Oh Snap — the millionaires are coming

Los Angeles /
Feb.February 21, 2017 08:45 AM

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


Related Articles

arrow_forward_ios
606-654 Venice Boulevard (Silver Creek, Google Maps)
Snap-leased office complex in Venice snags refi
Snap-leased office complex in Venice snags refi
Stay Open CEO Steve Shpilsky and a rendering of the project (Linkedin, Stay Open)
Poddy time: Venice-based pod hotel startup leases first space
Poddy time: Venice-based pod hotel startup leases first space
AvalonBay Communities CEO Timothy J. Naughton, TA Realty Managing Partner James O. Buckingham, and Avalon Venice
TA Realty pays $65M for luxury Venice apartment complex
TA Realty pays $65M for luxury Venice apartment complex
Councilmember Mike Bonin and the Ellison (Credit: Google Maps)
Venice landlord says city is using the coronavirus pandemic to settle a score
Venice landlord says city is using the coronavirus pandemic to settle a score
NeueHouse is preparing to open Venice co-working space
NeueHouse is preparing to open Venice co-working space
NeueHouse is preparing to open Venice co-working space
Four of the top residential listings this week
Here are the priciest resi listings in LA County last week
Here are the priciest resi listings in LA County last week
1600 E. Venice Boulevard (Credit: iStock)
Prolific developer Wiseman Residential eyes another resi complex in hot Venice
Prolific developer Wiseman Residential eyes another resi complex in hot Venice
Airbnb's Brian Chesky and Mike Bonin, LA city councilman for Venice
LA’s new Airbnb rules may price out some short-term renters in beach towns
LA’s new Airbnb rules may price out some short-term renters in beach towns
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...