However they made a loss on the sale. Here’s what Navneet said:
This project was extremely challenging because the narrow lot widths and two big basements presented unique challenges throughout the entire construction period. Hence the project took 6 months longer to complete and we also incurred significantly higher construction cost.
At the same time, sales price was towards the bottom of the range of our projections. The sales price was towards the lower end of our projections because we under-estimated the desirability of the homes with detached garages, narrow lots, small backyards and smaller master suites.
So you can lose money in Bay Area real estate, even if you were a pro with deep pockets.
18641 Cynthia Ave Cupertino listed on Jul 19 is still on the market even after dropping $300k. May be because of small lot size of 6840 and narrow frontage.
I meant 901/903 Loyola. It was a double lot. The exit
value was 7.46M. Costs had to be ~5M. Roughly 9k finished sqft. That’s right in range of 500/sqft.
PA vs LA, PA is more expensive. You get less for your money. LA doesn’t lead the market. To get a nice and wide 10k sqft lot in PA is much more than the ~3M it costs in LA. You can get a narrow one for 3.9 (555 Chaucer) or this one for 3.4 (must have a shared easement) https://www.redfin.com/CA/Palo-Alto/1052-Fife-Ave-94301/home/1290192.