Are there any best kept secrets in Peninsula real estate anymore? I think not! But with a little vision, we can determine the neighborhoods that are poised for price appreciation, more new construction development, and escalated price per sq. ft. Throughout the 1990s and early 2000s, no neighborhood epitomized a high-end new construction community (dare we say McMansion?!) like Burlingame's Easton Addition. Over the years, we watched the tear-down values there go from $950,000 to $1,300,000 to today's $1,500,000 - $1,600,000+, as local developers competed for a piece of the action to build into. But with tear-downs scarce and very expensive, perhaps we are seeing a leveling out of the Easton Addition new construction market. The approx. 3,000 ft. new construction seems to have stabilized at $2,750,000 - $2,850,000. We even have examples of newer and brand new homes, such as 1301 Drake listed at $2,799,000, that have lingered on the market. There is not a surge or imminence into a regular $3,000,000 price point in the Easton Addition yet.
On the contrary, moving "across the tracks" to the leafy environs of the Burligables/Oak Grove Manor/Lyon Hoag areas, we see a more untapped landscape of numerous tear-down/fixers still available, and a boost in desirability and clear trajectory into increased luxury price points. We need look only at the two most recent sales comps: 129 Clarendon (view photos) in Lyon Hoag recently sold for $2,150,000 (list $1,874,900) as a 4 bedroom remodel that was purchased as a fixer for $900,000 in February 2012. For this example, although a quality location and quality remodel, we need to keep in mind it was not the very best location of Burlingables/Lyon Hoag, nor was it new construction from the ground up. To reference ultimate Burlingables locations, last week saw the closing of 728 Lexington to an all-cash buyer after intense bidding. The "700 blocks" of streets such as Lexington, Concord, and Vernon are regarded as the premier locations of Burlingables due to their fine assemblage of architectural homes and tree-lined cul-de-sacs that back directly into Washington Park. 728 Lexington as a 2 bed/2 bath split-level fixer-upper of 1690 sq. ft. on a 5,000 sq. ft. lot listed for $1,198,000 and closed at $1,700,000. Split levels such as this are easily adapted into top floor master addition above kitchen/family bump-outs to the rear. While Burlingables/Lyon Hoag real estate of Burlingame is surely beyond a "best kept secret" at this point, it is now a benchmark of "where there is growth potential, there is opportunity and desirability."
Having twice represented the #1 sales in the Burlingables neighborhood, and representing a number of trophy properties (such as Marin Drive pictured above) and investment purchases, I know this market inside and out. Please contact me through my downtown Burlingame office for opportunities that may not yet be on the market. geoffrey@geoffreynelson.com (650) 455-3735