The Los Angeles condo market has set a new high-water mark for 2022.
An undisclosed buyer is paying $21.5 million for a penthouse at the Pendry Residences West Hollywood, a project developed by AECOM Capital and Combined Properties. The deal for the 6,300-square-foot unit, which also features about 2,800 square feet of private outdoor space, looks to be the most expensive condo sale of the year so far.
The project at 8420 Sunset Boulevard, which is managed by Montage Hotels & Resorts, has scored other pricey deals over the past year. Last August, a buyer paid $13 million for a condo spanning just under 2,700 square feet, in a deal that set a price-per-square foot record for L.A. County, at $4,848 a foot. At the time, another condo at the unit sold for $13.3 million, or about $4,500 per square foot.
The new $21.5 million deal, which pencils out to just over $3,400 per square foot, puts the project over the $100 million sales threshold, and means that nearly half its 40 condos have been sold. The residences are adjacent to a 149-key Pendry Hotel, where amenities include Wolfgang Puck’s Merois restaurant and The Britely, a social club.
“Since the penthouse is a design-ready, cold shell sale, it’s up to the buyer to determine” the number of bedrooms and bathrooms, said a representative for PowerPlay, which is marketing the project. PowerPlay’s Taaseen Qureshi represented Pendry in the deal, while the Hobin Company’s Molly Hobin Williams represented the buyer, whose name wasn’t disclosed.
Last May, AECOM and Combined scored a $505 million loan package for the boutique hotel and condo complex, financing that retired an earlier $205 million construction loan from Bank OZK.
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Montage planned to launch sales at the project in 2020, but held off a year because of the pandemic. The hotel portion of the project opened in April 2021, and residences were rolled out in batches.
The sale is also a validation for Los Angeles’ luxury condo market, which set its current record in 2010, when Candy Spelling bought a $35 million two-floor penthouse at the Century, a high-rise in Century City. That project also saw a $21.6 million deal last year, when an undisclosed buyer bought Matthew Perry’s full-floor penthouse.
The average sales price of an L.A. luxury condo in the first quarter was $3.7 million, up 29 percent year-over-year, according to Douglas Elliman’s market report. A number of big players, such as Beny Alagem and Michael Shvo, have launched projects that they hope will push that number up even higher.