The City of Irvine is investing nearly $20M for real estate near John Wayne Airport, the first step in a plan – or at least the concept of a plan – to combat homelessness.
Its City Council last week, in a 4-1 vote, approved the upcoming purchase of two buildings along Armstrong Avenue in the IBC, which would be used as a bridge housing shelter, serving both Irvine’s homeless and those at risk of homelessness.
The properties, part of a 3-building complex previously used by high-end clothing manufacturer St. John Knits as its base before its recent move to Anaheim, would mark the city’s first homeless shelter.
Beyond the terms of the $18.5M purchase and an additional $1.5M spent on other related transaction costs, specific details on the facility – which the city dubs The Sanctuary – are scarce.
The number of beds the city expects to have on site, the number of staff needed, and total funds needed to redevelop the late 1960s-era buildings into a viable shelter haven’t been disclosed.
City Manager Oliver Chi said that the city has “north of $40M” in restricted funds that could be earmarked for its efforts, and that other state funding sources will be tapped going forward.
City officials said details of its comprehensive, health-and-wellness focused plan – which it calls The System – to tackle rising homelessness in the area will be made public in the coming months.
Staff is being hired in expectation of a program launch in December.
The plan aims to be “a first-of-its-kind model that has not been deployed in other locations,” city filings note.
“Seems like you’re putting the cart before the horse,” commented one concerned resident at the lightly attended City Council hearing, questioning the rush to buy the Armstrong Avenue properties without a concrete strategy in place. The Oct. 22 hearing was the first time the real estate purchase has been publicly discussed.
Councilmember Mike Carroll, the lone ‘no’ vote last week, noted the “extreme” quick closing for the buildings, due to take place early next month, and questioned the lack of outreach to businesses and residents close to the two buildings.
“I think we’re getting a good price” for the pair of Armstrong Avenue buildings, which total about 47,000 SF, said Irvine councilmember Larry Agran.
The deal works out to a price of $402 PSF for the office and industrial buildings, with the 3.66-acre site trading for a little more than $5M an acre.
A larger, nearly 100K-SF manufacturing building also previously used by St. John Knits that’s next door to the city’s two buildings is currently listed for sale at $235 PSF, according to CoStar records.
A city-commissioned appraisal earlier this year done by CBRE noted that land in the IBC was trading for $4.2M an acre.
The deal comes on the heels of the city approving the nearly $100M purchase of a new badminton facility elsewhere in the IBC, a deal that works out to nearly $880 PSF just for the shell of the building.
