A pair of homes at The Strand at Headlands in Dana Point traded hands earlier this month in separate deals totaling $30.4 million, with both properties selling at notable premiums over their prior sales.
In the larger of the two deals, 17 Coral Cove Way sold for nearly $16 million, up nearly 33% from its 2021 sale price. The 7,843-square-foot home was built in 2020.
“I originally sold the lot to the developers, and I sold it about two and a half years ago as new construction,” Compass’ Arlen Raubach, who represented the buyers in the recent deal, told the Business Journal.
“It’s one of the best locations in the upper Strand, and the new price gives an indication of the home’s appreciation.”
In the latter deal, a 5,083-square-foot home built in 2019 at 15 Shoreline Drive sold for about $14.5 million, up nearly 49% from its prior sale in 2020.
The 2020 deal marked a price record at the time for the upper level of The Strand, and the recent sale, which works out to a roughly $2,850 per-square-foot price, also marked a Multiple Listing Service price record on a per-square-foot basis for the entire community.
“Though buyers have been moving slower, the prices are not coming down,” said John Stanaland of Douglas Elliman, who had the listing for 15 Shoreline. “Unlike some other markets, the value of Orange County is holding its own.”
High Price Tags
An ongoing lack of inventory, particularly of high-end coastal homes, has buoyed pricing in the county despite interest rate increases and waning consumer confidence, according to Raubach.
“Buyers are sharpening their pencils and we aren’t seeing the huge overbids anymore,” Raubach said. “The purchases we are seeing are coming from necessity, rather than buyers making a fun purchase.”
In the case of 15 Shoreline, the buyers came from Laguna Beach, while the seller is originally from New York, sources indicate.
Raubach is seeing a pickup in demand from buyers from Los Angeles and China in The Strand, the Sanford Edward luxury gated community that kicked off in 2006.
Edward has sold all of the lots at the development, with very few vacant lots remaining.
There are more than 40 homes under construction at the 121-acre development site, and about eight homes for sale, with asking prices ranging from $12.5 million for a 5,951-square-foot home built in 2015 to $55 million for a front-row estate spanning 9,630 square feet.
Raubach has the $55 million listing for 7 Strand Beach Drive, which delivered in 2018 as “one of the most expensive build projects” in the area.
“It’s solid steel construction with very high-end engineering,” Raubach said, adding the foundation of the home is the same level of quality as a state bridge. “When we had that 7.1-magnitude earthquake, the home didn’t have any settlement cracks, which is a normal occurrence for standard homes following an earthquake.”
The pricing is justified from the high pricing for vacant lots and the cost of construction, Raubach said.
Earlier this year, a 10,502-square-foot vacant site on the front row of The Strand sold for nearly $17.8 million, breaking the record for the priciest home lot sale, while construction pricing for high-end homes is nearing $3,000 per square foot.
“I haven’t heard anyone argue with the pricing of the home once they walk through it,” Raubach said.
Surterre Properties’ Jacqueline Thompson has the second priciest home listing in The Strand at 51 Strand Beach Drive, a 9,842-square-foot, front-row estate that hit the market for the first time for $36 million. The home was built in 2013 on the north end of the community.
“The Strand is highly desirable, and scarcity value is also coming into play,” Stanaland said.