JV Eyes SoCal Office-to-Resi Redevelopment
USA Properties and Irvine Community Land Trust will develop a roughly 150-unit, income-restricted community.
A joint venture between USA Properties and Irvine Community Land Trust plans to redevelop the 69,870-square-foot office building at 2400 Barranca Parkway in Irvine, Calif., into an affordable multifamily community.
The project will encompass roughly 150 units, William Hughes, executive director at Irvine Community Land Trust, told Multi-Housing News. The target affordability is contingent on the available financing and the crew explores LIHTC options, he added. However, Irvine Community Land Trust’s modeling shows the average median income will be under 50 percent.
Irvine’s 2045 General Plan calls for the addition of 57,656 new residential units—15,000 of them set to rise within the Greater Irvine Business Complex Area, where the redevelopment will take shape. The downtown area is about 2 miles away.
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Irvine Community Land Trust recently purchased the office building from Gemdale USA for $26.5 million. The company then teamed up with USA Properties for the redevelopment. Institutional Property Advisors, a division of Marcus & Millichap, brokered the deal on behalf of the seller and procured the buyer.
Institutional Property Advisors Executive Managing Directors Kevin Green and Gregory Harris, as well as Executive Director Joe Grabiec and Marcus & Millichap Mark DeGiorgio, represented the seller and procured the buyer.
Expanding Orange County’s affordable inventory
Orange County’s pipeline encompassed more than 8,600 units underway in February, according to Yardi Matrix data. However, only around 750 of those were within fully affordable developments.
Although affordable U.S. deliveries are set to reach a multi-year peak in 2025, Orange County appears to be bucking national trends. Should market conditions hold, the data provider expects about 380 affordable units to debut this year, as opposed to more than 670 such units in 2024.
Repurposing buildings into affordable housing isn’t new in Orange County. Last year, Jamboree Housing Corp. wrapped up the conversion of a former Budget Inn Motel into an 89-unit affordable community in Santa Ana, Calif.
