In yet another surprising twist surrounding Laguna Niguel’s Ziggurat, a real estate startup from Long Beach says it’s the winning bidder for the government office complex.
Hilco Development Services said Tuesday, Nov. 5, that it won a lengthy federal auction for the Chet Holifield Federal Building and its 89 acres of prime south Orange County land.
The company’s $177 million bid – $107 million above the initial asking price – was the highest in an online auction with unidentified bidders that ran almost five months and ended Oct. 24.
It’s quite a victory for a fledgling development company headed by Cameron Hildreth, a 33-year-old construction engineer turned developer. He said his team and his undisclosed partners have ideas for the site, but hope to soon meet with city officials to “know the city’s vision first.”
Hildreth confirmed that his plans include demolishing the 53-year-old landmark.
Hilco shared the cover page of the bid acceptance letter from the federal General Services Administration with the Southern California News Group. The GSA congratulated the winning bid and noted a deposit of at least 10% of the price was to be paid within five business days of the auction’s end to move the deal forward. Hildreth said that payment was made.
GSA officials did not immediately respond to requests for comment on Hilco’s bid. Previously, the GSA said it could take up to six months for the purchase to be completed.
The auction’s numerous rotations included 47 days of late bidding within an hour of deadline – helping to extend it for another day.
Even Hildreth, with two engineering degrees from Arizona State, said he was surprised by the ending. His main competition, which finished every bidding day except one as the high bidder, opted not to top Hilco’s $177 million offer on the auction’s 61st day of activity.
As a result, Hilco won the property, best known for its pyramid-shaped Ziggurat office complex. The icon, designed by famed architect William Pereira, was originally built in 1971 for aerospace contractor Rockwell as a corporate headquarters and manufacturing site.
The company instead traded the complex three years later to the US government in exchange for Los Angeles properties. Various government agencies have used the Ziggurat since, but it was deemed as excess property to be sold via auction.
The first Ziggurat auction required the buyer to preserve the structure. That drew no bids. The second auction, with no requirement to keep the building, drew 157 bids.
Winning Ziggurat is a major leap for a relative unknown like Hilco. Its work includes constructing one small office building in Costa Mesa, and in Long Beach retooling the Prospector bar site and planning three modest Long Beach multifamily projects.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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