The Pendry West Hollywood is shattering sales records in Los Angeles, with a 2,681 square foot condominium recently selling for $13 million ($4,848 per square foot). This news made headlines in the real estate world, including the article below that was published in the LA Times.
The pandemic put a damper on high-rise living as a highly infectious airborne virus made close proximity to neighbors suddenly unappealing. But the condo market has come roaring back, particularly at the high end.
At the Pendry Residences West Hollywood, a 2,681 square foot condominium overlooking the Sunset Strip just sold for $13 million. That’s the highest price per square foot – $4,848 – in the history of L.A. condo sales, clobbering the previous record of $3,858 according to the Multiple Listing Service.
Another slightly larger unit in the same building closed last week for under $13.3 million, or just under $4,500 per square foot. Both sales rank among the priciest condo deals in recent years, highlighting the growing demand for luxury vertical living after the pandemic pushed buyers in search of space and privacy toward single-family homes.
The condos are two of 40 that will trickle to market over the next year at Pendry Residences West Hollywood, a new hotel-condo hybrid opened by Montage Hotels & Resorts. The $500 million complex built on the former site of the House of Blues is one of multiple projects coming to the Sunset Strip as developers look to lure buyers into luxury condos loaded with high-end amenities.
Overall sales of Los Angeles condominiums—whether in towers or low-rise developments—jumped to 974 in the second quarter, Douglas Elliman data show, the most in the 17 years the real estate firm has been tracking transactions. That’s up 132% from the 420 sales closed in the year-earlier quarter as COVID-19 protections squelched economic activity.
The luxury condo segment saw sales leap 138% year over year.
Condo prices rose as well, although not at the torrid pace seen in Southern California’s single-family home market, where bidding wars dominate and prices set fresh records every month.
The median Los Angeles condo price reached $966,000 in the second quarter, up 9% from the first quarter and a nearly 7% improvement from a year earlier, according to Douglas Elliman.
The median price in the luxury condo market was $2.6 million, rising 16% from the first quarter and 19% from the year-earlier quarter. The median is the point at which half of the properties sold for more and half for less.
“Condo living is a newer concept for L.A. We’re a culture of swimming pools and backyards,” said Jim Jacobson, the senior vice president for Douglas Elliman’s development marketing. “But now that people can tour the units in person again, they’re buying everything.”
Interest in all the developments he’s working on has jumped over the last few months, both in terms of in-person tours and online traffic, he said. International buyers, typically a 20% to 30% chunk of the luxury condo market, dried up during the pandemic because they were unable to travel here, but those buyers are now returning, along with locals simply looking to treat themselves, he said.
“People sat inside and watched TV for a year, and now they’re looking to indulge. They no longer just want four walls and a roof. They want something special—a known architect, a known chef or restaurant,” Jacobson said.
Read the full article here.