Above a Watery World : Capistrano Beach sits atop a bluff that affords it ocean views without the hustle of a waterfront

From the time 11-year-old Dave Jernigan and his family made numerous trips from Walnut Creek to South Orange County beaches to surf and swim, he knew he wanted to live by the ocean. Later he and his wife both hoped that they could enjoy ocean-view living.

And now Jernigan, 30, manager of a printing company in Irvine and his wife, Tania, 28, who works at a mortgage company, and their young daughter, Alexandra, not only live near the water in Capistrano Beach, they live only minutes from Pines Park where they were married.

They paid in the high $200,000s for their 2,700-square-foot, five-bedroom, three-bath home that has a large family room downstairs, front and back yards and an ocean view. But the purchase of their Capo Beach home almost didn’t happen.

“We had narrowed our choices down to a couple of properties elsewhere and were waiting for Tania’s parents to take a look at them,” Jernigan said. “On their way over to meet us, they saw a house for sale in Capo Beach. After we looked at the Capo Beach house, we called the agent and put in a bid that day.”

One of the nice things about living in the community, the Jernigans said, is the interaction with the neighbors.

“We sit outside and talk with the neighbors about surfing or the community’s history and longtime residents. One neighbor, who is the original owner of our property and has lived here for 30 years, told us that when he paid $500 for this piece of land, he thought it was a reasonable price compared to the $2,000 to $3,000 for a spot on the bluff,” Jernigan said.

Capo Beach, a narrow strip of land, lies off Pacific Coast Highway, southeast of Dana Point--of which it is officially a part--and up the coast from of San Clemente. Geologically, the oceanside town sits on a marine terrace, a section of the graduated step pattern created by the receding Pacific Ocean eons ago. The town’s position on the bluff affords its solitude and escape from fog-encased mornings. Below extend the ocean and shoreline that continue to beckon.

And regardless of the market value of their seaside property, homeowners said that picturesque Capo Beach is the perfect place to live.

“There’s no price that you can put on the chance to look out at the ocean and watch the sun set over Catalina,” said Capo Beach resident Jim Curwood, 38, owner of South County Cyclery in San Juan Capistrano, who with his wife, Sue, 37, an executive secretary, is expecting twins. The couple are excited about raising their children here and have planned accordingly. Palisades Elementary School is at the end of the block, and they have purchased the lot adjacent to their home.

“We’re hoping to have a huge yard and have all the kids in the neighborhood play there,” Sue Curwood said.

The Curwoods are longtime coastal residents and definitely wanted an ocean view, which they now enjoy through windows that span the back of their 1,200-square-foot home. The couple paid under $200,000 for a duplex, which they converted into a three-bedroom, two-bath house with a sun patio.

Quaint and unobtrusive are characteristics that epitomize Capistrano Beach. And said Lt. Paul Ratchford, chief of police services of Dana Point, which includes Capistrano Beach, the community has no real crime concerns.

“Capo Beach is a stable community with a very active Neighborhood Watch and homeowners association. And our Community Support Unite, a community-based policing division, communicates regularly with residents to address problems before they turn into crimes,” Ratchford said.

But this idyllic town wasn’t always quiet or low-profile. Nor was it always called Capistrano Beach. In 1887, the Pacific Land Improvement Co., a subsidiary of the Santa Fe Railroad Co. established a subdivision called San Juan-by-the-Sea.

“Once the railroad was extended, the town became an important connection to ports and towns between San Diego and Los Angeles,” said Liz Bamattre, president of the Dana Point Historical Society.

But within four years, growth and plans for developing a resort stopped because vacationers preferred San Juan Hot Springs. Although San Juan Hot Springs was a dusty 12-mile ride inland from the shore, mud baths, a dance hall, a swimming pool and boarding cabins outdrew the beach.

The town took the name Serra until 1925, when developers established a second community called Capistrano Beach. For a brief time, the town was called Doheny Park after the oil magnate who took over the property during the Depression. But in 1948, the town once again assumed the name of Capistrano Beach. The town became part of Dana Point in 1989 when Dana Point incorporated, but it continues to maintain its identity as a residential area, not a resort, Bamattre said.

“Most of the streets and homes are on the ocean side, which makes the beach, Pines Park and schools easily accessible, and this is the big draw to Capistrano Beach,” said Dan Raphael of Coldwell Banker Real Estate in Capo Beach.

According to Raphael, homes in the area are a combination of condos, single-family homes and beach-front duplexes. One- and two-bedroom condos are the least expensive and sell for $100,000 to $120,000. The average price for homes off the bluff with no ocean views, but within walking distance of the beach, is between $200,000 and $400,000. For $875,000 you can have a three-bedroom, 2 1/2-bath, 2,500-square-foot remodel along the bluff with a view. And if waterfront is your preference or your investment, expect to spend a million dollars to live on Beach Road, Raphael said.

Darrow and Mary Margaret DeCarlo now recognize what a good decision they made when they bought a house on the bluff for $30,000 in 1970. But the location of their home was secondary to finding a healthy atmosphere and good school environment for their four children, who attended San Clemente High School.

A retired computer consultant, DeCarlo, 66, said that Capo Beach is busier now but that the friendly, small-town ambience has been preserved.

“It’s special living here. We know a lot of people and feel part of the town. It’s also very scenic,” he said.

From the back yard of their 2,100-square-foot, four-bedroom, two-bath house, the DeCarlos see the water and catch the ocean breezes. The front yard faces the Santa Ana mountains.

Longtime residents Mike and Beth Reed were at one time tempted to sell their Capo Beach lot for $27,000. They decided to borrow $50,000 and build a home instead.

The Reeds and their two children, Nicole, 16, and Brandon, 14, live two blocks north of Pines Park in a 2,200-square-foot, three-bedroom, 2 1/2-bath home with a reverse living design. The living area and family room are upstairs, where family members spend more time and can take full advantage of the view.

Raised in Newport Beach, Beth Reed, 41, homemaker and partner in Pen-Reed Co., a golf accessory and Western shirt manufacturing company, says she’ll never leave Capo Beach. She loves the village feeling and the individuality expressed in neighbors’ homes.

“Capo Beach isn’t a planned community, so houses are different from each other. Individual outlooks are expressed,” she said.

Neighbors like their privacy but are friendly and will get together to protect the community, said Mike Reed, who is the journalism chairman at Saddleback College and faculty adviser to the Lariat, the school newspaper. Everyone appreciates the wonderful environment, the beaches and the parks, he said. And people aren’t afraid to walk outside at night even without street lights, Reed added.

“We don’t want street lights. We like it the way it is so we can see the stars.”

The Reeds have developed close ties to the community. Mike Reed learned to race sailboats with his father in local waters. Beth Reed attended San Clemente High School, where Nicole and Brandon are students and where her husband was a teacher early in his career.

“Our children have never had to move out of Capo Beach and probably won’t. Capo Beach is unique; the climate is great; you can’t beat it,” Mike Reed said.

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Capistrano Beach Home Sale Data

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Sample Size 880 (for 10-year period) Ave. home size 1,945 (square feet) Ave. Year Built 1968 Ave. No. Bedrms 3.19 Ave. No. Baths 2.27 Pool 6% View homes 24% Central air 6% Waterfront 2% Floodzone 66% Price Range $130,000-710,000 (1994-95) Predominant Value $250,000 Age Range 8-78 years Predominant Age 26 years

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Average Sales Data

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Year Total $ per Median Sales sq. ft. price 1995* 22 $126.45 $255,636 1994 65 $132.62 $237,215 1993 56 $133.15 $218,517 1992 59 $153.34 $252,669 1991 61 $158.68 $275,819 1990 71 $175.50 $332,023 1989 71 $182.17 $334,971 1988 173 $137.73 $262,968 1987 178 $116.24 $214,634 1986 124 $101.14 $165,550

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*1995 data current through June.

Source: TRW Redi Property Data, Anaheim

At a Glance

Population

1994 estimate: 6,257

1990-94 change: +13.3%

Annual income

Per capita: 30,753

Median household: 44,709

Household distribution

Less than $30,000: 21.4%

$30,000 - $60,000: 32.5%

$60,000 - $100,000: 24.7%

$100,000 - $150,000: 13.3%

$150,000 + 8.1%