The coastline of Malibu, CA, along the Pacific Coast Highway is undergoing a complete transformation after the January wildfires ripped through miles of beachfront homes, reducing many to ash.
Now, a foreign investor has been secretly scooping up many of the burned lots on the oceanfront side of the PCH-with the vision of rebuilding the mansions that dotted the coastline in the iconic beach town.
"Once this beach is built back and it's all brand-new construction, I think it's going to be a very desirable spot for a lot of wealthy people to try to buy a beach house," Weston Littlefield with the Weston James Group tells Realtor.com®.
Littlefield is confident this investment will be a success-with time and patience.
"Malibu was such a charming beach town, and all the homes that were on La Costa Beach had so much character. They've been there for years on years, and you could just tell, all the fun parties that people used to have and for it all to just be gone and wiped out, down to the sand, is heartbreaking," he says.
The luxury real estate agent and his colleague Alex Howe have been working with the investor who has, so far, purchased nine lots worth more than $65 million-but the process isn't random.
Currently, there are dozens of empty properties listed for sale on Realtor.com-all along the beach-but this investor wanted a common characteristic among the properties.
"He started building a team on his end of expediters, architects, and kind of figured out what the best size lots and frontage would be to build on to eventually resell," explains Littlefield. "And based on their formula, we were only acquiring lots that were 40-plus feet of frontage."
Littlefield started researching all of the beachfront properties along the PCH. What he found was that the burned lots that would be desirable for his client were not for sale. So, he tracked down the owners and approached them to see if they would consider selling.
"I'd say probably about 50% had sentimental value to their properties just based on memories, or their parents passed it down to them, which was a very tough subject to get across with them," says Littlefield about some of his conversations with potential sellers.
"But a lot of them, ultimately, just didn't want to go through the rebuilding process because of how long they knew it was going to take to really come back."
Rebuilding Malibu
Rebuilding Malibu will be years in the making. The city's site, Malibu Rebuilds, states it anticipates a 12- to 24-month timeline for permits to be approved. Recognizing this, the Malibu Rebuild Center has been established to help residents navigate the tedious process-offering in-person and online support.
The city says the fire destroyed 720 structures in Malibu alone. New laws and ordinances have been put in place, but it's a slow process with a finish that's not immediately within reach.
Coastal properties have significantly higher fees and a long checklist for rebuilding permits, compared with rebuilding noncoastal homes.
For starters, an $11,579 base planning fee is required, not including any fees for site reviews, modifications, and variances, according to Malibu Rebuilds.
Littlefield's client requested a specific minimum lot size because any newly built homes are required to be constructed according to the original square footage of the home that once stood on that parcel of land, but new laws are allowing for an additional 10% square footage.
New beachfront properties must meet FEMA's flood plain requirements. Existing seawalls must be replaced unless a licensed engineer can certify they are compliant, and timber piles are no longer allowed.
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In addition, for narrow parcels along La Costa Beach, view restrictions are in place. Plus, most new construction is not allowed to have septic systems; rather, they will require an Advanced Onsite Wastewater Treatment System.
Once all the necessary agencies and departments approve rebuilding plans, a hearing date for the public discussion of the planning staff's recommendations or decision will be scheduled.
Developer's dream
The foreign investor, whose identity has not been disclosed, knows his vision of a new Malibu will take years. But Littlefield explains his client is pleased with the prime real estate he's purchased.
"They're not a big developer-that's not what these guys do. They actually have true intentions to really make Malibu great again. And they're taking a very huge risk," explains Littlefield. "I think we've spent almost $100 million on land, and Malibu is extremely unpredictable"
Littlefield's client purchased eight beachfront properties along La Costa Beach and one property on Carbon Beach, also known as "Billionaires Beach."
"You have Rick Caruso, who owns a lot on La Costa. Candy Spelling owns a lot on La Costa. was along La Costa," says Littlefield.
"Once this stretch is rebuilt, it will be the only beach in one of the most famous places in the world with entirely brand-new beachfront homes," says Littlefield. "That kind of rarity just doesn't exist anywhere else in the United States."
The largest lot Littlefield acquired is 90 feet wide, which was purchased for $13.8 million. Another property, an 80-foot-wide lot that once had an in-ground pool, was bought for $12.8 million.
"He can technically rebuild that pool, which is extremely rare to have a beachfront house with a full-size pool," explains Littlefield.
Other purchased properties vary in size from 63 feet to the minimum 40-foot-wide lot the developer was looking for.
"That makes a huge difference if they're rebuilding a house and they want to hit a certain number for them to sell a $25 million house."
The investor doesn't anticipate breaking ground for at least 18 more months as the team gathers all the necessary permits.
"This will be one of the hottest spots in the country for the ultrawealthy, a once-in-a-lifetime chance to own a brand-new home right on the sand in Malibu," says Littlefield.
A 10th lot, under escrow, will soon be part of this Malibu portfolio.
"There's nowhere else in America where you're going to find an entire beachfront lined with all-new construction, in a market as prestigious and world-renowned as Malibu. That's what makes this opportunity unmatched."
The post EXCLUSIVE: Foreign Investor Secretly Snaps Up $65 Million in Iconic Malibu Real Estate Destroyed by Wildfires appeared first on Real Estate News & Insights | realtor.com®.
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