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	Diocese Sells School Site to the Irvine Co. By Mike Freeman Union-Tribune February 23, 2008 http://www.signonsandiego.com/news/business/20080223-9999-1b23irvine.html The Irvine Co. has purchased the University of San Diego High School site in Linda Vista from the Roman Catholic Diocese of San Diego for $50 million. The Newport Beach-based real estate giant plans to build 533 apartments at the former private Catholic school site, which closed in 2005 when the diocese opened Cathedral Catholic High in Carmel Valley. Known as "Uni," the high school site was the most high profile of the church-owned properties involved in the diocese's bankruptcy filing last year. Proceeds from the sale will go toward paying the $198 million settlement the diocese reached in September with victims of sexual abuse by clergy members. The University of San Diego High property, which became a school in 1957 and is across the street from the University of San Diego, was earmarked for sale in 2004. The church previously had planned to use the proceeds from the sale to pay down debt from building Cathedral Catholic and Mater Dei Catholic High School in Chula Vista, said Joel King, director of construction services for the diocese. In 2005, William Lyon Homes reached an agreement to buy the bluff-top, 14-acre University High site for $65 million. The home builder put down a $6.5 million deposit and spent an unknown amount getting city approval to build 533 for-sale condos. But with the housing market slumping and the diocese mired in Chapter 11 bankruptcy, William Lyon claimed the diocese had not lived up to its obligations and walked away from the deal – forfeiting its deposit. The diocese put the property back on the market late last year and attracted about eight bidders, said David Dilday of American Pacific Investments, who represented the Irvine Co. in winning the deal. Land prices have come down over the past two years as condo builders – who typically are willing to pay more for land than apartment developers – have stopped buying, Dilday said. Apartment builders now are able to find land at prices where their projects make economic sense. During the housing boom, these apartment developers were often outbid by for-sale home builders. "It tells you a lot about what's going on in the market," Dilday said. "Everyone knows that the condo market has died. But what a lot of people don't understand is, for really nice locations like this one, there is still demand from apartment buyers. The apartment guys are quite active in trying to find ground-up deals." The Irvine Co. has been investing heavily in San Diego over the past few years. It owns six office towers downtown and more than half of the top-quality office buildings in University City. It also owns six large apartment complexes in the county, including Arcadia at Stonecrest in Mission Valley and Torrey Villas in Carmel Valley. The privately held company has a reputation for holding onto its real estate for the long term. The company hasn't determined when it will begin construction at the University High School site or what the rents might be, spokesman Bill Rams said. "This is an outstanding location for new apartments," Rams said. "It offers commanding ocean views and is across the street from one of the finest private universities in the state. There is significant demand in the area for high-quality housing with outstanding amenities." Mike Freeman: (760) 476-8209; mike.freeman@uniontrib.com
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