Post wildfire, resale of vacant lots in Altadena

[George Hatch]

I got an assignment to appraise one of the Altadena lots that got burned out in the January wildfire. Altadena is an unincorporated County pocket located just north of Pasadena and backing into the foothills.

The smaller parcels in the "flat" neighborhoods to the south are mostly selling for $500k-$700k, with some of the larger view lots backing the hills and with some elevation selling for as much as $1M. There's also some variation in the price between the parcels where all the environmental clearances are complete vs incomplete.

Lots of tragedy in these areas.

 

[glenn walker]

Yes for most especially seniors and ones who have sentimental value.

The winners were the rental owners who had old 70 to 90 year old junk that burned down because now if insured they get a Brand New Built to code home or duplex.

We had a old rental burn down 20 years ago, thank god it was vacant but it was 85 years old and in poor shape. 9 months later we had a spanking brand new house worth way more in value and rents

 

[glenn walker]

The tragedy is having some low ball appraiser come in at $500,000 when most after a little $40,000 clean up are instant sales at $700, 000 plus.

 

[George Hatch]

Something about these sales that's unexpected is that 90% of these sales don't show a 1st, and most of the sales that are showing financing are referring to a private lender, some of those might involve the seller.

We have a few power buyers that bought a bunch of these properties. By their company names I'm guessing they're Chinese. (but maybe not). Also a lot of individual buyers with Chinese names (Mandarin, not Cantonese).

2 sales that show what appear to be SFR construction financing, and 3 sales with institutional financing.

 

[glenn walker]

Something about these sales that's unexpected is that 90% of these sales don't show a 1st, and most of the sales that are showing financing are referring to a private lender, some of those might involve the seller.

We have a few power buyers that bought a bunch of these properties. By their company names I'm guessing they're Chinese. (but maybe not). Also a lot of individual buyers with Chinese names (Mandarin, not Cantonese).

2 sales that show what appear to be SFR construction financing, and 3 sales with institutional financing.

Absolutely the Chinese most are originally from Taiwan but adult kids born and raised here but their out in force buying up lots, and even more so in the Palisades but also Altadena.

All cash or private loans. There being careful to not show flips because of that Anti Predator profiteering type Real Estate Law they passed.

The consensus is some buying to hold three years then flipping or building. Who know's lot's of silent deeds being passed around.

 

[George Hatch]

American born tend to stick to their English first names.

 

[glenn walker]

American born tend to stick to their English first names.

That's mostly true .

 

[George Hatch]

Based out of Singapore


Local, but the agent's name is Chinese with Mandarin spelling/phonetics


Also local, also Chinese name with Mandarin spelling


There's a bunch of individual buyers with Chinese names. No biggie, the Chinese have been expanding outward from Alhambra/Rosemead areas for many years at this point. They and their investors have got the money so good for them.

Also, some buyer names appear (to me) to be Armenian which is another prominent group in the Pasadena/Glendale area. Also highly educated and financially successful.

 

[George Hatch]

I was just up there this morning. They're still cleaning properties up with maybe 40% of the parcels still have debris onsite. There are crews up there today so I guess its a 7/day per week operation.

That fire gobbled up some commercial properties on a couple of the main streets, so I would guess those will get rebuilt with condo or multi-family.

 

[Joe Flacco]

Developers don't go where their people are. They go where ever there is money to be made. The fact that there are Armenian people or Chinese people in the area is irrelevant.