A Palisades Ocean View Lot Just Traded for $188/SF- Why I Like It
The Palisades Ocean View land closes at $2.1M, and the buyer can build a 4,584 SF Home.
At a glance
closed Jul 6, 2026
initial ask
4.5% under ask
on 2,174 SF existing
on 11,197 SF lot
per slope analysis, LAR1
land cost only
Feb 2022, same parcel
$1.2M below 2022 trade
0.257 acres, LAR1
renovated 1959
Compass listing
What matters
- This was a Fast Trade. Closed $100K under a $2.2M ask — 4.5% off. That spread reads like demand, not desperation. This tells me market has already repriced Palisades dirt and found a floor. Buyers competing at this level are underwriting.
- The builder is buying the View. I see some homes are selling around $1,200 per SF without views andI have seen comps around $1,800/SF for views. If I build a home in the Palisades its going to be one with an ocean view.
- The buildable number is around 5000 SF. Estimating about 4,584 SF without any added bonus. At a $2.1M land cost that's ~$458 per buildable foot.
- The completed reports will save some time. Phase I and Phase II environmental, plus soil and geotech studies, saves the builder 3-4 months. It also saves on another line item to what it costs to build it and, removes more risk.
What an Operator Sees
At about $458 per buildable square foot, the buyer is starting with numbers that make me want to dig deeper. Add in the fact that the seller already completed the geotechnical and environmental work, and you've saved both time and risk.
My estimate is that a disciplined builder could be all-in somewhere around $5 million to $6 million, depending on the level of finishes, financing costs, and how quickly they can deliver the project. If that's the case, the economics become interesting when comparable new homes are selling around $1,200 per square foot without ocean views and premium ocean-view homes are reaching closer to $1,800 per square foot.
The next 18 months are going to tell us a lot. As the first wave of rebuilt homes comes to market, we'll find out what buyers are actually willing to pay for these locations. I'll be tracking every sale to see what trades next.
I track every Palisades real estate sale in Los Angeles so you don't have to.
If you found this useful, share it.
OMs: David@AtlasBrief.LA
DM me at: https://www.linkedin.com/in/david-safai/
Atlas Palisades Rebuild Guide — A free resource connecting Pacific Palisades owners with builders, architects, engineers, subcontractors, suppliers, and rebuilding resources.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
Know one other LA owner who'd want this deal? Forward this — reply with their email and I'll add them.
Property and transaction data: CoStar Research.
Write to David Safai at David@AtlasBrief.La
Appeared in the Sept. 6, 2026 edition of The Tape.