Orange County’s largest apartment owner is making another significant move in the regional housing market with a major development at Tustin Legacy.
The Irvine Company has entered into an agreement with the city of Tustin to develop 19.4 acres of land where it plans to build more than 1,300 apartment units. Under the deal, the Newport Beach-based real estate firm will pay nearly $52 million for the property through its subsidiary, Tustin Legacy Acquisition LLC, amounting to approximately $2.7 million per acre.
The development will bring 1,336 apartments to the area bounded by Warner Avenue, Legacy Road, Tustin Ranch Road and Compass Avenue. Notably, 25 percent of the units (334 apartments) will be designated for lower-income tenants, helping address affordable housing needs in the region, according to a report in the Orange County Business Journal.
“The project will provide needed housing opportunities for the city and region across a wide variety of income levels,” according to Tustin city staff cited in the report, who noted that the development will “contribute substantially towards meeting the housing goals identified within the City’s Housing Element and Regional Housing Needs Allocation requirements.”
The agreement specifies that Irvine Co. will pay $42.1 million directly for the property and an additional $9.6 million to fund Tustin Legacy’s infrastructure. CBRE Group Inc., which has an office in Irvine, will receive a 1 percent commission at the close of escrow as the broker for the city of Tustin, the report added. The company will also pay a $5 million deposit when escrow closes.
This project represents the latest phase in the ongoing development of Tustin Legacy, which began in 2003 following the closure of the Marine Corps Air Station. The 1,600-acre former military base is being transformed into a comprehensive master-planned community featuring residential, commercial, recreational, educational, and retail components.
Current plans for the complete Tustin Legacy development include 4,258 residential units, 1.6 million square feet of commercial space, and more than 90 acres of parks. City officials have emphasized that residents will have opportunities to provide input on the development over the coming years.
The apartment project has been specifically designed with narrow streets to encourage pedestrian activity and reduce vehicle use within the community, reflecting modern urban planning principles that prioritize walkability and sustainability.
With this investment, the Irvine Company continues to strengthen its position as a dominant force in Orange County’s real estate landscape while helping address the region’s growing housing needs.
