GSA invites investors, starts bidding at $70 Million for Orange County’s Historic Chet Holifield Federal Building
89+ acre Laguna Ridge property now available in Laguna Niguel
SAN FRANCISCO -- The U.S. General Services Administration (GSA) has announced public auction details for the sale of the 89-acre Laguna Ridge federal property in Laguna Niguel, Calif. With its unique ziggurat-style architecture, the Chet Holifield Federal Building is one of Orange County’s largest and most easily recognizable buildings and was designed by William L. Pereira, architect of San Francisco’s renowned Transamerica Pyramid.
The property will be sold via an online auction at RealEstateSales.gov. The online auction will begin June 5. Each bidder is required to submit a bid registration of $200,000 and the minimum starting bid is $70 million. Specific terms and conditions are available in the invitation for bids released Wednesday, Nov. 29.
“Disposing of underutilized and unneeded federal properties is important for helping us support local communities and save taxpayer dollars,” said Sukhee Kang, Regional Administrator for GSA’s Pacific Rim Region. “As agencies’ space requirements continue to evolve, GSA’s commitment is to optimize and right-size the federal real estate portfolio.”
Selling this property will result in a cost avoidance to the federal government of almost $341 million, because GSA will no longer need to make long-term repairs or upgrades to the facility.
“The sale of this land in Laguna Niguel creates an economic development opportunity in Orange County while generating proceeds for the U.S. taxpayer,” added Kang. “We hope that it will serve as a catalyst for economic development in the surrounding area by introducing new tenants, businesses, and employment to the area.”
GSA is returning the property to market after adjusting the requirements of the sale. A historic preservation covenant is no longer required as part of the transaction, so a purchaser may consider a wider range of redevelopment options in working with the local community and stakeholders. An interactive virtual webinar and in-person real estate industry day will be hosted by GSA and the City of Laguna Niguel in March 2024. Laguna Ridge will also be available for inspection by appointment for scheduled tours in Spring 2024.
The real estate broker that secures the registered bidder shall receive a “finder’s fee,” in the event the bidder’s high bid is accepted and the sale is closed with all funds being received by the government. The real estate broker shall receive a “finder’s fee” consisting of 0.50 - 0.80% of the sale price.
GSA encourages developers, investors, and other potential buyers to consider this opportunity. The Chet Holifield Federal Building, also known as the Laguna Ridge property, is located in Laguna Niguel, approximately 4 miles from the Pacific coastline. The parcel is located between Alicia Parkway and La Paz Road at the Avila Road cross street. It is also the site of a large photovoltaic system that produces over 1 million kWh of electricity per year to support building operations.
The building is currently partially occupied by the California Service Center for U.S. Citizenship and Immigration Services, Internal Revenue Service, U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement with plans in progress and leases in place to move all federal tenants to other locations.
In addition to the 7-story (1.05 million+ gross square feet) federal office building, other buildings on the site include: a maintenance warehouse; a 500,000-gallon water tank that services the fire protection system; an energy plant; a cooling tower; a 1-million-gallon thermal energy storage tank; and security buildings. A heliport is located on the site and additional landscaped areas are throughout the large parcel.
This prime property is surrounded by a mix of retail, small office, and residential land uses, and is highly accessible from local road and highway networks, transportation facilities and regional employment centers.
This property was identified as one of the properties for the high-value round under the Federal Asset Sale and Transfer Act (FASTA - PL 114-287). Under the FASTA legislation, proceeds from property sales in the high-value round will be used to fund further potential sales of unneeded federal property and consolidation actions to save taxpayer funds.
About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing about $87 billion in products and services via federal contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best 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.