In 1887 he moved to Los Angeles, California, and eventually built a 24,000 sq. ft. (2,230 m2) home in Pasadena. He opened several ice-making plants and founded Citizen's Bank of Los Angeles. Lowe was introduced to David J. Macpherson, a civil engineer, who had drawn up plans for a scenic mountain railroad. In 1891 they incorporated the Pasadena & Mount Wilson Railroad Co. and began the construction of what would become the Mount Lowe Railway into the hills above Altadena. The railway opened on July 4, 1893, and was met with quick interest and success. Lowe continued construction toward Oak Mountain, renamed Mount Lowe, at an exhausting rate, both physically and financially. By 1899 Lowe had gone into receivership and eventually lost the railway to Jared S. Torrance. Lowe's fortunes had been all but lost, and he lived out his remaining days at his daughter's home in Pasadena, where he died at age 80.