It’s not just commercial efforts driving development in Dana Point.
Along with a revitalization of the city’s downtown area, and the closely watched redevelopment of Dana Point Harbor, residential investment in the area is picking up, especially in luxury homes.
“The city is transforming from a sleepy surfer town into a sophisticated hub,” said Villa Real Estate’s Marcia Brashier.
For commercial and residential developers, new is the name of the game.
The Strand
This year should see another wave of new deals for The Strand at Headlands, the Sanford Edward luxury gated community that kicked off in 2006.
There are 30 homes under construction at the 121-acre development site, where asking prices range from $2.5 million for a 13,000-square-foot vacant lot to $35 million for a double lot that includes plans for a new home.
To date, 70 homes have been built, and construction on the full project is slated to wrap in the next three years.
Of the original 119 lots, only three remain to be sold by Edwards, though both land and existing homes are available for sale by several original buyers.
Active Listings
For many, the relocation isn’t far, according to Compass’ Arlen Raubach.
“About 40% of the original buyers have purchased again in the Strand, either moving to a front-row location or buying a second lot,” Raubach told the Business Journal.
Raubach has sold about 16 properties in The Strand to date, with an annual sales volume topping $75 million.
With new inventory coming online, Raubach expects that figure to be much higher in 2020.
“More and more interested buyers have discovered The Strand, with many waiting for certain homes,” Raubach said. “I’m expecting this year to be a very busy one.”
He currently has nine active listings in the community, including one vacant lot, two under-construction speculative homes, and several completed homes.
One of the recently completed is 9 Oceanfront Lane.
The nearly 14,000-square-foot property has nine bedrooms, 13 baths and a $26.9 million price tag.
Billionaire Buyers
The community is home to many high-net-worth buyers who are entrepreneurs, executives, and celebrities—all of whom are looking for privacy.
“Many would be surprised at who is buying in the area,” Raubach said. “They’re very busy and very private individuals that are looking for a place to relax and keep a low profile.”
Strand buyers run the gamut—primary to vacation homes—and love “soft contemporary designs.”
“The eastern seaboard/modern farmhouse look is very hot right now,” Raubach said.
Active builders in the community include Laguna Beach-based Keith Gallo Fine Homes; Ladera Ranch-based Genova Construction and Development; Brown Brothers Construction Inc. and Patterson Homes, both in Newport Beach.
Favored architects there include Newport Beach’s C.J. Light & Associates, Brandon Architects and Geoff Sumich Design.
“It’s extraordinary what people are spending to build these homes,” Raubach said. “The final value of these properties will be huge.”
Home sites have already been approved by the Coastal Commission, and there are few design restrictions.
Development Synergy
New home projects such as The Strand have come amid a busy period of commercial investment in the area, with efforts directed at ramping up activity in the city’s Lantern District.
This works the other way, too.
“It’s a great time to buy into Dana Point, with all of the revitalization efforts occurring, especially downtown and for the harbor,” said Suzi Dailey of Realty One Group. “New and existing residents are aware that they are going to reap the benefits of these fantastic area improvements.”
Buyers throughout the city are looking for new, turnkey properties, said Dailey, though this demand is far outstripping new construction in the area.
Thus, sellers looking to shed their home quickly and for a good price are increasingly turning to remodels.
Dailey pointed to a recently remodeled home at 17 Ritz Cove Drive that’s on the market for $18.8 million.
The renovation likely put at least a 40% premium on the home, according to Dailey.
“If you have the ability and patience to do a remodel, you will more than recoup your investment,” Dailey said.
