GSA Sells Former Chet Holifield Federal Building in Southern California

Sale of underutilized federal real estate delivers revenue, savings to the American taxpayer

LAGUNA NIGUEL, Calif. — Today, the U.S. General Services Administration (GSA) announced the sale and transfer of the former Chet Holifield Federal Building in Laguna Niguel to Laguna Ridge Health Care Development, LLC, an affiliate of Hoag Memorial Hospital Presbyterian, a local, not-for-profit health care provider in Orange County. The sale, as marketed by CBRE, marks a significant milestone in GSA’s broader effort to eliminate underutilized federal buildings, reduce long-term liabilities, and transition aging assets into productive private-sector use.

“GSA continues to deliver on President Trump’s goal of eliminating costly, vacant properties from the federal real estate portfolio,” said GSA Administrator Edward C. Forst. “The sale of the former Chet Holifield Federal Building generated over $207 million in revenue and saved American taxpayers more than $340 million in long-term repair and upgrade costs.”

The sale is among the largest redevelopment site sales in Orange County history and is one of the largest in Southern California in the past decade.

“We appreciate the work that went into this process and are honored to be the steward of the Laguna Ridge Property going forward,” said Robert Braithwaite, CEO, Hoag Memorial Hospital Presbyterian. “We are committed to a thoughtful, long-term approach which will enable Hoag to better serve the residents and businesses of south Orange County.”

The 1-million-square-foot former Chet Holifield Federal Building, also known as the “Ziggurat,” sits on 89 acres in highly desirable southern Orange County. When constructed in 1971, the building was the only property in the area. By 2020, the population had swelled to 65,000 and William Perreira’s towering, stepped pyramid had become iconic in Southern California. While the new owner will have flexibility in their redevelopment of this building, the GSA crafted an agreement as part of the sale to ensure that William Perreira’s legacy would be honored.

“The robust buyer interest in this iconic building underscores the immense value of such a substantial asset in a highly sought-after market,” said Chris Connelly, CBRE Executive Group President of Advisory Services in the U.S. and Canada. “Our team at CBRE was privileged to collaborate closely with the U.S. General Services Administration, navigating the unique aspects of a federal sale to achieve a highly successful result benefiting both the local community and the nation’s taxpayers.”

This sale comes on the heels of other high-profile federal real estate sales across the United States, saving taxpayers millions in delinquent maintenance costs. It reflects GSA’s broader effort to eliminate underutilized federal buildings, reduce long-term liabilities, and transition aging assets into productive private-sector use.

In addition to the sale of this property, GSA has listed other buildings for potential disposal to ensure taxpayers no longer pay for underutilized federal office space. GSA projects that the sale of these buildings will eliminate $5 billion in delinquent maintenance and annual operating costs.

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About GSA: GSA provides centralized procurement and shared services for the federal government. GSA manages a nationwide real estate portfolio of approximately 360 million rentable square feet, oversees more than $126 billion in products and services via federal contracts, and delivers technology services to millions of people across dozens of federal agencies. GSA’s mission is to deliver exceptional customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.