Marcus & Millichap Brokers Record-Breaking Manufactured Housing Asset Sale in Malibu

Rhea-AI Summary

Marcus & Millichap (NYSE:MMI) has announced the sale of Point Dume Club of Malibu, a 297-site manufactured housing asset on 95.4 oceanfront acres in Malibu, California. The property, on the market for the first time since 1892, sold for the highest price per site ever achieved by a manufactured housing community. Built in 1969, it features amenities such as a heated swimming pool, tennis court, and beach access. The sale marks a significant milestone in Malibu's real estate history, with the property being part of the original Rancho Malibu purchased by Frederick Hastings Rindge in 1892 for $10 an acre. Marcus & Millichap's Dustin B. Wilmer and Douglas Danny exclusively listed and sold the property.

Positive

• Record-breaking sale price per site for a manufactured housing community
• Prime oceanfront location in Malibu, California
• Large 95.4-acre parcel with 297 housing sites
• Exclusive gated community with high-end amenities
• Strong local real estate market with average home prices of $2.1 million in the past two years

Negative

• None.

Real Estate Analyst

This record-breaking sale of Point Dume Club of Malibu is a significant milestone in the manufactured housing market. The $2.1 million to $5.6 million price range for homes in this community reflects the extreme premium placed on Malibu real estate. This transaction underscores the potential for high-value returns in niche real estate segments, particularly in prime locations.

The sale's implications extend beyond just manufactured housing. It highlights the ongoing demand for unique, high-end properties in desirable locations, even in a challenging economic climate. For investors, this sale demonstrates the importance of location and scarcity in driving property values, regardless of the specific real estate category.

However, it's important to note that this sale is likely an outlier rather than a broader market indicator. The unique combination of Malibu's prestige, oceanfront location and supply make this property exceptionally valuable, but not necessarily representative of the wider manufactured housing or real estate markets.

Financial Analyst

While the specific sale price wasn't disclosed, the transaction's description as the "highest price per site ever achieved by a manufactured housing community" suggests a substantial windfall for Marcus & Millichap (NYSE:MMI). Given the company's business model, this high-value sale likely translates to significant commission revenue.

For MMI shareholders, this deal showcases the company's ability to broker high-profile, lucrative transactions. It potentially signals strong performance in the luxury and niche real estate segments, which could positively impact the company's financial results for the quarter.

However, investors should be cautious about extrapolating too much from a single transaction. The overall health of the real estate market and MMI's broader transaction volume are more critical for long-term performance. The company's disclosure of closing 7,546 transactions in 2023 with a sales volume of approximately $43.6 billion provides a more comprehensive view of its market position and potential for sustained growth.

MALIBU, Calif.--(BUSINESS WIRE)-- Marcus & Millichap (NYSE:MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of Point Dume Club of Malibu, a five-star, 297-site manufactured housing asset located on 95.4 oceanfront acres in Malibu, California.

“On the market for the first time since the underlying land was purchased in 1892, Point Dume Club of Malibu has sold for the highest price per site ever achieved by a manufactured housing community,” said Dustin B. Wilmer, first vice president investments in Marcus & Millichap’s San Diego Del Mar Office. “The property is on the last 95.4 acres of the original 13,330-acre Rancho Malibu and is the largest privately owned oceanfront parcel in Malibu.” Wilmer and Douglas Danny, senior managing director investments with Marcus & Millichap, exclusively listed the property on behalf of the sellers, the direct descendants of the founders of Malibu, Frederick and May Rindge. Wilmer and Danny also procured the buyer.

“Point Dume Club of Malibu is one of just two manufactured housing communities in Malibu, where in the last two years homes have sold for an average of $2.1 million and up to $5.6 million,” added Wilmer. “The property’s storied history includes the purchase of the original Rancho Malibu land grant in 1892 by Frederick Hastings Rindge for $10 an acre, the highest price paid per acre for land in the nation at the time. Over the years, the Rindge family expanded the property to 17,000 acres. They built the Malibu Wharf, now known as the Malibu Pier, the Port Los Angeles Railway and created Malibu Potteries tile factory. In 1968, the Rindge family donated 138 acres of ranchland to Pepperdine University for a new campus.”

Built in 1969 with coastal boundary lines that are close to Zuma Beach, Point Dume Club of Malibu is just off Pacific Coast Highway. Point Dume State Beach, Westward Beach, and Paradise Cove are nearby, and Downtown Los Angeles is 30 miles away.

The controlled-access gated property has a basketball court, car wash, newly remodeled clubhouse, 24/7 security, laundry facilities, playground, a heated swimming pool, dry-heat sauna, tennis court, original Malibu Tiles, beach access, and waterfront views.

About Marcus & Millichap, Inc. (NYSE: MMI)

Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240917121248/en/

Gina Relva, VP of Public Relations

Gina.Relva@MarcusMillichap.com

Source: Marcus & Millichap, Inc.

FAQ

What is the significance of the Point Dume Club of Malibu sale for Marcus & Millichap (MMI)?

The sale of Point Dume Club of Malibu represents a record-breaking transaction for Marcus & Millichap (MMI), achieving the highest price per site ever for a manufactured housing community. This showcases MMI's ability to handle high-value, unique properties in prime locations.

How many housing sites does the Point Dume Club of Malibu property contain?

The Point Dume Club of Malibu property contains 297 manufactured housing sites spread across 95.4 oceanfront acres in Malibu, California.

When was the Point Dume Club of Malibu built and what amenities does it offer?

Point Dume Club of Malibu was built in 1969. It offers amenities such as a heated swimming pool, tennis court, basketball court, clubhouse, 24/7 security, laundry facilities, playground, dry-heat sauna, beach access, and waterfront views.

Who were the sellers of the Point Dume Club of Malibu property?

The sellers of the Point Dume Club of Malibu property were the direct descendants of Frederick and May Rindge, the founders of Malibu who originally purchased the land in 1892.