The bidding for the Chet Holifield building, dubbed the Ziggurat Building, was opened May 31, 2024. The three-month-long bidding war for the seven-story, one million square foot, government-owned property began with a $70 million starting bid on June 30.
When the building first called for bidders, the government had “preservation easements” to keep the pyramid-shaped building on the property, and even lease a part of it back to the federal government.
The original auction was unsuccessful and the new regulations no longer contain any limitations on the 89 acres of development property. The buyer now has full control over the property.
The auction process stipulates that there must be a bid within 24 hours of the last bid and bids are required to increase by a minimum of $300,000 by each participant with the registration fee being $200,000. In only two days, the bid was already at $125 million.
There are currently three bidders in contention to win the property. The current highest bid is $164.4 million from the unknown bidder known only as #1. Since the bidding began, the anonymous bidders have been one-upping each other on the deadline days, often within the last hour of the allotted time.
The buyer will likely tear down the seven-story building and the structure, which can be seen from the backside of Aliso Niguel High School’s campus, will be gone.
As the building was originally put up for auction unsuccessfully in 2022, Tammy LeTourneau, City Manager of Laguna Niguel, said she was “excited about potentially developing the property and having a successful bidder.”
The General Services Administration is helping to oversee this project along with LeTourneau.
The Laguna Niguel City Council is also involved, with Councilmember Sarah Davis saying, “Whatever happens next could really transform that part of the city.”
Davis also expressed that the City Council will ensure that the community’s opinion is considered when the decision is made about what to do with the building.
From the original listing, the price has gone up about 135%. Other properties in the south Orange County area are selling for around 4.1 million per acre, making the site designed by William Pereira worth upwards of 300 million.
The property currently is not zoned for housing, meaning any companies moving onto the site could not create any new residencies on the land. Most envision the land to be used commercially.
The iconic landmark was featured in multiple movies during its 53 years but this soft close auction will likely see its removal from the Laguna Niguel landscape.
