Uncertainty over the long-term future of Angel Stadium as the centerpiece of Anaheim’s Platinum Triangle hasn’t stopped apartment developers from pushing ahead with new projects in the area.
That’s not necessarily the case for other long-awaited developments there. Retail, office and for-sale housing projects will likely be delayed until Arte Moreno, the boss of the baseball team that calls the stadium home, reaches a deal to keep his Angels in Anaheim or move elsewhere (see related OC 50 entry for Moreno in Special Report that starts on page 15).
Apartments look to remain hot in any case. Nearly 1,400 units could be under construction in the Platinum Triangle by the end of summer, according to multifamily developers in the area, as well as brokerage data.
That would follow a wave of more than 2,500 rental units that have opened over the past six years or so in the area, which has been the primary source of commercial development there over that time.
Among projects now on the fast track in the Platinum Triangle is the second phase of the Gateway Apartment Homes development on Orangewood Avenue.
Irvine Company
Newport Beach-based Irvine Company is in the process of tearing down older industrial properties to get the site prepared to build the next phase of the Gateway project (see related OC 50 profiles for Donald Bren, Dan Young in Special Report).
Irvine Co. bought the initial, 884-unit Gateway complex in 2010, making its first investment in the immediate area. The developer expects to break ground in June on the 395-unit second phase of the project, which is just north of the Santa Ana (I-5) Freeway on the Orange and Anaheim city line.
Irvine Co. executives anticipate an early-2016 opening for the 6.2-acre project and said the long-term status of the Angels at the nearby baseball stadium hasn’t affected their decision to move the 395-unit development ahead.
A trio of nearby apartment projects also appear fast-tracked for construction on East Katella Avenue, just west of Angel Stadium.
The newest apartment investor appears to be Moorpark-based Dansk Investment Group Inc. An LLC tied to Dansk recently completed the purchase of a nearly 3-acre parcel of undeveloped land at 1331 E. Katella for about $10 million, according to brokerage data.
The site is expected to be the second phase of construction for the Vivere apartment complex and will hold 244 units. The first phase opened in 2011 with 92 apartments.
A partnership headed by Los Angeles-based Urban Partners LLC bought the initial Vivere complex and the development site near the end of 2012 for a combined $38 million, according to brokerage data.
Dansk is expected to break ground on the second phase before summer ends, according to CoStar Group Inc. records.
Appraisal Out
The latest batch of apartment projects comes during the most unsettled period at the Platinum Triangle since the Great Recession forced developers to scale down ambitious high-rise residential and office projects in the area and abandon others altogether.
At stake now are the future development plans for the city-owned 154.6-acre site of Angel Stadium and its surrounding parking lots.
The Angels have a ground lease for the stadium that runs until 2029, but hold an option of ending the lease between 2016 to 2019.
The Anaheim City Council last fall approved the outline of a plan that would keep the Angels at the stadium under a long-term deal in exchange for the team spending up to $150 million to improve the facility.
The team would in turn get development rights for the surface parking lots surrounding the stadium.
Tustin, Irvine
The city and the team—which wants rights to develop the parking lots for $1 a year for 66 years—have since argued over terms of the deal and blamed each other for making changes to it. The Angels have reportedly held early-stage discussions with other cities, including Irvine and Tustin, about a potential relocation.
The latest chapter in the negotiations took place this month when Anaheim released a nearly 700-page appraisal of the city-owned land performed by El Segundo-based Waronzof Associates.
The results of the appraisal placed a $225 million value on the land if the Angels and the stadium remain. The value would rise to $325 million, according to the appraisal, if the team leaves and the stadium is demolished.
The 156-acre site is entitled for 5,175 homes or apartments, 3.1 million square feet of office development, and 3.1 million square feet of commercial space. The land has a tax-assessed value of about $92.4 million.
Retail
If the Angels remain, the appraisal suggests building about 290,000 square feet of entertainment-related retail near the north edge of the stadium, along with a separate, 120,000-square-foot community retail center on the south side of the property that would largely serve area residents.
Another 750,000 square feet of offices could also be eventually built once the condition of the market warrants development, according to the appraisal. It recommends that no more than one-third of the housing built on the property should be rentals, due to the amount of apartments already built or planned in the vicinity.
The appraisal suggests the total amount of development in the area could be bumped up from 4.9 million square feet to 6.1 million if the Angles left and the stadium were demolished. It recommends more for-sale residential at the site under those circumstances, particularly townhomes and condos, along with some high-rise condos for a portion of the land.
“With or without the stadium structure, we believe the highest and best use of the site is achieved with a largely medium-density residential development, with both retail and office development located on the northern portion of the site,” according to the appraisal.
Large master developers, including Aliso Viejo-based FivePoint Communities; Starwood Capital Group in Greenwich, Conn.; and Cleveland-based Forest City Enterprises, are cited as potential buyers of the land from the city, according to the report.
