Sea Sale: Site on Coast Goes for $21 Million
Two Orange County developers have teamed up to buy one of the largest tracts of vacant coastal property in Southern California, paying $21 million for what they plan to turn into a residential and commercial project, the broker for the deal said Monday.
A partnership formed by St. Clair Co. and Capital Pacific Holdings, two Newport Beach residential developers, acquired a 31-acre site south of the Huntington Beach Pier, real estate broker Mackey O’Donnell said.
Their partnership, called Atlanta Huntington Beach, bought the former Chevron oil field from Shea-Vickers Development. The site is in a downtown redevelopment zone next to the Waterfront Hilton Beach Resort hotel.
“The strong demand for high-quality properties, such as this, illustrates the tremendous confidence investors have in the Orange County marketplace,” said broker Craig Atkins, who along with O’Donnell represented the buyers.
With developable coastal land in short supply in Southern California, companies like St. Clair and Capital Pacific are turning increasingly to unusual locations, such as former oil sites, to build expensive oceanfront homes.
In Huntington Beach, the developers plan to build a mixed-use project called Oceanfront Plaza that would include a variety of housing units, high-end offices and space for businesses serving residents and tourists.
St. Clair and Capital Pacific formed the joint venture to buy and develop the project.
“With panoramic oceanfront views of the Pacific Ocean and nearly a quarter-mile of frontage along Pacific Coast Highway, this property provides a unique opportunity to develop a world-class project,” Steven St. Clair, president and chief executive officer of the St. Clair Co., said in a statement.
Officials from the two companies were not available for further comment.
St. Clair had made an initial offer for the site early last year but it was rejected by Shea-Vickers, which had not put the site up for sale, according to O’Donnell, the broker.
But St. Clair persisted, bringing in Capital Pacific as a partner to purchase the property. Much of the property is vacant except for a restaurant and a small hotel.
Shea-Vickers--itself a partnership that includes Shea Homes of Walnut--had purchased the former oil field as part of a portfolio from Chevron Oil. Shea-Vickers had produced some conceptual development plans for the site but was still far from starting construction.
St. Clair has been involved in developing residential projects in the Anaheim area, Yorba Linda and Oceanside, O’Donnell said.
Capital Pacific is developing a number of high-end residential projects along the coast, including one on the Palos Verdes peninsula and another on a Dana Point hilltop.
Capital Pacific bought financially ailing home builder J.M. Peters Co. six years ago. Previously, Peters had built the hilltop homes involved in the recent landslide in Laguna Niguel, and the builder and the developer now are being sued by condominium owners downhill from the sliding homes.
