On November 8th in 2018, Malibu experienced its most devastating fire in recorded history. Over 400 single family homes were lost and approximately 670 structures were destroyed from the upper canyons all the way to the bluffs at Point Dume.

The situation for those affected by the fire varies greatly. A handful of Malibu residents have already moved into their completed rebuilds. Many are still in the process of planning, permitting, and construction. On the other end are those less fortunate, many with less insurance coverage, if any at all, and fewer resources to start again. A sizable amount have sold their lots and moved on or are still looking for a buyer.

No one needs to relive the tragedy of the day, especially in light of Malibu’s incredible resilience in the face of adversity. Rather, let us celebrate how far we have come and look ahead to where we are going.

The Rebuilding Update

Malibu granted disaster replacement exemptions to the Woolsey burnouts, waived permitting fees for primary residents at the time of loss, and gave the right to an expedited process with like for like builds plus up to 10% in size to owners and buyers alike. They also hired a consulting firm to further expedite the process. Two years later, here are the standings within the city limits of Malibu (on November 9th, 2020):

Single-Family Residences

• Approved by Planning: 270
• Permits Issued: 154
• Under Construction: 138
• Completed: 16

Multi-Family Residences

• Permits issued: 12
• Completed: 0

Of the 270 approved projects, the vast majority of 173 projects have opted for the Like for Like rebuild in the same location and size plus 10% in size. 74 projects have done a Like for Like rebuild, staying within the same size and location as the previous construction. Only 22 projects have moved forward making major changes to their residence and thereby forgoing their rights to the expedited permits.

This means that of the 400+ number of lost residences, only 67.5% have made it within the 2-year deadline for a disaster replacement exemption. For primary residents during the time of loss, the deadline was extended until the end of the year 2020. For non-primary residents or buyers of burnout lots, they are no longer granted those rights unless the City of Malibu adjusts its course.

Burnout Lot Market

As mentioned, the coveted rights to the expedited permit process currently hang in the balance, at least for non-primary resident owners at the time of loss. It is these rights that make burnout lots often double the worth of those without.

Over the past two years, we have carefully tracked the burnout market for our clients who both bought and sold these properties. Here are the numbers:

• Number of Burnouts sold: 44
• Number of Burnouts currently in escrow: 4
• Number of Woolsey Fire Burnouts still listed: 13
• Average list price of active listings: $1.49M
• Average list price of sold listings: $1.462M
• Average sale price: $1.228M
• Average sale price per acre: $548,219

We’ve also tracked the top areas where these burnout lots have traded:

• Malibu Park: 17
• Point Dume: 7
• Latigo Canyon: 5
• Decker Canyon: 3
• Trancas Canyon: 3
• Encinal Canyon: 2
• Yerba Buena: 2
• Corral Canyon: 1
• Cavalleri: 1
• Ramirez Canyon: 1

Options for Burnout Owners

From the numbers, we know that about 67.5% have initiated the rebuilding process within the city of Malibu and 11% have sold on the MLS. That leaves approximately 21.5% of properties that are now facing uncertainty.

There have been hopes that the City of Malibu will be extending deadlines for the expedited permit process but nothing has been announced. In light of the scale of the disaster, delays due to COVID-19, and a large number of burnouts still without permits, we hope they proceed in doing so. The proposed amendment allows for an additional year for the expedited permitting of non-conforming structures. Owners with unusual hardship can also apply for an extension.

For up to date deadlines, please visit the City of Malibu’s resource center here.

As evidenced by the four burnout lots still in escrow, it isn’t too late to sell. Though much of the value lies in the expedited permit process, many lots have valuable infrastructure in place and a much clearer path to building even if those rights should be lost to time.

Since the Woolsey Fire, our team has transacted nearly $5.5M of burnout properties representing sellers and buyers. Our full-service approach and intimate knowledge of the market empower us to help our clients no matter what their situation may be.

For a consultation or with any questions, please give us a call at 310.994.4247 or email russell@compass.com.

Malibu Strong

We look forward to seeing rebuilding efforts continue and more homes re-occupied! The love and neighborly care that have defined Malibu’s rebuilding effort is truly incredible. We have seen resilience in those affected, compassion among the entire community, and a willingness to help one another.

To whom it may concern, we urge the City of Malibu to adopt the extension in question and allow for an additional year of the disaster replacement exemption. It is clear that while we have come a long way, there is still more work to do.

Stay well, stay safe this fire season, and keep wearing those masks!

The Mark & Grether Group / Tony Mark & Russell Grether / 310.230.5771 / russellandtony@compass.com