By Eric Engelbert
New Senior Housing Coming to South Orange County
A $130 million senior housing project has been approved at the La Paz Village shopping center on La Paz Road in Laguna Hills. The development will bring 180 apartments for residents 55 and older to a part of South Orange County that already has strong demand for age-qualified housing.
The project, developed by Nick Buchanan of La Paz Village Investors LLC and Cape Point Development, was approved by the Laguna Hills City Council in September 2025. It went through a contentious approval process involving California’s builder’s remedy law, significant public opposition, and a lawsuit that is still active. Despite all of that, the project has its approvals and is moving forward.
For anyone considering senior living options in South OC, or for families helping a parent evaluate the area, here is what you need to know about this project and what it adds to the local housing landscape.
The Site: La Paz Village Shopping Center
La Paz Village is an existing retail center at 25552 La Paz Road in Laguna Hills, located near the intersection of La Paz Road and Paseo de Valencia. Nick Buchanan purchased the approximately 4-acre shopping center in 2022 for $23.5 million through his company Cape Point Development, with a stated intention to add residential uses to the site.
The shopping center remains partially active. The new senior apartment building will replace a portion of the existing retail space rather than the entire center. Existing tenants not in the redevelopment footprint continue to operate, which includes the Orange County Realtors trade association office, whose presence on the property has become a notable part of this project’s story (more on that below).
Buchanan initially explored a townhome development for the site before pivoting to senior housing, which opened a path to approval under California’s density bonus and builder’s remedy laws.
The Building: 180 Units for Residents 55 and Older
The approved project is a five-story, 61-foot building containing 180 apartments reserved exclusively for residents ages 55 and up. The unit mix breaks down as follows:
- 16 studios at approximately 390 square feet
- 93 one-bedroom units ranging from 519 to 800 square feet
- 71 two-bedroom units ranging from 888 to 1,040 square feet
The building includes a 253-stall parking structure and a full amenity package designed for active senior living: activity rooms, a theater, fitness center, swimming pool, salon, and community courtyards. The design is intended to support an independent lifestyle with on-site conveniences that reduce the need for residents to leave the property for daily activities.
Of the 180 units, 162 will be rented at market rate and 18 will be reserved for very low-income tenants (10% of total units). The affordable units were a required component of the builder’s remedy application, as explained below.
What Is Builder’s Remedy and Why Was It Used Here?
Builder’s remedy is a provision in California’s Housing Accountability Act that allows a developer to bypass certain local zoning and general plan restrictions when a city’s housing element is not in compliance with state law. In plain terms: if a city has not met its state-mandated housing planning requirements, developers can bring projects that would otherwise be denied and the city has very limited ability to say no.
To use builder’s remedy, the project must include a meaningful share of affordable units. In this case, Buchanan’s project provides 10% of units at very low-income rents, which meets the threshold.
Laguna Hills, like many South OC cities, had a housing element that was not certified as compliant with state requirements at the time this application was filed. That opened the door to the builder’s remedy application. The city was effectively in a position where state law gave it limited grounds to reject the project outright, which is why council members who were skeptical of the project still voted to approve it. The final vote was 3 to 1, with Councilmember Erica Pezold casting the lone no vote.
Builder’s remedy has become an increasingly common tool in Southern California as the state has tightened enforcement of housing element law. It is controversial in many communities, but it is legal and it is being used successfully by developers across Orange County.
The OC Realtors Lawsuit: An Unusual Turn
The approval of the La Paz Village project did not end the conflict. On January 7, 2026, Buchanan’s La Paz Village Investors LLC filed a lawsuit in Orange County Superior Court against the Orange County Realtors trade association, which occupies office space in the La Paz Village shopping center and owns an adjacent parcel with access easements across portions of Buchanan’s property.
The lawsuit alleges that OC Realtors and its contractors conducted unauthorized activity on the property, including excavating asphalt, staging heavy equipment, and blocking access to the shopping center. According to the complaint, the developer says OC Realtors initially appeared to support the redevelopment but stopped communicating as construction-related activity increased in the fall of 2025.
OC Realtors has not publicly responded in detail to the allegations. The lawsuit was ongoing as of early 2026.
This situation is worth noting for anyone following the project. It does not change the project’s approval status, but disputes over site access and easement rights can affect construction timelines. The resolution of this lawsuit will likely influence when the developer is able to fully mobilize on the site.
Senior Housing Demand in South Orange County
South Orange County has one of the highest concentrations of residents 55 and older in the region. Communities like Laguna Woods and Casta del Sol in Mission Viejo have served this population for decades, offering age-qualified ownership housing in established, amenity-rich settings. Those communities remain extremely popular and resale inventory is consistently limited.
The La Paz Village senior apartments address a different part of the senior housing market: rental apartments for people who want the flexibility of renting rather than owning, or who are not yet ready to buy into a 55+ community. It also adds a very low-income rental option for seniors on fixed incomes who have been priced out of the market entirely.
The location on La Paz Road puts the building close to medical services, including Saddleback Memorial Medical Center, and within a short drive of Mission Viejo, Laguna Hills, and Lake Forest. For seniors who are evaluating a move to South OC, this project adds a rental option that did not previously exist in this specific area.
If you are exploring 55+ communities and senior living options across Orange County, our team specializes in this market and can help you understand all of your options, from ownership communities like Laguna Woods and Casta del Sol to rental developments like this one.
What to Watch Going Forward
The project has its city approvals in place. The next steps depend on resolving the active lawsuit with OC Realtors, securing construction financing, and completing building permit processing. Given the $130 million project cost, construction financing will be a key factor in the timeline.
No construction start date has been publicly announced. If the easement dispute and financing come together in 2026, construction could realistically start in 2026 or 2027, putting a likely delivery date in the 2028 to 2029 range depending on construction pace for a five-story building of this scale.
For seniors or family members actively planning a move, this project is worth tracking but is not a near-term housing option. The ownership communities in the area, including Laguna Woods and Casta del Sol, offer homes available for purchase right now.
Looking for Senior Housing in South OC?
I have worked extensively in the senior living communities of South Orange County and know this market well. Whether you are looking to buy in an established 55+ community or want to understand all of the options available in the area, I can help you find the right fit.
Search current listings: Laguna Woods | Casta del Sol | All OC 55+ Communities
