News Summary
The U.S. General Services Administration (GSA) has officially canceled the online auction for the Laguna Ridge property, including the Ziggurat building. The GSA plans to restart the bidding process later in May after terminating a previous deal with Hilco Development Services. Notably, the property drew significant interest previously with a high bid of $173.4 million. This decision marks a strategic shift aimed at increasing investor engagement for this major development opportunity in south Orange County.
Laguna Niguel, California – The U.S. General Services Administration (GSA) has officially canceled the online auction for the Laguna Ridge property, which includes the prominent Ziggurat building. This decision was announced on a Wednesday, and the GSA plans to restart the bidding process later in May with a new auction.
Registered bidders were informed that the property, spanning 92 acres, would not be sold under the previously issued solicitation. The GSA has indicated its intention to relist the property, and a new solicitation is expected to be issued in late May. This announcement follows a recent termination of a deal involving Hilco Development Services, which had been selected as the winning bidder for the property a short time ago.
The Laguna Ridge property, highlighted by the Ziggurat structure, has seen a significant surge in bidding activity during the previous auction, which began on June 5 and was initially set to close on July 31, 2023. The auction drew a total of 144 bids over a span of 55 days, with the highest bid reaching $173.4 million, up from the original asking price of $70 million. This substantial increase in bids showcased a high level of interest among participants, including three unidentified bidders labeled as “Bidder #01,” “Bidder #02,” and “Bidder #03.” Many of these bids came in increments of $300,000, particularly in the final hours leading to bidding deadlines, extending the auction time.
The GSA’s move to cancel the auction is significant, especially considering it comes just weeks after the federal agency awarded the property to Hoag Memorial Hospital Presbyterian, following a legal challenge by the hospital regarding the auction process. Despite the GSA’s announcement, Hoag Memorial Hospital has yet to provide a comment about this cancellation.
The Laguna Ridge property is home to not just the striking Ziggurat but also the Chet Holifield Federal Building, a notable Brutalist structure that was completed in 1971. The federal government acquired this building in 1974, and it has played a key role in the housing of thousands of federal employees from various agencies over the decades.
Prior to the recent auction, late 2022 saw a failed auction for the property, where there were no bidders due to restrictions that mandated the preservation of the Ziggurat building. The current decision not to enforce preservation requirements in the latest auction could explain the heightened interest from investors, as recent studies and recommendations for development have suggested the potential for building between 2,000 and 4,000 homes on the property.
As this situation unfolds, the outcome of the upcoming auction will be closely watched, representing a rare large-scale development opportunity in south Orange County. The GSA’s actions indicate a shift in strategy aimed at bolstering investor interest and ensuring a viable path forward for the sale of this significant property.
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Additional Resources
- Orange County Business Journal: GSA Cancels Sale of Ziggurat Building to Hoag Hospital
- Wikipedia: Laguna Niguel, California
- OC Register: 41st Late Bid Pushes Laguna Niguel’s Ziggurat Auction Past $173 Million
- Google Search: Laguna Niguel Ziggurat building
- The Real Deal: Auction Price of Ziggurat in Laguna Niguel Climbs to $164M
- Encyclopedia Britannica: Laguna Niguel
- Daily News: Bid 5 Minutes Before Deadline Ups Laguna Niguel’s Ziggurat Price Past $167 Million
- Google News: Ziggurat Laguna Niguel
- Patch: Iconic Ziggurat Building in Laguna Niguel Sold for $177M
