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High drama involving developers, a large hospital and the federal government is unfolding as a drastic and sudden shift has occurred for control of one of the largest pieces of prime real estate in South Orange County.
Newport Beach-based Hoag Memorial Hospital Presbyterian confirmed to the Business Journal it was selected to complete the purchase of the 92-acre Ziggurat facility in Laguna Niguel, securing its desires to expand its footprint in South OC.
“The General Services Administration has awarded the Laguna Ridge auction to Hoag,” Hoag CEO Robert Braithwaite told the Business Journal last week.
“We are thrilled at the prospect of moving forward and the potential this opportunity holds for Laguna Niguel and surrounding communities.”
The news has set off what may become a long legal battle that apparently has split the original winning bidders and called into question whether they would lose their $17.7 million deposit on the $177 million property.
Last October, Hoag lost a dramatic four-month long bidding war for the property, also known as the Chet Holifield Federal Building, to Hilco Development Services. It was later revealed that Signal Hill-based Hilco was working in tandem with San Juan Capistrano-based Pintar Investment Co.
Both Hilco founder Cameron Hildreth and Pintar founder Jeff Pintar appeared together at the Business Journal in January to discuss the acquisition, presenting their work as a joint venture called Laguna Ridge Partners LLC, which was formed on Nov. 18. Its address matches Pintar Investment’s.
But soon after losing the auction, Hoag filed a federal lawsuit alleging misconduct by Pintar during the bidding process. That suit, filed against the federal agency that managed the property, was dismissed soon after Hilco’s bid was canceled and awarded to Hoag last month.
Now, Hilco appears to be distancing itself from its financial partner.
“Hilco was the winning bidder – not Pintar,” a Hilco spokesman told the Business Journal.
When Pintar was reached last week, he texted, “Sorry, I cannot talk right now.”
A Hoag spokesperson said its officials didn’t make any deals with the original winning bidders.
A Challenge to Hoag
Hilco on April 2 said the company would “challenge” the U.S. General Services Administration’s decision to award the Ziggurat property to Hoag, according to a statement.
“Hilco Development Services is confident that, ultimately, the GSA will be held to its original determination – namely that Hilco is the winning bidder, and that a sale to Hilco is in the public interest,” Hilco attorney Todd Theodora said in a statement. “Hilco remains committed to maintaining a transparent and fair process as they’ve done throughout the entire auction.”
Theodora, founder of the Theodora Oringher law firm, which has an office in Costa Mesa, is a well-known litigator in legal circles.
He’s best known for representing the Los Angeles Angels, particularly defending the baseball team in a civil case brought by the family of deceased pitcher Tyler Skaggs.
Theodora also represented Arte Moreno in successfully arguing in favor of his baseball team being allowed to name itself the “Los Angeles Angels of Anaheim.”
Hoag Moving in on Ziggurat
Braithwaite has previously said the hospital’s ultimate plan is to have one of its healthcare facilities within 10 minutes of every Orange County household.
It already has clinics in Trabuco Canyon, Foothill Ranch and Dana Point. It plans to open a $20 million clinic in San Clemente in July.
Hoag had been muted on its bid for the Ziggurat, declining to comment until March 31 when CEO Braitwaite confirmed it will control the 92-acre site.
Yet, Hoag’s determination in expanding into southern Orange County was underscored by taking part in a process that involved 157 bids over 141 days.
In the suit filed against the GSA in November, Orange County’s second-largest hospital system alleged that Pintar tried inappropriately to strike a deal with Hoag officials during the bidding.
On March 10, the GSA formally rescinded its $177 million deal with the Hilco-Pintar team. Hoag then asked a federal judge to dismiss its lawsuit, which occurred on March 20.
Traci Washington, a communications supervisor for the GSA, previously told the Business Journal the $17.7 million deposit Hildreth and Pintar paid after winning the auction last year would be forfeited if the Hilco-Pintar team failed to complete payment on the $177 million winning bid.
Escrow was scheduled to close around April 24. Pintar earlier this year told the Business Journal that he would be able to pay the remaining $160 million by the deadline.
Washington, in an email to the Business Journal last week, said the Chet Holifield building is not yet out of federal ownership.
No reasons were yet given as to why GSA revoked the Hilco-Pintar winning bid and instead awarded the property to Hoag.
Hoag last week declined to discuss its plans for the property, saying that “at this time, we do not have any further statements on this transaction.”
Neither Hoag nor the GSA revealed how much the hospital system would pay the federal government for the 92-acre property.
Let the Battle Begin
The battle pits well-known Hoag, which reported $1.7 billion in revenue for the year ended Sept. 30, against two relatively unknown developers.
The chairman of Hoag is Robert Brunswick, who co-founded Buchanan Street Partners, a Newport Beach-based real estate investment management firm that has invested in over $8 billion of real estate debt and equity investments.
Pintar, who began his company in 2009, on his LinkedIn page last November said the firm manages 3,500 single-family homes throughout the U.S. valued at more than $500 million. The firm in the last five years has invested more than $2 billion on behalf of its investors, delivering returns of more than 25%, Pintar said on his LinkedIn page.
Hildreth, who was 33 years old last November, started his construction career in high school, including as an apprentice carpenter. He formed his company in 2017, focusing on individual construction projects. He’s recently expanded into larger developments such as a $24.3 million “office condo” project in Costa Mesa that is on the verge of completion.
Hildreth did not respond this past week to multiple requests for comments.
His legal team said the framework for its planned challenge against the federal agency would be based on Hilco’s formal reply to Hoag’s November 2024 lawsuit.
The Hilco filing denied Hoag’s allegations of price fixing or other “anticompetitive behavior.”
“Hoag brought all of its concerns to the seller… and they looked into them, and correctly determined that allegations are of no merit,” according to Hilco’s response. “Ironically, the only activities before the court, which can be fairly characterized as ‘unfair’ are the actions of Hoag. Specifically, even though Hoag was not the highest bidder, they are seeking a second bite at the apple after the auction closed.”
Pintar, in a separate declaration filed in response to the Hoag lawsuit, offered his explanation of communications he had with Hoag officials.
“At no time when I spoke with Mr. Brunswick did he indicate that I, in any way, crossed the line,” Pintar said in his declaration. “He thanked me for the call and emphasized that we might be able to work together in the future if Hoag won or my company won the bid… I am aware of no conversations, communications or exchanges that in any way affected the bids, the bidding process or the sale price.’’
“I have at all times acted properly and respectfully and upheld the fairness of the bidding process,” Pintar’s declaration continued.
Hilco, with its planned challenge, is aiming to be reinstated as the auction winner.
“Rescinding our bid is wholly unjustified,” Theodora said in his statement. “With both Hilco and the GSA opposing Hoag’s claims in court, there is no rational basis for the recent decision to terminate Hilco’s status as the winning bidder. We are confident Hilco will be reinstated as the winning bidder, which offers the greatest benefit to taxpayers.”