- First commercial sale: BH Properties purchased a fire-damaged retail lot in Pacific Palisades for $1.5M, the first commercial property sale since the January wildfires.
- The deal signals investor optimism in the market, which saw over $22B in wildfire-related losses.
- The undeveloped 0.09-acre parcel will need city permits, environmental reviews, and new design approvals before construction can begin.
A Spark of Recovery
After January’s wildfires burned 40K acres, a key commercial deal closed in Pacific Palisades, per CoStar. BH Properties has acquired a 0.09-acre fire-damaged retail site at 15326 Antioch St. for $1.5M — or roughly $17M per acre.
The former site of a 1940s-era retail strip housed tenants like UPS, a fine art gallery, a salon, and a boutique before being destroyed. It’s now the first commercial property in the area to trade hands post-disaster, offering a glimmer of momentum for the recovery of this high-income enclave.
A Unique Opportunity
The lot had been held by the Lee Family Trust for over three decades and was listed for just over six weeks before BH Properties closed the deal. Known for acquiring distressed retail assets in dense urban areas, BH Properties’ investment signals long-term conviction in the area’s rebound, despite the extensive permitting and rebuilding process that lies ahead.
“This transaction could be a good signal for the market,” said Ryan Patap of CoStar. “It shows that this buyer has the long-term conviction that the neighborhood will come back.”
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Still Early Days
Though nearly 200 fire-damaged residential parcels have hit the market, this sale stands alone for commercial properties. The broader recovery remains sluggish — of 194 listed single-family lots, just 21 have sold, while 154 remain active.
Meanwhile, Palisades Village, developed by Rick Caruso, plans to reopen in January 2026 after only minor wildfire damage. Caruso said his firm does not plan to buy more fire-damaged properties. However, he may consider purchasing adjacent parcels if approached by nearby owners.
Why It Matters
The sale could be a bellwether for other distressed commercial properties in the region. Full recovery may take up to a decade, though federal aid and faster permitting could speed things up, says LAEDC.
For now, BH Properties is leading the charge — and betting that the Palisades will come back stronger than ever.
