Malibu Deals Pick Up Post-Wildfire

Seven months after January’s Palisades and Eaton fires scorched more than 11,000 homes across Los Angeles County and caused nearly $52 billion in residential damage, the region is showing its first real signs of revival.

In Malibu, where rebuilding can drag on for years, the momentum is most visible on the shore. The playbook from the 2018 Woolsey Fire offers a sobering benchmark: of the 488 homes destroyed, only 205 have certificates of occupancy today. Permitting remains slow (the Palisades Fire has yielded just one plan check approval so far), but the property market is stirring. Brokers report renewed deal activity on Carbon Beach and La Costa, with lots trading from $5 million to $14 million.

One sale came from a still-unnamed foreign investor who quietly scooped up nine burned lots — eight on La Costa, one on Carbon — for $65 million. The buyer already has architects and consultants lined up to fast-track construction, betting that demand for oceanfront will outweigh the headaches of Malibu’s building process. While some aren’t thrilled at the idea of a single party consolidating parcels, others see it as a way to speed recovery in a tightly regulated, high-cost market.

Pre-construction for Malibu beach homes can run $2 million to $3 million before shovels hit dirt. Post-fire surveys peg average rebuild pricing at $580–$800 per square foot, with some topping $1,200. Builder Gary Mkrtichyan of Opus Builders says those numbers are inflated, with his current projects coming in at $550–$600 per square foot. But even at that “low” end, it’s still steep, especially for residents whose insurance payouts fall short.

The funding gap is forcing tough decisions. Some homeowners are seeking SBA disaster loans; others are selling outright. For developers, Measure ULA’s 4 percent transfer tax on sales over $5.3 million adds another layer of cost.

Outside Malibu, the Eaton Fire cleanup is nearly done, with 99 percent of ash and debris removed. More than 5,400 properties have been cleared for rebuilding, and the county has issued 149 permits — 133 in the Eaton zone and 16 in the Palisades. Support is coming from multiple angles: Southern California Edison is offering wildfire compensation funds, architects are donating free design plans and state and federal agencies are lining up grants and loans.

Rebuilding in the Palisades, however, will stay strictly single-family. Mayor Karen Bass and Gov. Gavin Newsom both moved to block use of Senate Bill 9, which would have allowed lot splits and multi-unit construction on wildfire-damaged parcels — a win for residents who want the neighborhood restored as it was, but a setback for density advocates.

The road back will be long, but it’s underway.

There was plenty of other real estate news this week. RXR closed on its $1 billion deal for 590 Madison, Opendoor’s CEO exited amid investor scrutiny and South Florida’s multifamily development frenzy is starting to cool. These stories and more below.

Rechler closes $1B deal for 590 Madison with Apollo private equity loan

Scott Rechler closed his $1 billion deal for 590 Madison Avenue with a big private equity loan, marking New York City’s largest investment sale in three years. Mark Rowan’s Apollo Global Management provided $785 million in debt to finance RXR’s $1.08 billion purchase of the Plaza District office tower from the State Teachers Retirement System of Ohio.

Opendoor CEO exits under investor scrutiny

Opendoor CEO Carrie Wheeler announced her resignation Friday after three years at the helm of the company, marking another twist in what has become a summer-long saga for the struggling iBuyer. She will remain a part of the company as an advisor to the board of directors through the end of the year.

Why developers are selling South Florida multifamily sites

South Florida’s multifamily development frenzy is cooling, as more developers quietly list planned apartment sites for sale amid high interest rates, elevated construction costs and flattening rents. For many developers, the risks are too high and returns too low to build apartments, but some are “land guys” or Live Local Act investors looking to flip sites.

Adam Neumann’s Flow, partners take majority stake in Chetrit’s Miami River megaproject

Adam Neumann’s Flow and partners Canada Global and Yakir Gabay’s Yellowstone Trust have taken a majority stake in the Chetrit Group’s long-delayed Miami River District megaproject, now valued at $525 million. Chetrit will retain a “significant” minority interest in the 6.2-acre site, which is entitled for 4 million square feet of development.

From $300M to $41M: Charles Cohen’s 750 Lex takes haircut

Charles Cohen’s Midtown East office tower at 750 Lexington Avenue has continued its plunge in value following a lender’s foreclosure judgment last month. The 31-story building’s value dropped to just $41 million — barely 14 percent of its $300 million valuation in 2015, per Morningstar Credit.

Bankrupt Oceanwide Plaza sale expected to wrap by year’s end: broker

After years of delays, graffiti and bankruptcy, Downtown Los Angeles’ massive Oceanwide Plaza project may finally have a buyer. Colliers broker Mark Tarczynski says the $1.2 billion partially built development has narrowed from 17 interested parties last year to just two serious bidders: one U.S. firm and one international developer.

Robert Rivani lands Playboy HQ for Miami Beach office building

Playboy is relocating its headquarters from Los Angeles to Miami Beach, signing a 10-year lease for a 20,000-square-foot penthouse at Robert Rivani’s office building. The move will bring the company, which has roughly 250 employees, to the seven-story mixed-use property that is currently undergoing a $100 million renovation.

Emerald Empire’s $430M Fannie-backed Pangea deal enters forbearance

Fannie Mae has struck a forbearance agreement with Moshe Wechsler’s Emerald Empire on at least $125 million worth of loans attached to Chicago apartment properties. The rental buildings were sold by Pangea Properties in a huge real estate trade nearly three years ago, making Emerald one of the city’s largest landlords overnight.