The buzz about Hive Live, a 1,050-unit mixed-use housing development proposed in Costa Mesa, appears to be over.
At Tuesday’s City Council meeting, Mayor John Stephens said, “The Hive is not going to happen.”
The council had been scheduled to hold a public hearing on the 14-acre project north of the 405 Freeway on Susan Street, which would also include more than 3,000 square feet of retail space, large open spaces and have more than 100 of its apartments set aside for low-income residents. But instead, the developers asked the council to shelve their request to an unknown future date.
The city’s Planning Commission had already in June approved the plan that would have replaced the existing Hive Creative Office Campus and former Los Angeles Chargers practice field.
Instead, Tuesday night at the council meeting, Stephens said the property has instead been sold and the new owners have entered into a 15-year lease with neighboring Anduril Industries for an expansion. Anduril is a defense tech firm launched by tech mogul Palmer Luckey, also the founder of Oculus.
Drawbridge Realty announced on Thursday, Oct. 9, that it had completed the purchase of the 190,000-square-foot, three-building office campus from Invesco Real Estate and at the same time signed a “long-term” lease with Anduril, which has its 634,000-square-foot headquarters campus facing Harbor Boulevard.
“Anduril, of course, is a great corporate citizen of the city of Costa Mesa. It is wonderful they are expanding,” Stephens said, though he lamented what he called a “a great, very promising project.”
“It is disappointing we aren’t going to be able to go forward with the beautiful housing project,” he said, “but I am very pleased by Anduril, they are an excellent employer.”
Drawbridge’s announcement Thursday leaves open the opportunity for some development, saying, “In addition to stable, in-place income from Anduril’s long-term lease, the acquisition includes approximately three acres of excess land with future development potential.”
“The Hive underscores our commitment to investing in high-quality assets backed by strong credit tenants,” Charlie McEachron, CEO of Drawbridge Realty, said in a statement. “It is an outstanding property in a premier location, and our ability to secure a lease with a strong tenant aligns with our long-term investment strategy, making it a natural fit for our portfolio.”