A real estate developer has become heartbroken after the Los Angeles wildfires tore through a Malibu mansion that he had just finished renovating.
Robert Rivani, a 34-year-old real estate developer based in Florida, had just finished renovating a five-bedroom oceanside home in Malibu when it was reduced to rubble by the Palisades Fire. It has burned through about 23,713 acres and destroyed 1,280 structures in Los Angeles as of Tuesday, according to data from Cal Fire.
"It's devastating. I'm in shock," Rivani said in a phone call with Daily Mail.
Renovating the Malibu Property
Rivani spent at least three years renovating his Malibu mansion, spending $27 million to build an interior courtyard, a lily-pad pond, a Zen garden, and an infrared sauna. This amount also includes the money he spent to buy the original structure of the Carbon Beach property.
The developer had only recently finished the renovations and was planning to sell the property for $40 million when the fire razed through the home. The fire has now led him to lose $20 million. It was also noted that he could only recoup $3 million through his insurance.
Rivani noted that he has not yet seen his home after the fire as the area is still under evacuation orders. He added that he plans to sue the State of California and local LA officials for "negligence" over handling the wildfires, noting that the infernos happen "every single year."
How Did the Fires Affect LA's Real Estate Market?
The ongoing wildfires, which began on Tuesday, have had a profound impact on the region's real estate market. Over 12,300 structures, including residential properties, have been destroyed since last week, per the California Department of Forestry and Fire Protection.
Rental prices have also spiked significantly as displaced residents scramble for temporary housing. In some cases, rents have increased by as much as 86% compared to pre-fire levels, the LAist reported.
Over 150,000 residents have been evacuated. Many face prolonged displacement. The crisis is disproportionately affecting lower-income families who may struggle to find affordable housing options.
