U.S. General Services Administration
GSA Opens Bidding at $70 Million for Orange County’s Historic Chet Holifield Federal Building
92+ acre Laguna Ridge property now available in Laguna Niguel
SAN FRANCISCO — The U.S. General Services Administration (GSA) has opened the public auction for the roughly 92-acre Laguna Ridge federal property in Laguna Niguel, California. Known for its distinctive ziggurat-style architecture, the Chet Holifield Federal Building is one of Orange County’s most iconic structures, designed by renowned architect William L. Pereira.
The auction goes live this week on https://realestatesales.gov/gsaauctions/gsaauctions/, and bids will be accepted until the auction closes on Wednesday, July 31, 2024, at 11 a.m. CST. The starting bid is $70 million, and a $200,000 bid registration is required. Detailed terms and conditions can be found in the Invitation For Bids released on Nov. 29 and amended on May 31, to remove the reservation for federal tenancy after closing of the transaction.
“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.”
Kang emphasized the economic development opportunities the sale presents for Orange County, as it introduces potential for new tenants, businesses, and employment in the area.
Selling the Laguna Ridge property will help the federal government avoid over $300 million in long-term repair and upgrade costs. Since its last offering of the property, GSA has adjusted the sale requirements, removing the historic preservation covenant, allowing for a broader range of redevelopment options in collaboration with local communities and stakeholders. During the Spring of 2024, GSA and the City of Laguna Niguel hosted an interactive virtual webinar and an in-person real estate industry day. Property inspections and tours will be available by appointment through this summer.
Real estate brokers who secure registered bidders will receive a “finder’s fee” of 0.50 - 0.80% of the sale price, provided the high bid is accepted and the sale is closed with all funds received by the government.
Developers, investors, and potential buyers are encouraged to explore this opportunity. The Chet Holifield Federal Building, located about 4 miles from the Pacific coastline, sits between Alicia Parkway and La Paz Road at Avila Road. The property includes a large photovoltaic system producing over 1 million kWh of electricity annually, supporting building operations.
In addition to the 7-story federal office building (over 1.05 million gross square feet), the site includes a maintenance warehouse, a 500,000-gallon water tank for fire protection, an energy plant, a cooling tower, a 1-million-gallon thermal energy storage tank, security buildings, and a heliport. The property is surrounded by retail, office, and residential land uses and is easily accessible from local road networks, transportation facilities, and regional employment centers.
This property is part of the high-value round under the Federal Asset Sale and Transfer Act (FASTA - PL 114-287), with proceeds from sales funding further property sales and consolidation actions to save taxpayer funds.
For more information about the auction, visit gsa.gov/LagunaRidge or contact Chelsey Battaglia at 415-730-8093 or LagunaRidge@gsa.gov.
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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 over $100 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.