For SaleBroker Activity · Entry № 81

A Pacific Palisades Property Listed Under $1 Million—and It Went Under Contract Immediately

Why I'm keeping this Comp - A 7,202/SF lot at just $138/SF. The speed of the buyer response tells me something interesting.

PublishedJuly 2026
StatusFor Sale · Active
DatelineThe Tape · Marquez Knolls, Pacific Palisades
16851 W Sunset Blvd hero photo
FIG. 01, 16851 W Sunset Blvd, Pacific Palisades, CA 90272. Listing photo via Berkshire Hathaway HomeServices California Properties.
Four takeawaysFour things an operator sees at 16851 W Sunset Blvd.
  1. $138/SF on land. The sub-$1 million price brought buyers out immediately.  There are many Palisades lots sitting on the market. This one reportedly went under contract almost immediately.  At approximately $138 per land square foot, it was priced about 42% below the $239 median from the closed Palisades land sales I have saved. The market’s response suggests there is meaningful demand when the land price is low enough.
  2. Sunset Boulevard is the problem and possibly the opportunity.  The property fronts Sunset Boulevard, which means traffic, noise, access and resale will all be legitimate concerns. A great local broker, Max Marguleas, pointed out that this location could make the completed home harder to sell. I agree that it deserves a substantial discount compared with an interior street. But at a $995,000 land basis, the buyer may have enough room to build a smaller, well-designed home that enters the market around $3 million to $4 million.  I think this could be an interesting market where there are brand new entry level homes in the Palisades for 3-4M.  
  3.  Is new supply a threat or evidence of recovery? Max raised another important concern: hundreds of newly constructed homes could eventually come to market, creating competition for buyers. I see the other side.  When hundreds of homes are rebuilt, buyers may no longer be looking at a damaged or empty community. They will see new houses, active construction, returning families and a neighborhood visibly moving forward. The supply could pressure sellers. But it could also bring back confidence in the entire Palisades. 
  4. The Alphabet Streets may be providing the earliest market signal. According to Max, the Alphabet Streets are currently performing the best. He believes zoning and building-code conditions there are allowing some owners to rebuild more quickly, while pricing has started to rise. His read is that the market bottomed approximately six months ago and has recently been appreciating by roughly 1% to 2% per month. That is one broker’s real-time observation not yet a conclusion I would apply across the entire Palisadesbut it is exactly the type of local intelligence I want to track against future closings and share back.  
Deal Stats · 16851 W Sunset Blvd
List Price
$995,000
asking
Property Type
Vacant Land
residential lot
Lot SF
7,202 SF
60 ft × 120 ft, flat
Price / Lot SF
$138/SF
land basis
Gross SF (prior bldg)
2,590 SF
pre-fire structure
FAR (prior)
0.36
bldg SF ÷ lot SF
Year Built (prior)
1951
structure destroyed
Neighborhood
Marquez Knolls
Pacific Palisades, 90272
Walk Score
5.5
car-dependent
MLS
26853269
active listing

The Location

Marquez Knolls sits at the eastern inland edge of Pacific Palisades, a quiet residential enclave where Sunset Boulevard begins its final climb before dropping into the coastal flats. The Army Corps of Engineers completed phases 1 and 2 of debris removal. A professional boundary and topographic survey is done. The seller says architectural building plans are available upon request.

What an Operator Sees

I understand why this property went under contract immediately.

A flat Palisades lot with reported ocean views at $138 per land square foot gives the buyer room to work around the Sunset Boulevard location. 

The real investment thesis is not building another $10 million trophy home. It may be building a thoughtful $3 million to $4 million starter home for someone who wants new construction and access to the Palisades.

There a wave of new inventory coming. The question is what that supply represents.  

Some see hundreds of competing homes.

I see hundreds of rebuilt homes proving that the Pacific Palisades is coming back.

I’m tracking every Pacific Palisades land sale so you don’t have to.  If you found this useful, share it. 

This comp is going into the Atlas Brief Palisades database, where I’m tracking land prices, lot sizes, locations, views, construction activity, and buyer demand to understand how the rebuild market is evolving.

If you’re a broker, builder, architect, supplier, or contractor working in the Palisades, I’m also building a Palisades supplier database. Send me your information at David@AtlasBrief.LA.
If you are an owner and need a supplier data, email me.  

Brokers
Listing Broker
Jonathan Cates
Berkshire Hathaway HomeServices California Propert
Written from the field

David Safai, operator, developer, GC.

Atlas Home Builders, Inc. is a Los Angeles owner-operator and general contractor. If you are a broker with a listing you want an honest read on, send the OM and the T-12 to David@AtlasBrief.La.

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