Ocean Development wins skeptics on Laurel Drive

After the Eaton fire reshaped Altadena’s housing landscape, outside investors became a common villain. On Laurel Drive, resident Crystal Nerone says a call with Ocean Development’s general contractor flipped her view—while broader questions about who benefits

On Laurel Drive in west Altadena, the fear started before any siding went up. Michael and Crystal Nerone watched in alarm as a developer known for building boxy duplexes in South Los Angeles began buying lots on their block—one in March, one in April, one in May, and another in September.

For the Nerones, deciding what to do after their home was destroyed in the Eaton fire has been a constant weighing of risk and hope. The idea of four two-story rentals on their street began tipping them toward leaving.

At community meetings, outside investors—including the buyer accumulating properties nearby—were assailed for grabbing land at what residents described as literal fire-sale prices. The concern was that destroyed bungalows and cottages would be replaced with larger homes and multifamily rentals.

When Ocean Development Inc. bought a fifth lot next to the Nerones’ property, Crystal decided she couldn’t just assume worst-case intentions. She placed a call and, to her surprise, Kip Cyprus, Ocean Development’s general contractor, called right back.

“He said I could look at the house he already built,” Crystal Nerone said. “He gave me the address and told me how to get in. I did.”

She drove to Highview Avenue and saw a completed house with curb appeal, sophisticated landscaping, and interior details she described as the kind she would want to live with—handmade cabinets, among them. She said Cyprus thought about “how someone could use this house.”

Since then. Ocean Development has been in almost daily contact with the Nerones. and the firm has become the primary engine for recovery on their stretch of Laurel Drive. Ocean Development has four modestly sized single-family houses under construction and a fifth in grading. On their block, only two other homes are as far along.

With 25 lots currently in its portfolio, four homes completed and two sold, Ocean Development has offered the Nerones a counterpoint to the fear that investors will inevitably upend what made Altadena feel like home.

Teresa Fuller, a Realtor and Altadena booster, said she thinks the idea that investors are an existential threat is a myth.

“There are a lot of developers who are really trying hard to do what they believe fits Altadena,” Fuller said. “It seems like only the real dingbats are not listening.”

Not everyone is ready to generalize from one street’s experience. Milessa Michelson, co-founder and lead organizer for Altadena Not for Sale, said she is glad for the people on Laurel Drive but worries that projects like Ocean Development’s may not be welcomed everywhere.

“I think this developer would really show some good faith to host a town hall to really include the community, open up to questions and concerns,” Michelson said. “That would be wonderful.” Michelson said it is too early to judge the overall impact because “everything is still in development mode.”

The Nerones’ story has also unfolded against a wider rebuild effort across Altadena, where construction is visible but uneven. Most blocks have no more than one or two houses being framed, and as many or more lots still growing weeds.

In east Altadena’s Oak Grove, the recovery is closer to complete. Warmington Residential. a builder led by Rebecca Anbardan. president of Warmington Residential. said the Oak Grove neighborhood has made a complete comeback. The Craftsman-style subdivision, built on a former school site, had 16 homes. When the Eaton fire destroyed seven of them and rendered the rest uninhabitable, all are now rebuilt or repaired.

Anbardan said the seven owners who chose to return will be back by the end of May.

The rapid turnaround. Anbardan argued. was possible because the family-owned Warmington didn’t walk away from the new owners—it negotiated individually. One owner repaired a damaged home; the others agreed to let Warmington rebuild for them. The unanimity allowed Warmington to rebuild the whole block at once.

In Anbardan’s view, investor capital can help the community as well as individuals who don’t want to carry the burden of rebuilding.

“I think the picture is always being painted of big, bad investors, when in reality, they were a solution to somebody,” Anbardan said. “They listed their home. They wanted out.”

She said investors “buying it and they’re providing new housing stock to those that don’t want to have to deal with it.”

The debate over outside investment has two possible harms, residents and advocates say, and they pull in opposite directions. One is that a large share of parcels could be bought and held for long-term appreciation. The other is that properties could be flipped quickly into oversized, overpriced “dream homes.”.

It’s hard to measure either harm when investors’ identities are often obscured by corporate registrations. But evidence so far suggests the effect has been limited.

A Times analysis using data provided by Redfin and county permit records found that outside investors accounted for only a small fraction of the homes destroyed in the Eaton fire. According to Redfin, 287 vacant lots sold in Altadena last year. Just under half were purchased by investors—less than half a percent of the roughly 6,000 homes destroyed.

Permit records reviewed by The Times also indicated investors were no more likely to delay rebuilding than other owners. By matching permits to investor owners, The Times found plans are on file for two-thirds of their parcels—50% higher than the overall rate for Altadena.

Outside developers are also assisting property owners with turnkey projects based on portfolios of pre-designed homes, a process that can move quickly through permitting.

The top two investors held about 22% of the 171 vacant lots purchased by registered corporations through last year. according to a list compiled by Altadena Not for Sale. Six others held three or more parcels, while all but nine of the remainder had only one. Altadena Not for Sale identified about 30 more investor sales than Redfin but did not differentiate vacant lots from single family homes.

Ocean Development, meanwhile, has pursued construction aggressively. Cyprus said his company’s work in South L.A. is winding down, and he said he was drawn to Altadena because he loves the community. Cyprus said he believed his infill-building experience—designing one project at a time to meet different circumstances—could restore Altadena’s cherished character and strengthen it.

“The houses here were at the end of their lives,” Cyprus said. “They were 100-plus years old. In 15 years from now, you would have had to be a slave to an existing house. The benefit is, everyone here, they can finish their life now in their house.”

Cyprus designed five basic housing types reflecting Altadena’s distinctive style: Craftsman, Tudor, Spanish, Mid-Century Modern and a replica Janes Cottage. Cyprus described the Janes Cottage as the steep-gabled style of the 1920s Janes Village neighborhood that burned in the fire.

He said Ocean Development committed to building like for like—each new house similar in size to the one it replaces. Cyprus said the company would build them individually with high-quality materials and no ADUs. and that when they are finished. each house would be put on the market for sale rather than rented.

Returning owners interviewed on several blocks where Ocean Development is building said they are pleased by what they see. Corinna Garza. visiting her own construction site on Sagemont Place next door to a home Ocean Development had already completed and sold. said: “If it’s a developer and it’s going to be a house. we’re happy. … We were hoping we’re going to have neighbors.”.

Still, across Altadena, movement has been slow. From a peak of more than 150 lots on the market last summer, the number dropped to about 40 active listings on average, said Corey Vorzimer, the director of land in Fuller’s real estate office. They don’t all sell.

Vorzimer said listings have remained at about that level this year, but a recent uptick in demand may signal a second wave as developers regain capital from completing earlier projects.

Redfin data shows that investors purchased about half the lots sold, a number consistent with the Altadena Not for Sale list. Vorzimer said most of the recent sales have been to investors, raising the possibility that investors will play an increasing—though still minor—role in the ongoing recovery.

Whether investors or other buyers purchase the finished homes, any sale in California’s sky-high real estate market can squeeze middle- and working-class families. According to Zillow, Ocean Development’s two sales were for $1.6 million and $1.95 million.

New homes in the Oak Grove were listed for just under $1.65 million for four bedrooms and $1.75 million for five bedrooms.

For the Nerones, rebuilding costs have forced a painful financial decision: they will have to dip into retirement funds. Crystal Nerone said that change will reshape the neighborhood, regardless of who builds.

“It’s going to change the neighborhood,” Crystal Nerone said. “There’s nothing that can be done about that. You’re selling these houses for $1.6, $1.7 million. Our houses were worth $1.2, $1.3 before they burned down. So, yeah, the neighborhood is going to change.”

With her own children now living on their own, she said she accepts the change as regeneration.

“I’m looking forward to the people who buy the house probably having kids,” she said. “Our kids grew up here. It’s going to be fun having kids playing in the street again, hopefully.”

Altadena Eaton fire Ocean Development Kip Cyprus Crystal Nerone rebuilding outside investors housing Powerball Grass Roots Warmington Residential Oak Grove