Malibu's first condo development in decades underscores affluent enclave's shortage of supply

Privé Malibu includes 68 for-sale condominium units in Malibu, California. (BH3 Management)

Malibu, the California enclave known for ocean views, mountain access and mansions, has seen its housing market stall over the past year following disruptions from wildfires. But the opening of the city’s first condominium development in decades is a sign of the area’s potential in 2026. Privé Malibu includes 68 for-sale condo units set across 10 acres in Point Dume. Sales started earlier this week, according to BH3 Management, the Fort Lauderdale, Florida-based team behind the project.

BH3 bought the property in 2024. At the time, it was a rental complex that had been updated in 2018. Over the last year-and-a-half or so, the team oversaw upgrades to the units and the campus, adding amenities, such as a Zen garden and “biohacking studio.”

“As spectacular as Malibu is, there’s not really product like this that exists out there,” Daniel Lebensohn, co-CEO and co-founder of BH3, told Homes.com in an interview.

The development offers two- to three-bedroom condo units, townhouses and penthouses starting at $2 million. Residences range in size from just shy of 1,600 square feet to more than 2,200 square feet.

Buyers can choose between fully-furnished units and blank canvases they can design themselves. — Buyers can choose between fully-furnished units and “blank canvases” they can design themselves, Lebensohn said. (BH3 Management)

Condos are few and far between in Malibu

The project speaks to a larger trend in Malibu: a shortage of inventory exacerbated by recent wildfires.

Between the 2018 Woolsey fire and the 2025 Palisades fire, some 750 homes have been destroyed in the city over the last eight years. Only a small fraction of those homes has been rebuilt.

“Inventory in Malibu is rare Earth,” Lebensohn said. “That’s why we think this is so special.”

According to Homes.com, there were just 24 for-sale condos in all of Malibu, two of which were Privé units, as of Thursday.

At the same time, there are signs that there’s a shift westward in Malibu. Homebuyers are moving farther into the city, driving demand for properties in neighborhoods like Point Dume and Malibu West.

“As the center of Malibu gets more and more developed, you get more traffic, more congestion,” Sandro Dazzan, a real estate agent with The Agency, said. “The main reason people are coming to Malibu is for the rural character and experiencing a beautiful, quiet, rural lifestyle, which, as you move out to further west Malibu, you’re starting to get more of that.”

Catering to luxury lifestyle demands in California

Building condos to appeal to Malibu buyers required some special considerations, according to Lebersohn.

BH3 oversaw upgrades to the property, including a refreshed pool space. (BH3 Management)

For one, there was an emphasis on resort-like amenities. After the BH3 redevelopment, the Privé campus now includes an upgraded pool, a fitness center with artificial intelligence workout tools, a yoga lawn, a dog park, a playground and nature paths.

“We’ve just elevated everything to make it that much more special when it comes to longevity,” Lebersohn said. “There’s definitely a bend toward health and wellness in Malibu.”

In addition to the amenities available on Privé’s 10 acres, residents “don’t have to throw a stone to find additional complementary health and wellness” benefits, like access to Malibu’s beaches and hiking trails.

The property was also updated to incorporate fire-resistant materials, which have become more mainstream after recent wildfires. For example, there are ember-resistant vents, non-combustible siding, fire-retardant landscaping and integrated natural fire barriers. There’s also an on-site pool pump system to provide a supplemental water source in case of an emergency.

The Malibu housing market is set to rebound in 2026

Since last year’s Palisades fire, the Malibu housing market has been stalled. Things were especially slow for the first half of last year while the Pacific Coast Highway was closed.

Now, though, there are signs that 2026 could be a turning point for the Malibu housing market, according to Dazzan, the agent with The Agency.

“It’s been the busiest the market has been since the Palisades Fire,” he told Homes.com. “Lots more showing activity, a lot more calls, closings that have occurred.”

At Privé, the team is banking on that pent-up demand, especially from Californians who left the state and now want to return, Lebersohn said.

“People in California, they’re resilient and they always come back,” he said. “We believe that there’s a deep appetite for people, whether they were displaced or just because they want to have a place in Malibu.”