The old proverb about good things coming in small packages is usually spot-on, and it especially rings true when it comes to this historic gem in Southern California’s seaside enclave of Laguna Beach.
Nestled on the northern edge of the artsy Orange County town, just steps from the beach, the 727-square-foot cottage was built as a home studio in the early 1900s for noted artist Henri De Kruif, known for his illustrations of Southern California scenery. More recently, it’s been occupied by filmmaker Gregory Caruso, the son of Los Angeles real estate developer Rick Caruso, who bought the place as a weekend retreat in 2021 for $1.7 million and then undertook a remodel with Hammer and Spear.
Now, after first listing for nearly $4 million earlier this year and being offered as a rental for as much as $12,000 per month, the modest but visually enticing treat has returned to the market for a dash under $3 million. Casey Lesher of Christie’s International Real Estate Southern California holds the listing.

An open-concept great room with ocean views is spotlighted by dining and sleeping nooks.
Hilly Collective
RELATED: ‘The A-Team’ Producer’s Former SoCal Estate Lists for $20 Million
Working with husband-and-wife design team Scott Jarrell and Kristan Cunningham, Caruso set out to carefully preserve the original redwood walls and Douglas fir floors while adding a touch of artistic flair in keeping with the beach town’s heritage. Inspiration came from the warm and woody California home of the late sculptor J.B. Blunk, with pops of color and Japanese influences ranging from Shoji-style shutters to a huge vintage Noguchi lantern thrown in for good measure.
The result is a one-bedroom, one-bath house that’s as lovely as it is functional. It’s also classified as “Exceptional” by the Laguna Beach Historical Society and covered under the Mills Act, meaning there are significant property tax savings in exchange for preserving the historic appearance.

The lone bedroom comes with a corner workstation.
Hilly Collective
RELATED: A Rare Coastal Compound in SoCal’s Orange County Just Hit the Market for $50 Million
Expect to be charmed from the outset by the vermilion-hued structure, which sits on a triangular corner parcel fronted by a sprawling grassy lawn bordered by a picket fence. Sparking a second look is a brick patio alongside a soaring stone fireplace flanked by square stained-glass windows. Once inside, an ocean-view living area sports a tall sky-lit ceiling, a stone fireplace enhanced with a teal tile surround, and a tatami mat-clad sleeping nook. A dining area with a built-in banquette connects to a kitchen outfitted with a newer Viking range, while the single bedroom’s en suite bath has been updated with hand-painted copper finishes.
Per Architectural Digest, which featured the home in 2023, the designers went as far as stocking the house with all the necessary accoutrements. “We selected everything from the bedding to the bathroom essentials to the spatulas to the vacuum,” Cunningham said, “so that he’d be able to show up to a fully functioning home, right from the first visit.” The new owner will receive the same turnkey accommodations, as the dwelling is being sold fully furnished.
Click here for more photos of the Laguna Beach residence.

