politics
Federal Agency Sells 89-Acre California Property for $207 Million
The General Services Administration sold a vacant federal building in Laguna Niguel to a hospital affiliate. The transaction generated revenue and eliminated future maintenance costs for the government.
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The General Services Administration sold an 89-acre federal property in Southern California on Wednesday for more than $207 million. The buyer is Laguna Ridge Health Care Development, an affiliate of Hoag Memorial Hospital Presbyterian. The site includes the former Chet Holifield Federal Building, a more than 1 million-square-foot structure completed in 1971.
The building had housed the IRS and the Department of Homeland Security before it was vacated at the end of 2024.
GSA said the sale will produce more than $207 million in revenue and spare taxpayers an estimated $340 million in long-term repair and modernization costs. The agreement requires the new owner to preserve the building's architectural features designed by William Pereira.
GSA Administrator Edward Forst said the transaction advances efforts to remove vacant properties from the federal real estate portfolio. Hoag CEO Robert Braithwaite said the hospital system will take a long-term approach to redevelopment that serves residents and businesses in south Orange County.
The sale is part of a list of 11 federal properties approved for disposal last year. Officials said that list could save taxpayers roughly $5 billion in deferred maintenance costs.
