Investors pay over $1 million for California ghost town with a dark past

The last time that the mining town of Cerro Gordo near Lone Pine, California, was bustling was the 1870s. That could be about to change.

A group of Los Angeles investors beat out a dozen other interested bidders to purchase the town for $1.4 million.

Of note is that this 300 acres of land and 22 structures sold for less money than most single-family homes in the San Francisco area. It is about 400 miles southeast of San Francisco and 200 miles north of Los Angeles.

And of even greater relevance, this ghost town sold on Friday, July 13th.

Cerro Gordo was once a thriving silver mining town with its proximity to the Inyo Mountains. Its elevation is 8,500 feet, meaning some visitors experience slight altitude sickness.

Founded around 1867, it was known as the “silver thread” to Los Angeles and the population went from no one to 5,000 practically overnight. It was a place where riches were lost and found rapidly, and that led to violence.

“In its heyday, it averaged a murder a week,” real estate agent Jake Rasmuson told CNN. “It’s really part of the Wild West.”

The investors say they plan to preserve this relic of the West and keep it open to members of the public.

“We did have higher offers, however, the seller really liked the buyers’ proposal and liked the buyers’ plan,” said Rasmuson.

The deserted buildings include a church, a saloon, a hotel called the Belshaw Bunkhouse, and a superintendent’s house.

The property has been owned by the same family for decades, and they’ve preserved various artifacts in a small museum. Support was provided by the Cerro Gordo Historical Foundation, but few have visited.

One challenge is the town is 25 miles — 15 on paved road and 10 on dirt road — from the closest town with a grocery store, according to CNBC.

The purchase was led by Jon Biers, 37, owner of boutique public relations agency Jack Taylor PR in New York and Los Angeles, and Brent Underwood, 29, owner of hostel HK Austin in Austin, Texas, and a partner at marketing firm Brass Check.

By 1869, the area was the largest producer of silver and lead in all of California, “yielding ores that assayed at least as high as $300 per ton.”

The speculation is that the new owners will preserve the town’s history while turning it into a place for conferences, workshops, and film shoots.

Ref: Property Report