The federal government has tapped commercial brokerage firm CBRE to market the iconic Ziggurat building in Laguna Niguel for sale, calling it one of South Orange County’s largest redevelopment opportunities.
The pyramid-shaped Chet Holifield Federal Building is a 1-million-square-foot office on 92 acres at 24000 Avila Road. The government is seeking the highest “all-cash lump sum” offer by April 15.
“GSA is taking a targeted approach to reducing the bloated federal real estate portfolio,” Edward Forst, the administrator for the General Services Administration, said in a statement. “By eliminating long-term liabilities, including delinquent maintenance costs, we are saving taxpayer money, while focusing our limited resources on our core assets.”
This marks the latest federal government effort to unload the Ziggurat, which it has been trying to sell since the 1980s. A heated bidding war erupted in 2024 between Hoag Memorial Hospital Presbyterian and a smaller joint venture, Hilco Development Services and Pintar Investment Co.
The latter JV won the bid with a $177 million offer. However, that bid was cancelled, and the property was awarded to the next-highest bidder, Hoag, after the Newport Beach health system sued over the bidding process. The government subsequently cancelled the sale last year and planned to restart the auction for the property.
Hoag Hospital representatives declined to comment, and neither Pintar nor Hilco returned messages.
Property Value
Comparable land sales suggest a wide range of valuations.
A vacant acre in South Orange County sells for about $4 million to $5 million; while that price indicates the Ziggurat campus could be worth as much as $460 million, local brokers don’t expect the campus to fetch that price and might even be below the previous $177 million offer, due to entitlement risks.
The GSA hired CBRE to market the campus using an offering memorandum targeting investors and developers interested in redeveloping the site.
CBRE’s Vice Chair and Managing Director Anthony DeLorenzo, Western Regional Manager Brian Hutcherson, First Vice President Sammy Cemo, and Investment Sales Director Bryan Johnson are leading the sale.
The offering memorandum is available on the CBRE website.
What the Government Wants
The memorandum describes the site as a unique opportunity, noting its large parcel of land and its proximity to the I-5 Freeway and affluent coastal communities.
Buyers must pay a 5% non-refundable deposit within three days of signing, with the balance due in 60 days.
The campus includes not only the main office building but also a maintenance facility, an energy plant, a water reservoir, a cooling tower and security guardhouses.
Buyers must purchase as-is, with no due diligence period.
It’s widely expected that the buyer will tear down the Ziggurat.
“Imagine transforming a 90-acre iconic landmark into the beating heart of innovation and economic vitality,” the website reads. “This prime infill parcel, the largest development opportunity since the closure of MCAS El Toro, offers an unparalleled canvas for visionary end users to build a thriving ecosystem that drives growth, creates jobs, and fosters cutting-edge advancements.”
The CBRE team is hosting property tours of the site this month.
The offering materials suggest the property could be redeveloped into a mixed-use district with housing, offices, retail, or institutional uses, but any changes would need approval from the city of Laguna Niguel.
The site is currently zoned for office use.
Back on the Market Again
Architect William Pereira, who also designed the Transamerica Pyramid and UCI’s master plan, modeled the building on ancient ziggurats.
Rockwell International built the property in 1971 for its aeronautics division but never occupied the site.
The federal government acquired the property in the 1970s.
The massive complex once served as Orange County’s largest federal building, housing agencies like the Immigration and Naturalization Service, Internal Revenue Service, National Archives, U.S. Fish and Wildlife Service, U.S. Probation and Parole Service, Department of Defense, Railroad Retirement Board, and Social Security Administration.
The federal facility has been gradually vacated as the government shrinks its real estate footprint.
The Brutalist architecture building has long been seen as an eyesore by the federal government and was once called “the worst example of under-utilized federal property,” according to a 1988 article in the Los Angeles Times.
“The Ziggurat was such a drag on the General Services Administration’s budget that the agency sought a buyer. Although the building was appraised at $77 million in 1987, the top offer was $22 million,” the article said.
