condominiums - 2018 Bedroom 1 2 3

Number of Sales 55 227 69

Marina del Rey - Condominiums Q4 2018

Q4-18 $1,026,648 $708 $953,000 60 48 98.7% 87 2018 $1,117,352 $730 $996,500 284

YoY% 1.8% 3.5% 3.0% -36.2% 14.3% 0.0% -11.2% YoY% 10.6% 9.5% 11.3% -19.3%

Marina del Rey - Condominiums 10 Year Performance Number Average Sales of Sales Price

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

241 290 258 304 326 353 306 312 352 284 CAGR

$614,375 $649,198 $677,385 $657,510 $792,711 $858,247 $970,014 $969,802 $1,010,269 $1,117,352 6.9%

Price/SF

% Change

Median

$414 $420 $410 $408 $512 $548 $601 $626 $667 $730

N/A 1.4% -2.4% -0.3% 25.5% 6.9% 9.7% 4.2% 6.5% 9.5%

$560,000 $592,500 $573,705 $583,750 $687,000 $750,000 $850,250 $860,000 $895,000 $996,500

Q4-17 $1,008,123 $684 $925,000 94 42 98.7% 98 2017 $1,010,269 $667 $895,000 352

Average Average SF Sales Price 960 $652,188 1,538 $1,017,226 1,930 $1,275,277

QoQ% -9.5% 0.0% -11.3% -25.9% 9.1% -0.4% -33.1%

Average Price/SF $686 $669 $646

Q3-18 $1,134,856 $730 $1,075,000 81 44 99.1% 130

Marina del Rey - Condominiums 10 YEAR VOLUME AND AVERAGE SALES PRICE $1,200,000

400

$1,100,000

350

$1,000,000 $900,000 $800,000 $700,000

300 250 200

$600,000

150

$500,000

100

Average Sales Price

Q4-2 Ave Ave Me Nu Da Sa Ne YearAve Ave Me Nu

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.