Posted July 8, 2026 | Updated October 21, 2026 | By Eric Engelbert
October 2026 Update
| Topic | Latest |
|---|---|
| Construction | Underway since May 2026 |
| Completion | Expected early 2028 |
| Leasing | Not yet open; likely 6 to 9 months before completion |
| Nearby | Big Newport Towers approved (appeal denied April 2026); Block 100 approved 2025 |
Not every Newport Beach housing story is a tower. At 800 San Clemente Drive, the Irvine Company demolished an 842-space parking garage in December 2025 and broke ground in May 2026 on 184 luxury apartments, expanding Villas Fashion Island to 708 homes. It is the fastest-moving residential project in Newport Center, and it was approved without a single public hearing. See all new construction in Newport Beach.
Project Snapshot
| Detail | Villas Fashion Island Phase 2 |
|---|---|
| Address | 800 San Clemente Drive, Newport Beach |
| Site | About 2.2 acres, formerly a four-story parking garage |
| Building | Five stories, about 225,000 sq ft |
| Apartments | 184, averaging about 1,220 sq ft |
| Parking | 287 spaces on two underground levels |
| New amenities | Pool, sauna, fitness center, coworking, courtyards |
| Shared amenities | Full access to the existing Villas Fashion Island pools, clubhouse, and lounges |
| Timeline | Demolition December 2025; construction May 2026; completion early 2028 |
| Combined total | 708 apartments with the existing 524-unit community |
Email Eric to join the Villas Fashion Island Phase 2 update list or call/text 949-430-7500
Who Owns Newport Center
Newport Center was master planned in the 1960s by architect William Pereira for the Irvine Company, which still owns Fashion Island, the surrounding office towers, and most of the land. Donald Bren bought control of the company in 1983 and now owns it outright. Because the company already owned this garage site, there was no land sale and no acquisition cost. It simply turned underused parking into housing.
No Public Hearing Required: How PC-56 Works
The North Newport Center Planned Community (PC-56) sets development standards in advance. Projects that meet them can be approved by city staff without Planning Commission or City Council hearings. Associate planner Oscar Orozco told the Orange County Business Journal, "This project takes a site that wasn't serving a specific use and turns it into housing that helps meet the city's needs."
| Irvine Company development agreement term | Detail |
|---|---|
| Homes allocated to Newport Center (PC-56) | 1,500 |
| Affordable commitment | At least 105 very low or low income homes in Newport Center by 2029 |
| Planning Commission | Recommended 5-0 on March 6, 2025 |
| City Council | Adopted Ordinances 2025-7 and 2025-8 in spring 2025 |
| Block 100 height limit | Up to 125 feet for residential buildings |
What Will Rents Be?
Phase 1 opened in 2017 with one-bedrooms from about $3,450 a month. Current asking rents start around $5,195.
| Unit type | Our estimate for 2028 |
|---|---|
| One-bedroom | $4,800 to $6,000 a month |
| Two-bedroom | $7,000 to $9,500 a month |
| Annual rent roll, 184 homes | About $14 million to $18 million |
Phase 2 is all market rate. The affordable homes required by the Irvine Company's development agreement are expected in other Newport Center projects. Browse Newport Beach rentals or, if you would rather own, Newport Beach condos for sale.
Tax Impact
Because the Irvine Company keeps the apartments, units are not reassessed at sale the way condos are. The new building is assessed at construction cost, likely $80 million to $110 million, generating roughly $1 million a year in total property tax, with the city receiving a share. The bigger fiscal effect is indirect: 184 more households shopping and dining at Fashion Island.
The Irvine Company's Newport Beach Pipeline
| Irvine Company project | Homes | Status |
|---|---|---|
| Villas Fashion Island Phase 2, 800 San Clemente Dr | 184 apartments | Under construction; early 2028 |
| Block 100, 100 to 190 Newport Center Dr | Up to 600 apartments | Approved 2025; not yet permitted |
| Remaining Newport Center allocation | About 716 | Future sites |
| MacArthur Court (Airport Area) | 700 apartments | Approved November 2025 |
Other Newport Center Projects
| Project | Homes | Status |
|---|---|---|
| Big Newport Towers (Related California) | 150 for-sale condos | Approved; appeal denied April 2026 |
| Ritz-Carlton Residences | Up to 159 condos | Approved 2022; not started |
| Former car wash site | Part of Block 100 | Sold June 2026 |
What Measure H Means Here
Newport Beach voters decide Measure H on November 3, 2026. It would cut the city's housing capacity from 8,174 homes to 2,900, all for lower and moderate income households. The state housing department (HCD) has said projects that filed applications before a measure like this passes generally keep the rules in place when they filed, so approved projects are expected to proceed either way. Future projects face more uncertainty. See our Newport Beach Housing Element post for the full breakdown.
Frequently Asked Questions
What is being built at 800 San Clemente Drive?
A five-story, 184-unit apartment building replacing a former 842-space parking garage. It joins the existing Villas Fashion Island community for a total of 708 apartments.
When will Villas Fashion Island Phase 2 open?
Construction began in May 2026 and completion is expected in early 2028.
How was it approved without a hearing?
It met the pre-set standards of the North Newport Center Planned Community (PC-56), so city staff approved it administratively.
What will rents be?
No pricing has been released. Current Villas Fashion Island rents start around $5,195 a month, and Phase 2 is expected to be similar or higher.
Are there affordable units?
No. Phase 2 is all market rate. The Irvine Company's required affordable homes are expected in other Newport Center projects.
Get Leasing Updates for Villas Fashion Island
I will let you know when leasing opens and what rents look like, plus other Newport Center news.
Call or text Eric at 949-430-7500 | Schedule a free 15-minute strategy call
New construction homes in Newport Beach | Newport Beach homes for sale | Block 100 | Newport Beach rentals | Newport Beach housing plan | View all OC new developments
:format(webp):quality(80)/u.realgeeks.media/ericengelbert/Orange-County-Weekly-Housing-Market-Reports-And-Statistics.png)
:format(webp):quality(80)/u.realgeeks.media/ericengelbert/Property-Valuation-with-comparable-sales.png)
:format(webp):quality(80)/u.realgeeks.media/ericengelbert/selling-my-house-in-orange-county.png)
:format(webp):quality(80)/u.realgeeks.media/ericengelbert/Call-Orange-County-Real-Estate.png)
:format(webp):quality(80)/u.realgeeks.media/ericengelbert/sell-my-house-instantly-orange-county.png)