Tracking the online government auction of the iconic Chet Holifield Federal Building complex in Laguna Niguel. Last updated Sept. 5, 3:15 p.m.
The buzz: The online auction for what’s known as the “Ziggurat” hit its three-month anniversary with another late bid pushing the price to 123% above the government’s initial ask.
What’s for sale: A pyramid-shaped building on an 89-acre campus. After 53 years, the federal government has no use for the seven-story, 1-million-square-foot office facility.
Last bid: $156 million on Wednesday, Sept. 5, according to the General Services Administration auction site. Three bidders have driven the price $86 million above the $70 million asking value.
Latest bidding: On Thursday, a bid $300,000 above the previous day’s last bid – the minimum increase allowed – landed just 34 minutes before the daily auction deadline. That was quickly followed by another bid, upping the price by another $300,000. This essentially copied the bidding pace of the six previous bidding days and extended the auction by 24 hours.
Next deadline: Sept. 6 at 1:58 p.m.
The history: The GSA auction started June 5. It was originally due to end July 31 but bidding rules say if the current high bid is topped on a deadline day, the auction remains open for another 24 hours. That requirement was met July 31, when four bids pushed the price up $1.2 million to $136.8 million.
Extended bidding: The requirement to extend bidding has been met on all 25 business days since July 31. This extra auctioneering has added $19.2 million to the price. On 16 of these days, the auction was extended by a bid within one hour of the deadline.
What’s the opportunity? Ziggurat is a rare spot for large-scale real estate development in south Orange County. This is its second auction. The first, which required the buyer to preserve the Ziggurat structure, drew no bids. This auction – without that restriction on development – will likely mean demolition of the structure designed by the late famed architect William Pereira.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
