Irvine Co., USA Properties Break Ground on $175M Terracina at Tustin Legacy

• Irvine Company and USA Properties Fund have started construction on Terracina at Tustin Legacy, a 338-unit affordable apartment community in Tustin.
• The approximately $175 million project will serve households earning 30% to 60% of area median income.
• The development will include 160 one-bedroom, 94 two-bedroom and 84 three-bedroom apartments across two four-story residential buildings.
• Leasing is expected to begin in the second half of 2028, with construction scheduled for completion in 2029.

What Terracina at Tustin Legacy Includes

Construction is underway on Terracina at Tustin Legacy, bringing 338 affordable apartments to the former Marine Corps Air Station Tustin site in Orange County. The project is being developed by Irvine Company and USA Properties Fund and is expected to cost approximately $175 million. The apartments will be reserved for households earning between 30% and 60% of area median income. The community will consist of two four-story residential buildings wrapped around a parking structure. The unit mix includes 160 one-bedroom, 94 two-bedroom and 84 three-bedroom apartments, providing options for individuals, couples and families. The City of Tustin identifies Terracina as an affordable housing community being developed in partnership with Irvine Company.

What Residents Can Expect to Pay

Planned rents are expected to range from approximately $1,014 per month for a one-bedroom apartment at 30% AMI to approximately $2,856 for a three-bedroom apartment at 60% AMI. Those figures are estimates and could change before leasing begins. The rents are expected to remain below Tustin's market-rate apartment averages. Terracina is also designed with families in mind. For USA Properties Fund, it represents the company's first affordable housing development in Orange County specifically designed for families, following six previous local projects serving residents age 55 and older.

What Tustin Legacy Is Becoming

Terracina is part of the much larger Tustin Legacy redevelopment, which is transforming the former Marine Corps Air Station Tustin into a mixed-use community. The broader Tustin Legacy area spans approximately 1,600 acres and is planned with residential and commercial uses, parks, recreation facilities and educational institutions. Irvine Company is also pursuing a separate 1,336-unit apartment development within Tustin Legacy. The city has approved that project with 334 affordable units, or 25% of the total. Together, the projects show the scale of the residential pipeline being built around the former military base.

What The Development Means for Affordable Housing

Terracina adds 338 income-restricted apartments at a time when Orange County continues to face a significant shortage of affordable housing. The project will offer homes at income levels that are substantially below what many households encounter in the broader Orange County rental market. The inclusion of one-, two- and three-bedroom apartments also expands the area's options for lower-income families. The project's cost works out to roughly $518,000 per apartment, according to the source article. Financing includes J.P. Morgan Community Development Banking, although the developers have not disclosed the complete capital stack.

What The Construction Timeline Looks Like

Construction began in 2026, with leasing expected to start in the second half of 2028. Full construction is expected to wrap up in 2029. Irvine Company's separate Tustin Legacy residential community is also moving forward. The company's project website says work began in early 2026, with the first phase expected to include a community park and cafe and reach completion in summer 2028, followed by full project completion in summer 2029. The combined activity is turning Tustin Legacy into one of Orange County's more significant new housing districts.