Developers build beach houses for first-time buyers

COSTA MESA — Pete Zehnder and Steve Jones began their investment in the Westside a couple of years ago when they started Bettershelter, a real estate consulting and development firm.

They also bought and started remodeling a 12-unit property on Bernard Street with the goal of creating a hip living environment for design-minded first-time buyers.

What has resulted is 1.7 Ocean, the name of the enclave of bungalows that refers to their distance from the beach.

The homes are painted a rich grey with light green trim, which, when finished, will be lushly landscaped. Their simple-but-hip design conjures images of beach and surf culture.

“Most of the newer projects in Costa Mesa are kind of the same,” Zehnder said. “It either seems like the tendency is to build these kind of Mediterranean-style or just build big houses — as big as they can squeeze on a small lot.”

The bungalows are still under construction, but already seven of the homes have buyers who all fit Zehnder and Jones’ initial thought of who would like the homes — young, single, first-time buyers.

“We had this idea of who our buyer would be — someone who works in the surf industry and has a sense and proclivity for design and what design means,” Jones said, sitting in the model home at 1.7 Ocean.

Kyle Byron, 37, one of the bungalows’ newest owners, joked that he’s looking forward to taking a stroll to nearby Goat Hill Tavern. But more than that, he’s excited to move into the mid-century-like bungalow.

Byron isn’t into “stucco Italian-style McMansions” that are so popular in Newport-Mesa.

“That mid-century modern is a really cool style — the architecture and design sensibility is great,” Byron said in a telephone interview. “I was amazed that they were there right smack down in the middle of where I wanted to live, and I went to the model and it just looks so cool…. I just thought it was great and the price — it’s really hard to find something, especially that is all brand new like that, for that kind of price — you just don’t come across that very often.”

In a time when the median home price in Costa Mesa hovers around $700,000, according to DataQuick Information Systems, Zehnder and Jones’s bungalows range from $519,000 to $559,000, with upgrades available.

“I rehabbed units for years, so I think I understand what people are looking for,” Jones said. “At this price point, people are asking, ‘Do I like it and can I afford it?’”

And they’ve been doing the selling. Jones and Zehnder conduct open houses from 1 to 4 p.m. every Saturday and Sunday afternoon and have been selling the homes without a real estate middleman. But they’re not out of their league — both have owned property and participated in the local real estate market for years.

Zehnder and Jones also plan to start an organization for Westside business owners. They have dubbed the group the Westside Business Culture with other founding members, including Shima Soffer, daughter of maverick restaurateur Sid Soffer.

For more information, go to www.bettershelter.com.