Foreign investor has spent $65M for destroyed Malibu properties

In the charred aftermath of Malibu’s January wildfires, one buyer has been moving in silence.

While much of La Costa Beach remains a barren stretch of sand, a foreign investor has quietly acquired nine oceanfront lots — spending more than $65 million to secure some of the most coveted parcels along the Pacific Coast Highway, according to Realtor.com.

Working through luxury agents Weston Littlefield and Alex Howe of the Weston James Group, the buyer is targeting properties with at least 40 feet of frontage, betting that once the coastline is rebuilt, demand from wealthy buyers will return in force.

“He started building a team on his end of expediters, architects and kind of figured out what the best size lots and frontage would be to build on to eventually resell,” Littlefield told Realtor.com. 

Many of the most desirable sites weren’t listed publicly, forcing the team to track down owners. 

“I’d say probably about 50% had sentimental value to their properties just based on memories, or their parents passed it down to them,” he said. “But a lot of them, ultimately, just didn’t want to go through the rebuilding process because of how long they knew it was going to take to really come back.”

The scale of destruction was severe: The fire razed 720 structures in Malibu, burning miles of beachfront homes to their foundations. 

“Malibu was such a charming beach town, and all the homes that were on La Costa Beach had so much character… and for it all to just be gone and wiped out, down to the sand, is heartbreaking,” Littlefield said.

Rebuilding is a long and costly process. The city estimates permit approvals can take 12 to 24 months, and coastal construction carries steeper requirements than inland projects. 

Fees start at $11,579 for planning alone, before additional costs for site reviews or variances. Homes must generally match the original footprint, though up to 10% more square footage is allowed.

Developers must also meet FEMA floodplain standards, replace noncompliant seawalls and install Advanced Onsite Wastewater Treatment Systems instead of septic tanks.

Timber piles are banned, and narrow La Costa Beach parcels are subject to strict view protections. The city has set up a Malibu Rebuild Center to help owners navigate the process, both online and in person.

For Littlefield, the investment is a calculated bet with a long horizon. 

“Once this beach is built back and it’s all brand-new construction, I think it’s going to be a very desirable spot for a lot of wealthy people to try to buy a beach house,” he said.