GSA sells 89-acre property for record $207 million

The General Services Administration announced Wednesday it sold a massive, long-vacant federal office complex in Southern California to an affiliate of Hoag Memorial Hospital Presbyterian, marking one of the largest property sales in the Trump administration’s effort to shrink the federal real estate footprint and reduce government waste.

The more than 1 million-square-foot former Chet Holifield Federal Building, better known as the “Ziggurat” for its distinctive stepped-pyramid design, sold for more than $207 million to Laguna Ridge Health Care Development, an affiliate of the Orange County nonprofit hospital system.

Located on 89 acres in Laguna Niguel, the landmark building was designed by architect William Pereira and completed in 1971. It formerly housed the IRS, the Department of Homeland Security, and other federal agencies before being vacated at the end of 2024.

GSA said the sale will generate more than $207 million in revenue while sparing taxpayers an estimated $340 million in long-term repair and modernization costs. As part of the agreement, the agency said the property’s redevelopment will preserve Pereira’s architectural legacy, even as the new owner gains flexibility over future use.

“GSA continues to deliver on President Donald Trump’s goal of eliminating costly, vacant properties from the federal real estate portfolio,” GSA Administrator Edward Forst said in a statement. “The sale of the former Chet Holifield Federal Building generated over $207 million in revenue and saved American taxpayers more than $340 million in long-term repair and upgrade costs.”

Hoag CEO Robert Braithwaite said the hospital system plans a “thoughtful, long-term approach” to the property that will allow it to better serve residents and businesses in south Orange County.

The sale is part of the administration’s broader push to dispose of underused federal buildings. Last year, the White House Office of Management and Budget approved a list of 11 federal properties recommended for disposal, a move officials said could save taxpayers roughly $5 billion in deferred maintenance costs.

This sale takes over $500 million in required updates off taxpayers’ tab.

Empty government buildings are a waste. Sell them ALL!https://t.co/C5jsJwapDh

Sen. Joni Ernst (R-IA), who has long pushed to reduce the federal government’s real estate holdings, praised the transaction.

“This sale takes over $500 million in required updates off taxpayers’ tab,” she wrote on X. “Empty government buildings are a waste. Sell them ALL!”