Looks like Zillow got confused by the “resale” for 390k in 2007, reinterpreted it as a teardown & rebuild? If you look at the pre-2007 zestimate curve and continue it smoothly, it gives you a value around 150k.
The area is basically a ghetto, from what I heard. Heavy gang activity. 8 robberies in the last month alone within a 1 mile radius.