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Lehman Lists Stalled SJC Home Development for Sale

Pacifica San Juan, a stalled new home development just off the San Diego (I-5) Freeway in San Juan Capistrano, is on the market for sale and could fetch a big price.

Lehman Brothers Holdings Inc. recently listed the 318-lot development, which is being marketed by brokers in the Irvine office of Land Advisors Organization.

The 194-acre property is expected to hold six product lines ranging from small attached lots to estate lots with ocean views, as well as a 7.3-acre school site.

A recent report by the Wall Street Journal put an expected price for the sale at $150 million or more. Offers are expected to come in early October.

The partially built development was previously run by Irvine-based developer SunCal Cos. but was turned over to one-time partner Lehman Bros. in 2012, as was the 196-acre Marblehead Coastal project in San Clemente that sold this year to Taylor Morrison Home Corp. for about $205 million.

Home construction at Marblehead could start next year. Steel is now going up for the retail portion of the nearly 580,000-square-foot outlet center on another 52 acres at the site, which is being developed by Craig Realty Group in Newport Beach.

SRG Surge

The multifamily division of Irvine-based developer Sares-Regis Group has picked up a pair of out-of-town apartment complexes totaling 300 units and is moving ahead on a 520-unit development in its hometown.

A multifamily investment fund launched last year by the privately held company bought the 198-unit Westview Heights complex in Portland, Ore., and a 102-unit complex called Alta Vista in San Diego County’s Escondido.

Terms of the Portland sale were undisclosed. Local reports put a price tag of $23.8 million, or $233,000 per unit, on the Escondido purchase.

Both acquisitions were funded from a $114 million multifamily fund Sares-Regis is using to buy upward of $300 million in West Coast apartment properties.

In Irvine, a development called Vireo planned by the company at the Park Place mixed-use campus is moving ahead. The company recently filed plans with the city’s planning commission for the 5.2-acre development, which would be on Michelson Drive and hold about 780 residents.

Sares-Regis bought the land for the development this year from Irvine-based LBA Realty for an undisclosed price.

Tower Flip

An affiliate of KBS Realty Advisors in Newport Beach has put the 646,625-square-foot Union Bank Plaza office tower in downtown Los Angeles up for sale.

The 40-story building, which is nearly fully leased, is expected to fetch a price close to $260 million, or about $400 per square foot, according to real estate sources.

Brokers with the Los Angeles office of JLL have the listing.

A nontraded real estate investment trust headed by KBS paid a reported $208 million for the tower in 2010.

The company’s KBS Real Estate Investment Trust II, which owns the Los Angeles building, has also been selling for sizable profits towers it bought around the same time in markets such as Chicago, Houston, and West Palm Beach, Fla.

Union Bank Plaza is at 445 S. Figueroa St. near the Harbor (110) Freeway. Union Bank occupies more than half of it.

Shea Sells

Two buildings at Shea Properties’ Town Center Corporate Park office campus in Aliso Viejo have sold to investors for a combined $14 million.

Roosevelt Capital Partnership paid nearly $200 per square foot, or $6.7 million, to buy 26940 Aliso Viejo Parkway, a 33,915-square-foot building at the campus. AVM Investment Group paid roughly $185 per square foot, or $7.2 million, for a 38,716-square-foot office at 26970 Aliso Viejo Parkway.

Both buildings were built by Aliso Viejo-based Shea as part of the developer’s four-building campus at Aliso Viejo Parkway and Pacific Park Drive. Shea previously sold the other two buildings at the multitenant office campus.

The two sales were brokered by PM Realty Group’s Tim Joyce and Gary Allen, and Doug Matthews of Newmark Grubb Knight Frank.

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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