T
he Chet Holifield Federal Office Building, also known as the Ziggurat, has been sold for a record-breaking price. The seven-story building in Laguna Niguel was purchased by an investor identified as "Bidder #2" for $177 million, or $177 per square foot. This sale surpasses the initial opening bid of $70 million and marks a significant increase from the first auction held in 2022, which failed to attract any buyers due to preservation restrictions.

    The building's sale is part of a soft auction process, where bidding resets daily with a minimum increment of $300,000. The intense competition between two undisclosed bidders kept the auction alive for over four months before the winning bid was finalized. The government had put the property up for sale to avoid spending $300 million on repairs and upgrades.

    The Ziggurat's unique design and historic significance make it a prime target for redevelopment. A study by the Urban Land Institute suggests that the site could accommodate between 2,000 and 4,000 homes with a density of 60 to 80 units per acre. The buyer is likely to demolish the 53-year-old building and seek new zoning for the site, given the absence of preservation restrictions in this auction.