By STEVE HERI and PETER GILLIN
The westside of Costa Mesa continues to transition from an industrial area to a mixed-use one with commercial and residential development.
While this process still is in its infancy, two projects are under construction and several others are in the planning stages.
Costa Mesa’s westside is a 1.4-square-mile area bounded by Newport Boulevard and Victoria Street. It historically has been home to manufacturers, auto shops and boat yards.
Last year the city of Costa Mesa took steps to revitalize the area, primarily by encouraging housing development.
One of the most notable projects is The Bungalows at Bay Street.
The development includes detached homes on a 3.8-acre site formerly home to the Daily Pilot building.
Another high-profile project is expected for Monrovia and West 17th Street, where Nexus Residential Communities is planning condominiums.
Many smaller sites that are suitable for residential development are being bought by local builders.
The large public homebuilders, who typically want to build on at least 5 acres, are having a difficult time finding land for larger projects.
Recent redevelopment activity on the westside has driven land prices higher. Most land sale deals have been in the $60- to $75-per-square-foot range.
Some parcels closer to the border with Newport Beach have sold for almost $100 per square foot.
The potential for future redevelopment is enormous, given the area’s proximity to Newport Beach, the Pacific Ocean and the city of Costa Mesa’s favorable view of homeownership.
There is a great deal of positive momentum on the westside of Costa Mesa, as it moves from industrial to mixed-use residential.
So expect to see more projects announced in the second half of the year.
Heri is a first vice president in the Anaheim office of CB Richard Ellis Group Inc. Gillin is an associate in CB Richard Ellis’ Anaheim office.
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