News Summary
Irvine Co. is advancing its housing initiatives in California, focusing on apartments despite a national decline in construction. With 3,000 units under construction and plans for 9,000 more, the company is capitalizing on a unique strategy that includes converting office spaces into residential units. The Newport Beach City Council recently approved 1,500 new residential units for the company, including affordable housing commitments. Irvine Co.’s innovative mixed-use developments aim to address housing shortages while fostering community environments.
Irvine, California – Irvine Co. is aggressively advancing its housing development initiatives in California, focusing primarily on apartments in unconventional spaces. This building surge is occurring amidst a national downturn in apartment construction, where many developers are canceling or postponing projects due to high financing costs and an uncertain economic climate.
Based in Newport Beach, Irvine Co. owns 125 complexes with a remarkable total of 65,000 apartments across the state. Currently, the company has 3,000 apartment units under construction at three sites in Orange County, with an ambitious plan to develop an additional 9,000 units that are in various planning stages in Orange, San Diego, and Santa Clara counties.
Should the company participate in the National Multifamily Housing Council’s scorecards, Irvine Co. would be recognized as the 12th largest apartment owner in the United States. This significant construction activity is especially noteworthy, as national figures indicate a decline in apartment construction by 25% over the last two years, reaching a low not observed since 2013-14.
The downturn in construction nationally can be attributed to a combination of factors, including high financing costs, a lackluster economy, steady rent levels, and instances of overbuilding. As a result, numerous developers have chosen to halt or delay rental developments. In contrast, Irvine Co. is taking significant steps to continue its projects, demonstrating a unique strategic approach led by its owner, Donald Bren.
At 93 years old, Bren is recognized as the nation’s wealthiest real estate investor and is known for his unconventional strategies. After the Great Recession in 2009, he resumed home construction, a move that has continued to shape Irvine Co.’s approach. The company has developed a diversified portfolio in California that spans residential, retail, entertainment, and business properties.
Irvine Co. is a pioneer in creating master-planned communities with long-term blueprints for development. Responding to the current economic conditions, the company has adapted its strategies by converting existing office spaces into residential developments to navigate the ongoing land scarcity challenges.
The Newport Beach City Council has recently approved a plan that allocates 1,500 of 2,349 new residential units in Newport Center to Irvine Co. The approval also includes stipulations for the development of 105 affordable housing units, streamlining project approvals, and extending the development rights agreement with the city until 2042. Height limits have been raised to facilitate new constructions, with 225 feet in Fashion Island and 125 feet on Newport Center Drive.
As part of the development agreement, Irvine Co. is committed to investing $17 million in street and landscaping improvements, along with providing $53 million in financial incentives for public amenities. Among the company’s major projects is the planned construction of 1,858 apartments at the Discovery Park campus. This project includes a mix of 596 studios, 802 one-bedroom units, and 460 two-bedroom apartments, accompanied by 5,000 square feet of retail space.
Furthermore, at least 310 units within the total of 1,858 must meet the criteria for affordable housing for a duration of a minimum of 75 years. Planned amenities will feature pools, a fitness center, and a 2.56-acre publicly accessible park.
Irvine Co. is not stopping there; it plans to build approximately 8,700 homes and apartments throughout Irvine to fulfill state housing mandates. The company’s ambitious development vision also includes plans to redevelop the Oak Creek Golf Club into 3,100 residences, comprising both apartments and single-family homes. Additionally, the Irvine Market Place shopping center is set to replace around 200,000 square feet of retail space with 1,261 apartments.
The company’s strategy of creating mixed-use developments is exemplified by its projects at Santa Clara Square, which integrate living, retail, and office spaces. This innovative approach aims not only to address housing shortages but also to foster vibrant community environments in California.
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Additional Resources
- OC Register: Irvine Co. Has Different Plan for Apartments
- LA Times: Newport Center Irvine Company
- OC Business Journal: Irvine Co. Seeks to Add 1,858 Apartments
- Commercial Observer: Irvine Company Multifamily Development California
- Bisnow: Irvine Co. Wants to Replace Irvine Golf Course with 1,500 New Homes
- Wikipedia: Irvine, California
- Google Search: Irvine Company housing developments
- Google Scholar: Irvine Company real estate
- Encyclopedia Britannica: Irvine, California
- Google News: Irvine Company latest news
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
