$220-Million Bayview Commercial Center : Downey S & L to Finance New Complex
Downey Savings & Loan Assn. officials said Wednesday that the Costa Mesa-based S & L will provide financing for the $220-million Bayview Commercial Center overlooking Upper Newport Bay as part of its joint venture to develop the commercial, retail and residential complex.
While Downey is funding the project, joint venture partner J.M. Peters Co. will develop the 145 single-family homes and 88 condominiums that will occupy 24 acres of the 64-acre Santa Ana Heights complex. About 18 acres will be dedicated as public open space, including a two-acre park with bicycle and equestrian trails.
The two partners--operating as Bayview--will share in the proceeds from sale of the properties, Downey spokesman John Dennis said.
Anchoring the complex on 22 acres of the site at Jamboree Road and Bristol Street will be a large parking structure and twin six-story office buildings, containing a total of 630,000 square feet.
Bayview, meanwhile, is close to reaching an agreement with the Marriott Corp. to put in an 8- to 12-story luxury hotel with 254 two-room suites plus restaurants and meeting rooms, Dennis said.
The hotel will round out a project that is expected to be completed within two years and be valued then at $400 million. Bayview estimates that the construction payroll will be nearly $26.3 million and that a permanent payroll for about 900 new employees will be $16 million to $18 million annually.
Downey, which sold its Costa Mesa headquarters building last year, will own one of the twin six-story office buildings and will consolidate its data processing, real estate and consumer loan and loan origination operations there. Downey is one of the largest S&Ls; in the state with $2.3 billion in assets and 41 branches throughout California.
Through its DSL Service Co. subsidiary in El Toro, Downey has developed real estate directly and has joined commercial and residential development partnerships. It has become one of the largest owners of shopping centers in California and Arizona.
Peters, in a separate joint venture with Davis Development Co. called Bayview Associates, will own the other six-story building. An employee said Bayview Associates will probably use the building as an investment rather than as a headquarters.
Peters, a decade-old Newport Beach real estate developer, recently was purchased by Southmark Co. of Dallas. Davis, also of Newport Beach, has been a developer of office buildings and business and industrial parks since 1973.
The Koll Construction Co. and Lusardi Construction Co. are putting up the two office buildings and the parking structure, all of which were designed by the architectural firm of McLarand, Vasquez and Partners Inc. Peters is scheduled to begin development of the residential areas in January.
