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In yet another twist surrounding the sale of the iconic Ziggurat building in Laguna Niguel, the U.S. General Services Administration abruptly canceled last week its high-profile online auction of the 92-acre site. The agency now says it will relaunch the bidding process later this month.
“The U.S. General Services Administration announced the cancellation of the recent online auction of the Laguna Ridge property in Laguna Niguel,” the agency said in a May 7 statement. The stunning move comes less than two months after the GSA terminated a prior deal with Hilco Development Services and its investment partner, Jeff Pintar of San Juan Capistrano-based Pintar Investment Co., who were declared the winning bidders last year. The agency instead awarded the property to Hoag Memorial Hospital Presbyterian in late March following a legal challenge filed by the hospital.
“Registered bidders have been notified that the property will not be sold under the previously issued solicitation,” the federal agency said. “GSA intends to relist the property for sale and expects to issue a new solicitation in late May.” GSA officials did not state why the auction was canceled.
Development Dreams Dashed
After undisclosed bidders went back-and-forth bidding almost every day for more than four months, the 92-acre property sold for $177 million in late October. The site, home to the Chet Holifield Federal Building, is one of the few remaining prime parcels of real estate in South Orange County. The development of homes, retail and medical offices could cost billions of dollars.
Pintar, along with Hilco founder Cameron Hildreth—the initial winning bidders—had envisioned tearing down the federal building and replacing it with a mixed-use development. But that vision came to a halt in March when the GSA terminated their win and awarded the Ziggurat property to Hoag, which has desires to expand its south OC footprint.
It’s unclear if both parties plan to bid again. “We are disappointed to learn that the previously anticipated purchase of the Laguna Ridge property is no longer proceeding as expected,” a Hoag spokesperson told the Business Journal in an email. “While we respect government processes, Hoag is reviewing the decision and working to better understand what next steps might follow. Hoag remains committed to expanding access to high-quality health care in South Orange County.”
Hilco Development did not return a request for comment.
Hoag Sued After Coming in Second Place
After losing the bid last year, Hoag—Orange County’s second-largest hospital system—sued the GSA, accusing Jeff Pintar of colluding in direct violation of auction rules. In the November lawsuit, Hoag claimed Pintar contacted the hospital multiple times in an attempt to strike a side deal.
“Pintar asked if Hoag wished to ‘work together instead of against each other,’ and invited Hoag to ‘sit and make a deal’ to bring the auction to an end,” according to the complaint. “Hoag, realizing the impropriety of the collusion request, refused the improper overture.” The legal dispute pitted a hospital system with $1.7 billion in revenue for the year ended Sept. 30 against two relatively unknown developers.
Hoag’s suit was dismissed months later in March, and soon after, the government awarded the project to the Newport Beach-based hospital.
On April 2, Hilco said it would challenge the decision. The Signal Hill-based company hired Todd Theodora, founder of the Theodora Oringher law firm, which has an office in Costa Mesa.
Theodora is a well-known litigator in legal circles, handling famous cases like successfully representing Arte Moreno’s baseball team being allowed to name itself the “Los Angeles Angels of Anaheim.”
Third Time’s the Charm?
This pending auction would be the third time the GSA has tried to sell the Chet Holifield Federal Building, built in 1971 and designed by William Pereira, the renowned planner behind the city of Irvine. It spans one million square feet and is shaped like a pyramid. In prior years, it housed several federal agencies like the Internal Revenue Service.
The government in 2023 put the building, located at 24000 Avila Road in Laguna Niguel, on the auction block to avoid spending $300 million on long-term repair and upgrade costs. Round one of the auction yielded zero bids because the GSA required the winner to maintain the Ziggurat building as a historical landmark, significantly restricting development potential on the site.
By contrast, the second auction involved undisclosed bidders outbidding each other daily between June 5 and Oct. 24. Each new bid had to be a minimum of $300,000 higher. The bidding process was similar to the simplicity and pace of an eBay auction.
When it finally ended—with Hilco-Pintar emerging as the initial winner—a total of 157 bids had been submitted.
Hilco placed a 10% deposit, or $17.7 million, on the federal government facility. GSA had previously told the Business Journal that it was a non-refundable deposit, regardless of what happens with the auction and escrow. n