Grading Begun for New Irvine Village

Grading is underway for the first phase of the newest Irvine village, Oak Creek, near the San Diego Freeway and Jeffrey Road. The site will house three new apartment complexes, to be built by real estate investment trust Irvine Apartment Communities. Construction of the complexes, which will contain more than 1,000 units, is scheduled to begin this summer.

Two of the complexes will be aimed at young professionals. A third will contain larger units and cater to families who might not be able to afford a house in Irvine but want their kids to attend Irvine schools.

The freeway site might look like a hard sell because of the noise, but the visibility and access are actually a draw for apartment dwellers, said James Mead, IAC’s chief financial officer. He pointed out that Villa Coronado, another complex that overlooks the freeway, is almost fully occupied. The three complexes, tentatively dubbed Oak Creek, Quail Creek and Royal Oak, plus the two other projects the company is planning in West Irvine and Bonita Canyon, will cost IAC $150 million to build.

IAC likely will issue more stock to finance these projects. Last week the company filed a shelf registration with the Securities and Exchange Commission that would allow it to issue stock worth $250 million from time to time.

*

Melinda Fulmer covers real estate for The Times. She can be reached at (714) 966-7832 and at [email protected]