Storm-Damaged Long Beach Home Draws Developer Offers

A four-story home on the Long Beach Peninsula that failed to sell for $4.95 million before October’s storms has drawn developer interest after its owners cut the price to $2.9 million. Waves damaged the property’s lower living areas, and authorities deemed it unsafe to occupy.

The home returned to the market on October 14 with a listing description stating that it had been red-tagged and was being sold for its land value. Agent Andy Carter said developers had been calling five or six times a week, and two had made offers.

Carter estimates about 70% of the house can be salvaged. The damage includes a fracture in one of its two foundations, leaving prospective buyers to weigh repairs against demolition and rebuilding. The house has ocean views and a private elevator, but the storm damage and safety designation have altered its prospects.

High interest rates and rising construction costs have made development projects harder to justify, increasing the appeal of properties available at a lower initial price. But buying on an eroding coastline carries added risk, particularly with a potentially severe El Niño forecast for the coming winter.

The property is the only storm-flooded home currently listed on the peninsula, Carter said. He expects the strong investor interest could lead other owners to consider selling. Some buyers are holding back, while others see a chance to make the numbers work.