Architect Leo Marmol Speaks about Rebuilding Costs

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This home in Mandeville Canyon was designed by Marmol Radziner.
Photo: ROGER DAVIES

Co-founder of Marmol & Radziner, architect Leo Marmol spoke to the Pacific Palisades Community Council at its February 27 meeting about the next steps for rebuilding residences in Pacific Palisades. During the Palisades Fire, about 5,419 homes were destroyed and 764 damaged.

Marmol emphasized that there are a few positives including that the entire utility infrastructure will need to be replaced, meaning Pacific Palisades and Altadena will be one of the few communities in Los Angeles to have an updated utility structure. “That will improve property values for generations to come,” he said.

Marmol pointed out that a resident would be able to design the new home to meet the family’s lifestyle needs, and that the reconstructed home will have a higher long-term value.

He first spoke about debris removal, which many in the Palisades are already undertaking, and then said, “We are now going to discuss the permit approval for the fire rebuild of properties.”

He urged everyone to go to Zimas, type in a property address and then pull up a detailed analysis of a parcel. “The most important information is the status of your property as it relates to the different areas defined by the California Coastal Commission.”

About 50 percent of the parcels in Pacific Palisades are 1) outside the Coastal Commission jurisdiction or not in a coastal zone, 2) the next group are those with a Categorial Exclusion, then 3) Single Permit Jurisdiction Area without a categorial exclusion and 4) Dual Permit Jurisdiction Area without a Categorial Exclusion (most sensitive areas).

It is important to know which zone you’re in to determine the permits and building time.

NOT IN A COASTAL ZONE/CATEGORICAL EXEMPTION:

If one is not in a coastal zone and building less than 110 % of the pre-fire floor area, this is the fastest permit path. Most likely one will be able to add an Accessory Dwelling Unit (ADU), too. If one is rebuilding more than 110%, it will take longer to go through permitting and an ADU is not eligible –it will require a full C.D.P. (Coastal Development Permit).

One can exceed 110% without a significant impact to your permitting time IF one is outside of the Coastal Commission jurisdiction OR if one has a Categorical Exclusion.

NON-CATEGORIAL EXCLUSION ZONES:

If one is rebuilding more than 110% in the remaining zones, it will require a CDP, and an ADU and a building must go through the standard permit process. “A CDP will generally take a minimum of two years,” Marmol said.

COSTS:

He said there are two parts to estimating the cost of a new residence: hard construction costs and soft pre-construction costs. “The typical overall project budget EXCLUDES loose furnishings and fixtures,” he said.

People in the Palisades have been quoted everything from $650 per sq. ft. to $1,200 a sq. foot to build. That means that many residents are confused about the actual costs to build a new home.

“Not everyone is including the same things in the cost,” Marmol said. “The hard cost per square foot needs to include EVERYTHING that is permanent to the house, materials, labor and contractor’s fees –and it needs to include the cost of the walls, windows, kitchens, toilets, lights, finishes and countertops.”

Many people will just select the builder/architect who gives the lowest cost, but there may be huge discrepancies in what an owner might receive. In other words, people may be comparing “apples to oranges.”

Marmol also addressed contingency fees and cost escalations. He said that there are two types of contingencies: contractors and owners. The contractor’s contingency should be baked into the hard cost of construction. But an owner should also have a contingency for unforeseen conditions.

Why would prices go higher?

• Inflation
• A building boom in L.A. (Palisades and Altadena – and the 2028 Olympics), which will place a burden on the local construction industry
• Possibility that U.S. Tariffs will impact material and product costs
• Legal status of immigrants might result in a labor construction shortage

Leo Marmol

Marmol said, “I have spoken with so many, and while each story is unique, we are also hearing many similarities as each family calculates their remaining mortgage owed, the available insurance settlement and the actual cost of reconstruction.

“This financial equation is leaving many with a financial gap between actual construction costs and insurance settlements,” he said.

To hear his full presentation click here:  His presentation starts about 10 minutes in the recording.

Marmol Radziner is an award-winning firm that Architectural Digest has described as “master builders” and the Hollywood Reporter named the firm as “one of the 25 most influential interior designers in L.A.” and as one of the “10 hottest architects changing L.A. real estate.” https://www.marmol-radziner.com/

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