A four-story oceanfront home in Long Beach, California, that was severely damaged by recent storms and declared unsafe for occupancy, is now drawing substantial interest from developers after its owners reduced the asking price by over $2 million. Originally listed in August for $4.95 million, the property's price was cut to $2.9 million after monster waves from Tropical Storm Rachel battered the structure in October, tearing through its lower levels.
Real estate agent Andy Carter of Fiv Realty Co. reported to the LA Times that the heavily damaged property has received five to six calls per week from developers. Two offers have already been submitted for the home, which has been "red-tagged" by authorities, signifying it is unsafe to occupy. Despite the damage, which includes a crack in one of its two foundations, Carter estimates that approximately 70 percent of the house remains salvageable.
The property's listing now explicitly states, "Property has been RED TAGGED and is LAND VALUE," a warning that has instead attracted investors who believe the coastal location is still valuable. Carter noted that the property presents an opportunity for developers to either renovate the existing structure or demolish it and rebuild, depending on their assessment of the potential return on investment.
The storms that impacted Long Beach also caused significant damage to other waterfront properties and infrastructure. Enormous waves tore away nearly 30 feet of the century-old boardwalk, exposing homes and leading to resident complaints about the city's preparedness. Mayor Rex Richardson defended the city's response, citing efforts to distribute sandbags, construct sand berms, and reinforce coastal defenses. Long Beach also announced an $11.4 million dredging project to replenish beaches with sand, aiming to provide additional protection from future storms.
Forecasters are warning of a potentially severe El Niño this winter, raising concerns about accelerated erosion and further damage to coastal properties. However, for some investors, the current market conditions, marked by high interest rates and soaring construction costs, make distressed properties like this one a rare opportunity to acquire desirable land at a discounted price, drawing parallels to developer activity seen after fires in other California areas.