LAKE AUSTIN • WESTLAKE DOWNTOWN AREA LUXU RY H O M E E X P E RT TA RRY TOWN • OLD E NFLIE D • CLAR KESVI LLE • SO CO • T R AVI S HEI GHT S
Broker’s Opnion of Value 616 Oakland Ave, Austin, TX 78703 $1,900,000 - $1,950,000 $725 - $750 per sq ft
Broker's Opinion of Value Narrative 616 Oakland Ave. Austin, TX 78703 For a number of reasons 616 Oakland Ave is a challenging home to price evaluate for financial institutions. This is mostly because an inexperienced observer could easily be fooled by the older homes in the neighborhood. This beautiful contemporary home is designed by Austin's most famous contemporary design architect Dick Clark. The home has the same stunning features as many of Dick's 616 Oakland Ave. Austin, TX 78703 designs that sell for $1,200-$1400 per square foot in Westlake Hills, Austin, Texas.
Broker's Opinion of Value Narrative
For a number of reasons 616 Oakland Ave is a challenging home to price evaluate for financial One of Dick's signatures is designing homes on hilltops with large views of downtown Austin. Westlake institutions. This is mostly because an inexperienced observer could easily be fooled by the older homes Hills is approximately one half mile from downtown, so all of Dick's homes have magnificent half mile in the neighborhood. This beautiful contemporary home is designed by Austin's most famous views of downtown. contemporary design architect Dick Clark. The home has the same stunning features as many of Dick's designs that sell $1,200-$1400 square foot in Westlake Hills, Austin, Texas. 616 Oakland Avefor has Magnificent per Downtown Views from 15 blocks One of Dick'sproperty signatures is designing on hilltops with large views of downtown The subject at 616 Oakland homes Ave is only 15 blocks from downtown. It sits on aAustin. hill topWestlake and Hills is approximately one half mile from downtown, all of Dick's homes haverooms magnificent half mile therefore also has even better "magnificent" views of so downtown from multiple in this home. views of downtown. Without a skilled view of the neighborhood through the lens of a urban luxury home expert like myself, 616 Oakland has Magnificent Downtown Views that fromis15 blocks one might notAve understand the urban "gentrification" under way in this neighborhood. The subject property at 616 $750,000 neighborhood lot Oakland prices Ave is only 15 blocks from downtown. It sits on a hill top and therefore also has even better "magnificent" views of downtown from multiple rooms in this home. Currently in the neighborhood of 616 Oakland Ave the cheapest "tear down" home with a 50' wide X 75' Without skilled view ofthan the neighborhood the lens ofisa without urban luxury home expert like myself, deep lot asells for no less $500,000. Thatthrough is land cost. That a view of downtown. one might not understand the urban "gentrification" that is under way in this neighborhood. A 50 X 75 lot with a view of downtown sells for no less than $750,000. These lots only sell on the $750,000market" neighborhood lot hit prices "private and never the MLS. Therefore the vacant lot cost basis of 616 Oakland Ave is $750,000. That is why there are almost no new homes in this neighborhood. Currently in the neighborhood of 616 Oakland Ave the cheapest "tear down" home with a 50' wide X 75' deep sells no less thanLot $500,000. ThatAiskey land cost. value That is without a view of downtown. Bonuslot City of for Austin Vacant Next Door: added A key 50 Xadded 75 lotvalue with abonus view to of this downtown for no lesscontiguous than $750,000. onlylotsell on the propertysells is that it sits to a 45These X 75 lots vacant owned by the "private and never hit the MLS. Therefore vacant lot costThat basis of 616that Oakland Ave is has city that market" is considered permanently unbuildable by the city of Austin. means this property $750,000. Thatmanicured is why there are almost nodoor new that homes neighborhood. a permanently vacant lot next caninbethis treated as a side yard. This is a unique but everlasting bonus to this property that cannot be overlooked or underestimated. The bonus city of Bonus City of Austin Vacant Lot Next Door: A key added value Austin lot makes this combined property one of the largest in the neighborhood. If the city of Austin lot was withto616 the ittotal combined land would belot $1,200,000. A keylegally addedcombined value bonus thisOakland propertyAve, is that sits contiguous to a value 45 X 75 vacant owned by the city that is considered permanently unbuildable by the city of Austin. That means that this property has a permanently manicured vacant lot next door that can be treated as a side yard. This is a unique but everlasting bonus to this property that cannot be overlooked or underestimated. The bonus city of Austin lot makes this combined property one of the largest in the neighborhood. If the city of Austin lot was legally combined with 616 Oakland Ave, the total combined land value would be $1,200,000.
How to create a price per square foot value for this property It's not completely fair to value this unique Dick Clark contemporary in the same category as the Dick Clark contemporaries in the affluent suburb of Westlake Hills. The Westlake Hills lots are huge (30,00040,000 sq ft). 616 Oakland Ave sits on 3,750 sf of land. But, on balance, 616 Oakland Ave is only 15 blocks from downtown; not a half mile and across the highway. 616 Oakland Ave compares well with downtown high rise condos The truth is that 616 Oakland Ave is better compared to the downtown high rise condo units selling in the similar square footage. Many condo purchases are discovering that managing dogs and cats from a high rise condo is extremely tedious, often precarious, and definitely time consuming. Disconcerted condo buyers are starting to look for an urban home solution with a yard for their dogs. Currently this property is the sole contemporary candidate for purchase by this growing category of buyers. Unfortunately, 616 Oakland Ave has not had the benefit of a top producer, Elite 25 member, associated with a true international Real Estate company, to promote it and give credibility to it to the elite urban buyers of downtown Austin. This will now change and the property should sell in the $1,900,000 range within 120-180 days maximum. Attached is a spread sheet with 8 high rise condo sales and these contemporary home sales from the 78703 neighborhood. All three contemporary solds, 2003 Stanford (542 psf), 2200 Matthews ($693 psf), and 2000 Meadow Brook Drive (Tarrytown $709 psf) have zero downtown views. Therefore, $542-$709 psf was appropriate. The downtown view is where all the value premium lies. $725-$750 psf should be readily accomplishable.
Thank you,
Joe Longton
Feb 8, 2016
Joe Longton 512.633.5186 joe.longton@sothebysrealty.com 2015 Sales: $27,500,000