Irvine Co. to Convert Santa Clara Office Park to 1,800 Units in Largest Ever Silicon Valley Conversion

Irvine Co., a prominent real estate firm, is considering its largest-ever office-to-residential redevelopment venture in Silicon Valley. The project involves converting its Santa Clara Park office complex into a sizable apartment community.

Overview of the Project

The Santa Clara Park office complex, spanning nearly 26 acres in the Freedom Circle area, currently comprises 12 low-rise buildings. Plans indicate the demolition of these buildings to make space for 1,792 rental units, totaling about 1.7 million square feet.

Timeline and Current Status

While the timeline for the project remains undisclosed, Irvine Co. continues to advertise office space for rent on its website. Carlene Matchniff, Vice President of Irvine Co., expressed anticipation for collaboration with the city and community to realize the vision of creating homes near workplaces.

Acquisition and Considerations

In 2015, Irvine Co. acquired the office complex from Legacy Partners for approximately $137 million. Sources suggest that at the time of acquisition, converting the site into housing was already being contemplated.

Comparative Analysis and Rental Rates

Santa Clara Park is one of four office parks owned by Irvine Co. in Santa Clara. Its rental rates are comparatively lower than other properties owned by the company in the city. The company's nearby apartment complexes have rents starting at around $3,000 per month.

Portfolio and Revenue

Irvine Co.'s apartment division has become its primary revenue source, estimated to generate over $2.3 billion in annual rents. The company remains active in development, especially in Orange County, with various projects underway, including repurposing retail space and constructing new rental units.

Future Plans and Developments

Apart from the Santa Clara project, Irvine Co. has plans for over 2,000 new rentals in and around the Irvine Spectrum, as well as a 1,200-unit complex at UCI Research Park. The latter project is expected to undergo review by the Irvine City Council in early 2025.

Irvine Co. is strategically expanding its residential portfolio, focusing on repurposing office spaces into residential units and developing new rental communities in high-demand areas, showcasing its commitment to meeting evolving market needs.