Developer Kingsbarn Capital & Development is set to start construction on a 145-home residential community on an aging office park after receiving entitlements from the city.
The Tustin City Council had approved the project, known as Cypress Grove, in December.
“This approval reflects the city’s thoughtful approach to enabling housing that aligns with local needs while delivering meaningful community benefits,” John Stack, vice president and development manager at Kingsbarn, said in a statement.
The company did not provide any further comment.
The development cost was not provided. However, the current median active list price of a for-sale home in Tustin is $1.2 million, according to Reports on Housing, a data site that tracks Orange County residential real estate.
The Need for Housing
The approval marks a key milestone for the Las Vegas-based Kingsbarn as it prepares to deliver much-needed housing in Tustin and Orange County.
Tustin’s Regional Housing Needs Allocation (RHNA) for the 2021–2029 period is 6,782 new residential units, with about 3,900, or 57%, reserved for moderate- and low-income residents.
The project plan calls for the demolition of the Tustin Financial Plaza, a 185,000-square-foot office complex at 17782 E. 17th St., built more than 50 years ago.
A joint venture of Kingsbarn and The Kelemen Company acquired the building from Sagard Real Estate for $27.5 million, or $148.65 per square foot in 2024.
The project is also part of Tustin’s plan to redevelop aging, underutilized office parks and other commercial properties into a walkable residential community, as cities look to balance growth, housing demand and economic development.
Campo on 17th, another 100-unit condominium project that is part of a much larger mixed-use redevelopment, is currently in the city’s planning pipeline.
Additionally, the city earlier this month selected retail developer Dan Almquist of San Juan Capistrano-based Almquist to acquire and redevelop a vacant 52-acre parcel with experiential retail and housing next to the FLIGHT office campus.
Cypress Grove
Kingsbarn officials said they plan to begin construction this summer.
Cypress Grove community will feature 62 three-story detached homes and 83 three-story townhomes, blending architectural styles that include Spanish-inspired townhomes and single-family designs such as farmhouse, Craftsman and traditional styles, officials said in a news release.
Officials also plan to build a central park spanning roughly a quarter-acre that’ll anchor the neighborhood, alongside more than 46,000 square feet of open space and an additional 41,000 square feet of landscaped paseos and courtyards.
Beyond housing, the project aims to improve connectivity in the area, including a new off-street bike path along 17th Street, updated traffic circulation at the Prospect Avenue intersection, and pedestrian-oriented designs to create a more walkable neighborhood.
