The developers looking to turn a nearly 21-acre parcel at Tustin Legacy into a retail and healthcare project appear to be getting a good price on the city-owned land.
An affiliate of Jacksonville, Fla.-based Regency Centers Corp. and a partnership headed by Newport Beach-based Hoag Memorial Hospital Presbyterian will pay a combined $18.8 million for the Tustin land, according to city documents.
The city chose Regency Centers, a shopping center owner and developer, to oversee the project more than a year ago, although a purchase price for the land was never disclosed.
Hoag’s involvement in the project, which is at the eastern edge of the former Marine base on Edinger Avenue, wasn’t disclosed until a few months ago.
The land is slated to hold a nearly 250,000-square foot development called the Village at Tustin Legacy. It will feature a 95,000-square-foot, grocery-store-anchored retail center likely to largely serve nearby residents, as well as a medical center that will be used by Hoag Memorial.
The $18.8 million purchase price factors in $10.5 million for the medical property land, as well as $8.3 million for the retail portion of the site, according to a disposition and development agreement filed in October between the developers and the city, which is overseeing the redevelopment of the former Marine base.
An additional $500,000 will be paid to the city when the largest retail tenants—a Stater Bros. grocery store and a CVS Pharmacy—open for business, according to the agreement.
About $10.3 million of the total purchase price is earmarked for backbone infrastructure work on the former base, city filings show.
Hoag and business partner SN Properties LLC are building a three-story medical center as part of the 150,000 square feet that will go up on its part of the land.
Construction is scheduled to start in the first quarter of next year, according to city filings.
The deal, which comes out to about $900,000 an acre, is well below recent per-acre prices in deals involving other developable land sites bordering Tustin Legacy.
Industrial, apartment and hotel developers in the past year have paid in excess of $2 million an acre for those sites, none of which are nearly as large as the Village at Tustin Legacy site, according to CoStar data.
SunCal Stadium?
Irvine-based SunCal Cos. is said to be ramping up its involvement with the Oakland Raiders as the football team looks at potential stadium sites in the state.
The master developer, which has several projects in process in Northern California, has been advising the Raiders in the team’s search for a new football stadium in Oakland for much of this year, according to local news reports.
Now SunCal is taking a bigger role and is “interested in being part” of a new stadium and any associated development that could be built on the east side of Oakland, city council officials told Bay Area reporters late last month.
The project’s viability remains to be seen. There’s a $400 million funding gap in the stadium project, and the city doesn’t want to use taxpayer money to pay for a stadium, according to recent report in the San Jose Mercury News.
The Raiders are also exploring a number of other sites across the state for a stadium, including Los Angeles.
Mark IV Buy
Newport Beach-based Mark IV Capital Inc. made a big investment in Colorado.
The investor paid $57 million for a 324,269-square-foot office project in the Denver-Boulder corridor, according to local news reports.
The acquisition of the three-building property, which is about 80% leased, nearly doubles the size of Mark IV’s Denver-area portfolio.
