The buyer pool of burned lots in Southern California’s rebuild is rapidly growing.
Last week saw a diverse group of investors, including traditional developers, toymakers and even a California Lottery winner.
What’s at stake is laying claim to part of a historic, multi-community rebuild.
So far, over $84 million has been pumped into Altadena, Malibu and the Palisades by investors, based on a comb through property and state records.
Unlike Altadena and Malibu, the Palisades has yet to see a similar level of multi-lot purchasing. Palisades veteran Anthony Marguleas of Amalfi Estates last reported that multi-lot sales from syndicates are so far rare, with only one entity nabbing three lots, according to the broker’s July market report.
Additional numbers may help make that picture clearer, with Marguleas finding Altadena lots are trading 2 percent over their asking price in contrast with 9 percent below list in the Palisades.
Additionally, Altadena lots of 9,965 square feet have been selling for $643,423 on average. Meanwhile, an 8,255-square-foot lot in the Palisades averages $2.3 million, Marguleas reported.
What follows is a look at some of the larger players that have made moves in the market.
Mowbray Brothers/Zuru Tech
Total deals/volume: 9/$65 million
Where: Malibu
From a dollar standpoint, New Zealand serial entrepreneurs Nick and Mat Mowbray have so far invested the most in land.
It’s not easy to figure out why. The brothers, who made their fortune off toys and then consumer products, have focused on oceanfront parcels dotting Pacific Coast Highway.
The buys range from $5 million, which was five out of the nine deals, up to $13.8 million for a nearly 15,000-square-foot lot at 21348 Pacific Coast Highway on La Costa Beach.
The deals were done through various limited liability companies, all of which trace back to Zuru Tech US, the El Segundo-based division of Zuru Group.
In an interview with The Real Deal, their real estate agents, who declined to disclose the identity of their clients, said a team was being built to help expedite the process for when they’re ready to begin building. The identity of the Mowbrays was first revealed in a video by Kevin Shelburn, founder of Mar Vista-based Shelburn Realty Group.
Adding to the intrigue is the Zuru Tech US business. While the brothers made their fortune off toys like Mini Brands and Bunch O Balloons, they see an even bigger business in high-tech development via prefabricated housing. Nick Mowbray told Bloomberg last year, “what we’re doing with this housing project is going to dwarf everything we’ve ever done.”
Black Lion Properties
Total deals/volume: 9/$6.3 million
Where: Altadena
What’s more interesting than two brothers, who built an over billion-dollar toy business, pushing their way into Malibu real estate? Some might say an Altadena Powerball winner turned real estate investor.
Black Lion Properties, which is reportedly tied to Edwin Castro, is behind multiple lot sales in Altadena since January’s Eaton Fire.
Castro had the winning ticket in the November 2022 California Lottery’s Powerball drawing, with a $2.04 billion jackpot.
Reports began to surface in recent months that Black Lion intended to invest in Castro’s hometown of Altadena in a bid to rebuild for those who don’t have the means to do so and to keep ownership local.
“Many people who were affected by the fires in Altadena cannot or do not want to rebuild and aspire to move on and start elsewhere,” the two brothers said in a joint statement published in a Lottery website. “These purchases will help some of them, while keeping ownership of the property local.”
A state filing shows Black Lion Properties is tied to a Pasadena address managed by Jesse H. Castro, who is reportedly the brother of Edwin.
The company was formed in August 2024 as a vehicle for real estate investments and began making moves in mid-December, according to property and state records. That’s when Black Lion purchased homes in Alhambra and South Pasadena.
The purchases ramped post-fires, in March, when Black Lion scooped up its first two Altadena lots and now has nine buys so far in the community under its belt, based on records found in PropertyShark.
New Pointe Communities Inc.
Total deals/volume: 8/$5 million
Where: Altadena
San Diego building and development firm New Pointe Communities Inc. is already in the process of rebuilding, listing eight properties on its website that are currently under construction in Altadena.
New Pointe made its buys through a limited liability company, according to property and state records.
The company’s currently showing on its website a four-bed, three-and-a-half-bath Altadena floorplan that’s about 2,300 square feet.
Altadena wouldn’t be the first time New Pointe, which was founded by president Scot Sandstrom, has gone into a fire-damaged area and been a part of the rebuilding. The company acquired lots to redevelop after 2007’s Witch Creek Fire in San Diego County.
Bloom Capital Investments
Total deals/volume: 5/$3.9 million
Where: Altadena
Records show Bloom Capital Investments made five on-market purchases, ranging from 9,757 square feet to 15,892 square feet.
State records show the limited liability company is managed by Arman Narinyan, who is tied to a Glendale office on Glenoaks Boulevard. Narinyan appears to have his hands in a number of other entities registered in Glendale and Burbank that reflect a mix of business types, including a bakery.
Ocean Development
Total deals/volume: 3/$1.8 million
Where: Altadena
Ocean Development Inc. has made three plays in Altadena since the fires, according to records of on-market deals. There were two deals in March and another in April.
Ocean Development, like New Pointe Communities, is one of the more experienced in real estate among the lot buyers.
It’s helmed by founder and sole owner Amy Cyprus and says it’s built more than 2,000 units in South Los Angeles, with a focus on affordable housing. A sister company, called Ocean Properties Inc., handles property management of a portfolio that consists of four- and five-bedroom duplexes.
Iron Rings Altadena
Total deals/volume: 3/$1.8M
Where: Altadena
Iron Rings’ has picked up a few lots in Altadena ranging from 6,479 square feet to 11,729 square feet, paying anywhere from $550,000 to $675,000 for its investments.
It’s managed by Jack Rose and Quynh Palomino of Alpharetta, Georgia, according to state records and declared its business a “jewelry shop” on its state filing.
That hardly matches with the other business Rose and Palomino are tied to in Virtua Capital Management. The Arizona company is registered as an investment advisor, which was charged in 2022 by the Securities and Exchange Commission for not disclosing conflicts of interest.
The SEC said some of the company’s funds profited by pumping fund investments into real estate managed by other entities it oversaw without informing its investors, according to the SEC’s cease-and-desist order.
In addition to individual penalties, Virtua paid $1.7 million, which went into a pot that was shared among investors. The company and its executives did not admit or deny the SEC’s assertions.
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