Oh Snap — the millionaires are coming

Real estate players are giddy for Snapchat's IPO

Feb.February 21, 2017 08:45 AM
Illuminated Venice sign at Venice Beach (Credit: Getty)

Snapchat is about to become every West L.A. realtor’s favorite app.

The upcoming IPO of Snap, the parent company of the popular messaging app, is slated to mint a new group of L.A. tech millionaires, which could mean big business for real estate agents.

“The real estate guys are pumped because the first thing people usually buy is a house, or a dream home,” Beverly Hills-based wealth manager Blaine Lourd told the New York Times.

Snap, which is based in Venice, has already changed the landscape of Silicon-beach adjacent neighborhoods. Property values in Venice grew 13 percent over the past year according to Trulia. The average price per square foot for a property in the neighborhood is $1,257 — that’s higher than that of the Mission District in San Francisco.

Valued at about $20 billion, Snap will aim to sell its stock for about $14 to $16 a share, the company recently announced.

Real estate agents and others trying to capitalize on Snap’s IPO have already bought targeted search and Facebook ads, pushing homes to Snap employees, according to the Times.

Lee LeGrande, a real estate agent that specializes in Manhattan Beach and Hermosa Beach, said he’s even building some luxury beach homes in anticipation of new influx of wealth.

“When Snap goes public, I hope people see these towns are hard to beat for proximity to LAX and the clean beach,” he said.

Snapchat already leases about 200,000 square feet in Silicon Beach, but is also in talks to lease up to 400,000 square feet at Santa Monica Business Park, The Real Deal reported in November. [NYT]Cathaleen Chen

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