Real Estate Industry News

California’s beaches are public, but on the sands of Malibu, one billionaire has been accused of stealing a slice of paradise — or at least a few scoops of it — for himself.

A lawsuit filed last week alleges that Mark Attanasio, billionaire businessman and owner of the Milwaukee Brewers baseball team, has been using excavators to dig up sand from Broad Beach and carry it back to his house as part of an ongoing construction project.

“This case is about a private property owner using a public beach as their own personal sandbox and the disturbing conversion of a public natural resource (i.e., sand from Broad Beach) for a nearby homeowner’s personal, private use,” the lawsuit says.

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The suit was filed by Attanasio’s next-door neighbor James Kohlberg, son of Jerome Kohlberg, who founded the global investment company Kohlberg Kravis Roberts & Co.

Kohlberg’s lawyers accuse Attanasio’s construction team, JILK Heavy Construction, of operating enormous excavators in tidal zones, leaking oils and exposing local marine life to potentially hazardous byproducts. The suit alleges that the construction restricted public access to the entirety of the beach.

Attanasio bought the Broad Beach home for $23 million in 2007. A decade later, he picked up the neighboring property, an empty lot, for $6.6 million.

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Mark Attanasio bought this Malibu parcel for $6.6 million in 2017 but never developed it.

Mark Attanasio bought this Malibu parcel for $6.6 million in 2017 but never developed it.

(Mac Hayward)

In March, the Brewers owner obtained permits to repair a damaged section of seawall, according to the lawsuit. In June and July, excavators allegedly began dragging sand from the beach onto his private property and also left gasoline residue in the water and sand.

Attanasio’s attorney, Kenneth Ehrlich, said his client’s company, 2XMD Partners LLC, has acted in 100% compliance with all of its permits.

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“2XMD is in the midst of a fully-permitted emergency repair of the property to protect it from ocean forces. It has secured all permits necessary for the repairs from the City of Malibu and LA County as well as thoroughly vetted all contractors and sub-contractors involved in the project,” Ehrlich wrote in a statement.

The lawsuit, which accuses Attanasio of public nuisance, private nuisance and violation of the California Coastal Act, calls for a stop to the construction, for the sand to be replaced and for fines to be issued.

The disputed stretch of sand sits just east of Lechuza Point in Broad Beach, a hyper-exclusive enclave where celebrities and business tycoons spend tens of millions of dollars for homes right on the water.

Over the years, the beach has been battered by violent storms and high tides, leading to significant sand depletion. In 2015, high-profile residents including Dustin Hoffman, Ray Romano and Pierce Brosnan committed to a $31-million restoration project to bolster the beach’s sand.

In the last few decades, Malibu has emerged as one of the priciest pockets in the country. Earlier this year, Oakley founder James Jannard sold his home there for $210 million — the priciest home sale in California history.

During that time, as the ultra-wealthy cram bigger and bigger homes into Malibu’s rugged mountains and along coveted beaches, the community has become the centerpiece of a debate over development vs. preservation and the government’s role in maintaining California’s natural beauty.

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