Lack of Leadership in Fire Rebuild Chief Resident Concern

Who is in charge?

Residents impacted by January’s Palisades and Eaton fires have serious questions around whether those in leadership positions have the capacity to see the multi-year, mega rebuilding effort through to its conclusion.

A survey from the Urban Land Institute, UCLA Ziman Center for Real Estate and USC Lusk Center for Real Estate found lack of leadership to be the chief concern among residents impacted by the wildfires.

The survey, conducted by real estate consulting firm RCLCO, included 512 respondents contacted in March and April. Most of those surveyed, 456, were from the Pacific Palisades.

In the city of Los Angeles’ case, which has jurisdiction over the Palisades, next steps for the recovery are on murky ground.

A request for proposals went out in April for a three-year recovery contract with bids due May 9. The city said it’s currently evaluating firms’ proposals, but it remains unclear what timeline it’s working on to finalize a contract and move forward.

The winning bidder would be responsible for what the city described as “comprehensive recovery efforts,” which would include infrastructure, environmental impacts and reimbursements, according to the request for proposals landing page.

The city may have been listening to resident concerns with Mayor Karen Bass announcing Friday that global infrastructure consultant AECOM will now be tasked with assisting on a master plan for the long-term recovery.

Speculators creep into Altadena

Speculative developers have reportedly been on a tear in Altadena.

A Los Angeles Times report suggested developers make up the bulk of buyers for the 145 lots that have so far been sold in Altadena since the devastation of January’s Eaton Fire. The report is based on a review of property records, although it’s not an exact science with many buyers hidden behind limited liability companies.

Most of those Altadena lots went for between $500,000 and $700,000, according to the Times.

The sales count is far lower in the Pacific Palisades, where fewer than 60 lots have traded since the Palisades Fire.

Mercury Insurance CEO asserts commitment to California

Key to the rebuild has been the payout of insurance claims. That same L.A. fires rebuilding survey asserted insurance is the “foundation of financial planning for a rebuild.”

Residents expect some 70 percent to 75 percent of the average rebuilding costs to come from their insurance carriers, according to the survey. Financing the difference has left some homeowners in a bind, with some respondents saying they would be willing to give up customization on their homes or perhaps sell entirely if they fall short on the necessary funds to rebuild.

To that point, Mercury Insurance CEO Gabriel Tirador sought to quell concerns when he spoke at the Global Sustainable Insurance Summit in Long Beach last month to say his firm would continue to do business in Southern California. In fact, Tirador said Mercury wants to grow its homeowners and auto insurance policies in the state.

UCLA think tanks offers housing idea for vacant lots

The CityLab-UCLA think tank hatched hundreds of ideas for how roughly 24,000 empty lots could be used to help boost the city of Los Angeles’ inventory of starter homes.

The Small Lots, Big Impacts design competition offered several ideas for creating density on the privately owned lots, attracting 356 submissions from 36 countries.

The first stage of the two-phase competition solicited design ideas for projects of two to nine units that look like only one from the street.

The next stage of the competition is a request for qualifications from developers. The prize: the right to build housing on vacant lots owned by the city.

Coto de Caza manse enters market with $125M price tag

Orange County has a new entrant in the over-$100 million listing club.

Douglas Elliman’s Josh Altman and The Agency’s Mauricio Umansky listed the estate once owned by late real estate developer William Lyon for $125 million.

The 137-acre property at 24331 Coto de Caza Drive in Trabuco Canyon is the second-priciest listing in Orange County, according to Zillow records. It joined a 42-acre San Juan Capistrano estate at 31062 Casa Grande Drive, which is listed for $150 million, as the only on-market properties in the county asking over $100 million.

Retail CEO reduces price on Beverly Hills listing

Gary Friedman, CEO of upscale home furnishings retailer RH — formerly Restoration Hardware — re-listed his Beverly Hills mansion for $39.5 million.

The estate at 1500 Gilcrest Drive, known as “The Promontory,” had previously been priced at nearly $45 million, when it hit the market in 2023.

That’s not far off from an attempt by the prior owner — Kent Kresa, former chair and CEO of Northrop Grumman — to sell the home for $46.8 million 2019.

Westside Estate Agency’s Kurt Rappaport holds the listing.