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The Irvine Company is expanding its residential footprint as Orange County’s largest apartment owner plans to build more than 1,300 units on 19.4 acres at Tustin Legacy.
The city of Tustin recently entered into an agreement with the Irvine Co. to develop the land. The Newport Beach-based real estate firm would pay the city nearly $52 million for the property, or $2.7 million an acre, through its subsidiary, Tustin Legacy Acquisition LLC, city filings indicate.
Tustin Legacy Acquisition would build 1,336 apartments on property bounded by Warner Avenue, Legacy Road, Tustin Ranch Road and Compass Avenue.
“The project will provide needed housing opportunities for the city and region across a wide variety of income levels,” Tustin staff said in a report to City Council members.
The city staff report said 25% of the project, or 334 units, would be set aside for lower income tenants. City staff also said the apartment project would “contribute substantially towards meeting the housing goals identified within the City’s Housing Element and Regional Housing Needs Allocation requirements.”
Irvine Co. would specifically pay $42.1 million for the property, where it would build the 1,336 apartment units, plus nearly $9.6 million to fund Tustin Legacy’s infrastructure.
CBRE Group Inc., which has an office in Irvine, would receive a 1% commission at the close of the escrow, acting as the broker for the city of Tustin.
City staff said Tustin Legacy Acquisition would pay a $5 million deposit at the close of escrow.
The project’s approvals include the development agreement and entitlements, according to Irvine Co.
Tustin Legacy Specific Plan
The Tustin Legacy Specific Plan was initially adopted in 2003, a few years after the Marine Corps Air Station shut down. The plan has since evolved to redevelop the 1,600-acre former base with dining, housing, office, recreation uses, schools and shopping.
The most recent plans call for the entirety of Tustin Legacy to include 4,258 units of residential units, 1.6 million square feet of commercial space and more than 90 acres of parks.
Council member Gallagher said Tustin residents will have opportunities over the next few years to provide input of how the master-planned community would be developed.
Tustin city staff said the project was specifically designed with narrow streets to promote pedestrian activity and limit vehicle use within Legacy.
Community Editor Mark Mueller contributed to this report.