Seller’s Guide: Castellammare Lots (Coastal Rebuild & View Value)
Pali Living – Your Pacific Palisades Lot Specialists
Castellammare is defined by its sweeping coastal views and unique Italian-inspired architecture. For sellers, the current post-fire market is a window of opportunity: the value of your lot’s rebuilding entitlements in this exclusive Coastal Zone neighborhood is an unparalleled asset that attracts competitive buyers.
1. Current Market Landscape: Positioning the Coastal Premium
The key to a high sale in Castellammare is positioning your lot’s spectacular views against the reduced time and risk offered by its existing entitlements.
- Pricing Resilience: While land prices across the Palisades saw a post-fire correction, the median sale price in Castellammare recently hit $4.6M, showing remarkable resilience and strong demand in the ultra-luxury segment.
- Unique Value: The neighborhood’s distinct Italian/European-style architecture and its panoramic coastal views command top market prices. Your pricing must justify the premium for Coastal Zone stability and unobstructed views.
- Buyer Profile: The primary buyer is often a professional investor or local builder who understands that the lower acquisition basis post-fire translates to better margins on a rebuilt luxury villa.
Actionable Step: Get a granular valuation based on current comps, specifically focused on view-oriented hillside parcels. Get a Free Lot Valuation.
2. Maximizing Value: Coastal Zone Rebuild Entitlements
The biggest asset you are selling is the streamlined permitting that transfers with your lot, which is critical in this Coastal Zone community.
2.1. Coastal Act Exemptions (The “110% Rule”)
- CDP Waiver: State executive orders suspended Coastal Act permitting requirements for reconstruction, allowing fire victims to restore their homes faster. This means a buyer can bypass the lengthy Coastal Development Permit (CDP) process, which is mandatory for normal construction in Castellammare.
- 110% Size Bonus: Your lot qualifies for the disaster replacement exemption, allowing the replacement structure to be up to 110% of the original home’s height, bulk, and square footage. This “pre-approved size bonus” is a significant monetary value add for a developer.
- Geotechnical Reliance: The City of LA is emphasizing the use of existing geologic and geotechnical information for eligible properties, which reduces the time and cost associated with generating comprehensive new reports. This is a huge de-risking factor for hillside sales.
2.2. Seller Disclosures and Tax Benefits
- Prop 19 Transfer: If you are over 55 or a fire victim, leverage the Proposition 19 tax transfer to reduce your tax burden on a replacement property anywhere in the state. This is a powerful financial incentive to sell now.
Official Resource: For the official text on the suspended Coastal Act and CEQA requirements for rebuilding, see the Governor Newsom’s Executive Orders on Rebuilding.
3. The Sell vs. Rebuild Decision
While rebuilding can lead to the largest eventual financial return, selling your entitlement-ready lot now avoids a potential five-year rebuild process and capitalizes on current high investor demand.
- Warning: Given the high buyer demand for entitled land, do not sell off-market. Selling publicly ensures your lot benefits from competitive bidding and secures the true market price.
Contact David & Anna Solomon
The Castellammare market requires an agent who understands the nuance of Coastal Act Exemptions and how to strategically value Italian-style view parcels.
To list your property and maximize the value of your rebuild entitlements, contact David & Anna Solomon for a confidential consultation.