As we approach the 10th anniversary of the Eaton Fire, which destroyed 6,000 homes in Altadena and surrounding areas, the clock is ticking for survivors to figure out their next move, and Genesis Builders wants to help.
Genesis Builders, a joint venture between Century City-based real estate investment management firm Cityview and Calabasas-based Montage Development, aims to provide a solution for the Altadena community, offering a start-to-finish rebuilding process with a fixed price and a 16-month guarantee that includes pre-construction work.
“Genesis is the start of something new…We’re trying to do everything we can to help people start over,” said Cityview CEO Sean Barton.
With six pre-approved home plans available in four architectural styles: Mediterranean, Traditional, Craftsman and Bungalow, Genesis has 24 options for homeowners. Genesis will also oversee site investigations, including geotechnical reports and city plans specific to each homeowner’s parcel.
Genesis examined all the homes destroyed in the Eaton Fire and determined that about two-thirds were between 1,000 square feet and 2,500 square feet. Therefore, they created designs ranging from 1,250 square feet to 2,200 square feet.
“(Our design) was really based on an understanding of what was destroyed in Altadena and the site configuration,” said Genesis principal Devan Shah. “That shaped and influenced our product development.”
Shah also stressed that pre-approval does not mean there is zero flexibility in homeowner plans, and said Genesis will work with customers to maximize what is important to them within reason.
Central to Genesis’ strategy was creating fixed prices and schedules. Base prices range from $670,000 to $880,000, or $400 to $536 per square foot.
As programs like mortgage forgiveness end and relocation assistance disappears, a strict and rapid rebuilding schedule with transparent pricing will give people “peace of mind,” said Rebecca Zandowski, Genesis’ senior director of business development.
A team assists Genesis Builders at the burn site in Altadena. (Photo courtesy of David Sprague)
That includes Zandowski, as she lost her home in Altadena to a fire and is rebuilding it with Genesis. Mr. Zandovskis worked for one of City View’s lease-up companies for the past several years, but transitioned to Genesis earlier this year.
“The silver lining of this tragedy is that I can be a part of rebuilding the community,” she said.
Like many, Zandowski said he explored the path of custom rebuilding, but ultimately compared it to “getting caught up in financial turmoil.” Through the Genesis program, she will be able to use a combination of insurance payments, an SBA disaster loan, and a portion of her savings to pay for her rebuild.
“My home was my retirement location. I don’t come from a wealthy family, so it meant everything to me and my future,” Zandovskis said. “…I don’t think my colleagues realized that they literally saved my future and they saved (my) retirement savings.”
Genesis employs several strategies to keep prices low. The company is leveraging its relationships with long-term subcontractors in City View and Montage to reduce margins and emphasize the social benefit aspects of the turnaround. It is also working with state and local leaders to waive permit fees and ease certain requirements that are costly, such as battery backup and solar power. You can benefit from building in bulk.
“Building multiple units at once, rather than one unit at a time, lowers prices and allows economies of scale and savings to be passed on to homeowners,” Barton said.
Shah said working with L.A. County to get pre-approval for housing plans is another factor that speeds up the process and saves time and money.
Steven Ross, president and CEO of Montage Development, said it is important that current homeowners are not forced to sell their properties as homeownership is disappearing in the county.
One of Ross’ biggest frustrations throughout the rebuilding process has been watching companies make pricing promises early on, but then impose additional costs on homeowners along the way.
“Many of the people we choose as clients started with design-build and were told the price per square foot was X. Now it’s X plus $100 and it’s going to cost them another $50, and they can’t afford it,” he said. “So we don’t want people to sell their land because they think they can’t afford a house.”
While schedule and cost are definitely top of mind for anyone rebuilding, Ross said the biggest concerns when talking to residents are fire safety and making sure something like this doesn’t happen again.
Fire protection technologies incorporated into Genesis’ home plans include “Class A fire-rated roofing and flashing, fire sprinklers, fire-rated and fire-resistant eaves, gutters, foundation vents, double-glazed windows, fire-resistant and non-combustible exterior finishes, decks, patios and porches, five feet of defensible space around the home, stucco siding and concrete slabs.”
“Our mindset was to do our best to rebuild a house that, hopefully, would never burn down again,” Ross said.
Shah noted that these plans “exceed California standards” when it comes to fire safety.
In addition to the residential project, Genesis is planning two 800-square-foot accessory dwelling units (ADUs) and one 528-square-foot ADU, which will also be available in different architectural styles and cost about $240 per square foot for two bedrooms and $350 per square foot for one bedroom.
As of last week, Genesis had signed eight contracts for rebuilding, four of which selected ADUs. Of the more than 20 households working with Genesis that have not yet signed on, about two-thirds have expressed interest in adding an ADU, and Ross said the demand for ADUs is “huge.”
Oren Amir, owner of Pasadena-based Go Home Builders, a contractor that specializes in ADUs, said demand is not limited to people rebuilding, but has been increasing among homeowners for about five years.
He noted that in 2018, Los Angeles County received between 1,000 and 2,000 permits for ADU construction. Meanwhile, there are already 14,000 people so far this year. ADUs can generate rental income, be used as family housing or flex space, and increase property value because the square footage counts toward someone’s overall square footage of the property, Amir said. Adding an ADU is a “no-brainer” for businesses that have already begun rebuilding, he said.
“If you’re already doing the rebuilding, that means you already have the materials and labor (at your expense), so it makes sense to build the ADUs at the same time because it’s cheaper than doing them separately,” Amir said. “It’s a no-brainer to take this investment and put it in the back of your house and actually get some value out of it.”
Signs around Altadena. (Photo courtesy of David Sprague)
As part of its efforts to connect with the Altadena community, Genesis will soon open local stores where customers can come in, talk to team members and explore samples of finishes, countertops, appliances and other options.
“Rebuilding a home after a fire is one of the biggest decisions that comes with emotional underpinnings,” Zandowski said. “So we want people to see us, shake our hand, sit down and have a conversation…and we want to be able to bring that to the community (rather than asking them to come to us).”
Zandovskis also believes customers will find value in being able to see and touch design elements first-hand, emphasizing carefully sourced materials such as engineered wood rather than vinyl or luxury Spanish tiles.
“Seeing something on paper or on a computer screen is one thing, but seeing it live and in person is another,” she said. “…That was a big part of it was making sure the quality and making sure that the Genesis was not only fast and cheap, but also very well made and better than anything I’ve ever had in my house.”
Zandowski and Ross said they expect clients to be pleasantly surprised by the material choices.
“Our focus has been on keeping the cost of building these homes as low as possible without sacrificing quality and fire safety standards,” Shah said. “…It started with a desire to reverse engineer typical construction challenges and pitfalls.”
