Sellers Enjoying a Land Rush for Million-Dollar Ocean-View Lots

The million-dollar move-up buyer keeps moving higher. Over the past 60 days, owners of the Pinnacle at Monarch, in Laguna Beach, have sold nearly half of their ocean-view custom lots for $1.2 million to $2.6 million.

Large, flat tracts overlooking the Pacific have become increasingly rare in Orange County, and buyers are willing to pay premium prices for them. In fact, since the lots were first offered, rates have risen by 15%. But individuals have paid the extra dough for what will be an exclusive community of 22 homes ranging between $3 million and $6 million each, ranking as one of the Orange County’s most expensive enclaves.

Meanwhile, six lots that offer no views or partial views have barely generated a phone call, let alone any offers. The buyers, young hotshots in the high-tech industry, want views that in this case stretch from San Clemente to Rancho Palos Verdes, said David Michelson, general partner, Three Arch Investors.

“We’re ahead of our original sales projections,” said Michelson, who expects the remaining 12 lots will be sold by early next spring.

The lots, perched above other homes in the city’s south end, have been a source of contention among homeowners who feared the project could cause environmental damage. Preservationists fought the development until the state Supreme Court rejected a final appeal in May. Michelson’s group put up more than $10 million this summer to buy the site earlier this year from Las Vegas casino owner Jack Binion.

Surprisingly, Michelson said, four of the 10 buyers are from nearby Ocean Ranch in Laguna Niguel. Having recently built homes in the $2.5-million range, they’re moving to the Pinnacle for a better view, he said. One person, who bought the highest-priced lot at $2.6 million, is planning a 15,000-square-foot home with a 16-car garage.