SELLING EL TORO
Meeting to Inform Potential Developers on Former El Toro Marine Base Bid Process
By MATHEW PADILLA
The long process of drumming up interest for the sale of 3,500 acres of former El Toro Marine base land kicks off next week.
That’s when the U.S. Navy and listing broker Colliers Seeley International Inc. plan to hold an informational forum.
The meeting is set for April 28 at the former base.
The U.S. Navy, which is selling the land, hopes to attract residential and commercial developers, as well as golf course developers and even investors in agricultural property.
Colliers Seeley was hired by the U.S. General Services Administration, which is responsible for running the online land auction for the Navy.
Among those giving presentations at the 10 a.m. meeting: Navy and General Services officials, U.S. Rep. Christopher Cox (R-Newport Beach) and city of Irvine officials.
The actual bidding will take place over the Internet this fall.
The process is sure to attract both dominant local players and even some overseas buyers, according to Patrick Remolacio, senior vice president with Colliers Seeley.
“We expect the bidding to top $1 billion,” Remolacio said.
He said bidders likely will include large mixed-use developers as well as alliances of several developers specializing in different areas.
The 3,542 acres will be sold in four parcels. The largest parcel will be 1,678 acres, with others being 885 acres, 775 acres and 204 acres.
Miami-based Lennar Corp. has led the pack of developers going after former base land in California.
The company, in partnership with Newport Beach-based William Lyon Homes, picked up three parcels of the former Tustin base.
Lennar’s other state projects include the Navy’s Mare Island base in Vallejo, where it is masterdeveloper with partner,and spinoff,LNR Property Corp.
Emile Haddad, regional president of Lennar Corp., said he expects his company will attend the meeting later this month and will be among the bidders this fall.
Any bids must incorporate some $200 million in development fees that will have to paid to the city of Irvine. That figure is based on the full 3,500 acres.
“I don’t know how many players can cut a big check like that,” Haddad said.
And that’s not all. The city has stated previously that infrastructure and other improvement costs could come to about $350 million.
Part of the 3,500 acres must be set aside for open space.
Irvine Mayor Larry Agran has touted the city’s plan for a Great Park on the former base that would come at no cost to taxpayers, being financed by the developer fees and future property tax assessments.
The Great Park will not be all park, but could include 3,400 homes, 28 acres of retail property, 800 senior housing units and 2,700 acres of open space, according to Irvine’s plans.
During the April 28 meeting, interested buyers can ask questions regarding bidder support services, the online process and property entitlements.
Attendees also can take a self-guided tour of the property.
Attendance is free, and registration can be done at www.crefg.com.
