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.