News Summary
The Von Karman Corporate Center in Irvine is slated for demolition to pave the way for a residential development featuring 426 condominiums. The Irvine Planning Commission will review the proposal, which aims to generate significant revenue and address local housing demands. The development will include various housing types and is supported by a community park and affordable housing contributions.
Irvine, California – The Von Karman Corporate Center, an office property located in Irvine, is set for demolition to make way for a new residential development comprising 426 condominiums. The proposal, which is scheduled to be reviewed by the Irvine Planning Commission on September 18, is projected to generate sales between $500 million and $660 million upon completion.
The new residential units will be built on a 25.4-acre site at the northwest corner of Alton Parkway and Von Karman Avenue, estimated to accommodate nearly 17 homes per acre. Current market prices for condominiums in Irvine range from $1.2 million to $1.55 million, supporting the anticipated sales figures for the project.
Originally, the property was earmarked for the construction of two industrial warehouses totaling 541,344 square feet. However, the city of Irvine favors residential developments over industrial projects, resulting in a reluctance to approve excessive industrial development. To mitigate potential legal issues, the city’s former manager previously negotiated an option allowing the city to purchase the site for $317.5 million if the residential project is not approved in a timely manner. This purchase option represents a rate of approximately $745,000 per unit, significantly higher than typical market rates of $4 million to $5 million per acre for land designated for warehouse projects.
The proposal for the new condominiums has been submitted by Von Alton I LLC, a company associated with the private equity firm IRA Capital LLC. On August 27, the Irvine Subdivision Committee gave its endorsement to the submitted master plan, which includes a variety of housing types designed to cater to different buyer segments. The development plans consist of:
– 76 duet units (three-level attached duplexes) ranging in size from 1,833 to 2,203 square feet.
– As many as 93 single-story detached houses functioning as three-level condominiums, with sizes ranging from 1,674 to 2,150 square feet.
– 191 townhome-style condominiums featuring two to three bedrooms, sized between 1,357 and 1,665 square feet.
– 66 stacked flat units (three floors high) offering one to three bedrooms, with sizes varying from 712 to 1,442 square feet.
All residential units will be for-sale condominiums interconnected by pathways and walkways. Additionally, the developer, Von Alton, plans to contribute a $6.7 million community park in-lieu fee and a $7.2 million affordable housing in-lieu fee as part of the project.
Currently, the Von Karman Corporate Center hosts nine office and industrial buildings, primarily utilized for office space, which totals 440,397 square feet. IRA Capital acquired the VKCC portfolio for $102.4 million in January 2023 and operates it through Von Karman I LLC. This investment firm is recognized for its focus on alternative investments, particularly in the medical and healthcare real estate sectors.
Notably, California’s Assembly Bill 98, established last year, mandates specific minimum distances between residential properties and any new warehouses, which may affect future warehouse developments in the area. In support of the state’s increasing housing demands, the city of Irvine has also undertaken a significant rezoning effort in the IBC area, thus allowing for the introduction of up to 15,000 homes in what has historically been a commercially dominated district.
With the review by the Irvine Planning Commission on the horizon, local authorities and residents are poised to follow the proposed project closely, as it represents a significant shift in land use that could help address the housing needs of the growing community.
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Additional Resources
- OC Business Journal: $500M Condo Project in Irvine
- Google Search: 500M Condo Project Irvine
- OC Register: Irvine Council to Review 3100 Homes
- Wikipedia: Irvine, California
- Bisnow: Irvine Co. Plans 1500 New Homes
- Encyclopedia Britannica: Irvine California
- LA Times: Newport Center and Irvine Company
- Google News: Irvine California 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.
