EXCLUSIVE Affluent California enclave resembles the apocalypse but buyers flocking to spend MILLIONS on charred plots

Daily Mail​

25-05-2025

When wildfires tore through Pacific Palisades last year they transformed one of L.A.'s most exclusive neighborhoods into a charred community resembling an apocalypse.
But the ash, rubble and scorched lots has not put off buyers who are now racing to pick up a plot in the luxury enclave and paying as much as $5million for a lot.
John McNicholas, a real estate agent who represented buyers in the aftermath of the fires, said the pricing landscape was uncharted territory.
'When the fire first happened, no one knew what a burned lot was worth,' he told DailyMail.com. 'I had to be the one to answer the question between buyers and sellers.'
One such lot - 15103 Albright Street - has sold for $2.65million. Pre-fire, McNicholas estimates it would have gone for up to $3.5million.
'This was already one of the most desirable communities to live in, pre-fire, in all of California,' he said. 'It consistently ranked in the top 25 most expensive zip codes in the entire United States.'
And the numbers back him up. A 8,209-square-foot plot at 635 Ocampo Drive is another example of a cleared lot in the prestigious Huntington neighborhood that has recently sold for $4.25million.
And 732 Chapala Drive, another 8,626-square-foot empty lot surrounded by cleared debris, sold for $4million.
Rather than waiting for a buyer to take on an empty lot, some developers have moved quickly - laying foundations and marketing high-end renderings of future dream homes.
Luxury builder JNY Investments, for instance, is promoting plans for an 8,200-square-foot modern estate at 15515 Via De Las Olas.
The proposed six-bedroom, eight-bathroom residence would feature ocean-facing terraces, a spacious patio, and a private rooftop.
It's listed for $8.25million, despite not yet being built.
'This community, when it is rebuilt, is going to be a community of almost exclusively 2026 or newer rebuilt homes,' said McNicholas.
'There's going to be nothing else like it on the coast of California - completely new everything all around it.'
From new schools and roads to updated utilities and fire-resistant construction, the neighborhood is being reborn - and fast.
The Army Corps of Engineers led the massive debris-clearing effort, removing thousands of destroyed structures at no cost to uninsured homeowners.
'If you opted in, [they] assessed your lot, and then they brought their equipment and cleared all the debris… free of charge for homeowners that did not have debris clearance coverage in their insurance,' McNicholas explained.
Buyers range from longtime residents planning to rebuild to newcomers using the tragedy as an opportunity to get into a neighborhood that had once been out of reach.
'There are people who have always wanted to live in the Palisades but it was not an accessible price point to them before,' McNicholas said. 'Now, because of what's happened, they can afford to buy a lot and build a house there.'
But it's not just dreamers and downsizers. Investors are circling too - some to build and flip, others to sit on the land and resell later.
'Even people that are just buying lots and holding the lots and not developing them… will likely be able to sell the lots for more money than what they purchased them for,' McNicholas noted.
Still, challenges remain. 'You cannot get financing on them,' he said. 'The purchases have to be in cash.'
And while the city has pledged to bury power lines and enforce strict fire-resistant building standards, McNicholas is realistic about the long-term risk.
'Unless the city changes how they manage the brush, there is a risk this could happen again,' he said. 'But we could say this is a once-in-a-hundred-year event.'
The early transactions, he added, were particularly complex - both economically and emotionally.
'I had to establish pricing that worked for buyers willing to take on the risk - and for sellers ready to start rebuilding their lives,' McNicholas said.
'Those early sales weren't easy, but they were market-making deals that set the stage for future lot values.'
For McNicholas, it wasn't just about closing deals - it was about restoring stability.
'What is a price that gives the buyer enough value to say, 'Hey, I won't lose money on the house I'm building'? And at the same time, gives the seller a number that helps them go rebuild their life?' he said. 'That's something I'm proud of.'
The Pacific Palisades Fire, which ignited on January 7, 2025, amid intense Santa Ana winds and prolonged drought, became one of the most devastating wildfires in Los Angeles history.
It scorched approximately 23,448 acres across Pacific Palisades, Malibu, and surrounding areas, destroying 6,837 structures and damaging over 1,000 more.
The fire claimed 12 lives and forced the evacuation of more than 100,000 residents.