By Eric Engelbert

One of the larger new housing projects in Dana Point in years is taking shape in Capistrano Beach, on a site most locals have driven past for decades without a second thought: the old school district bus yard on Victoria Boulevard. Toll Brothers is turning it into Victoria Boulevard Apartments, a 306-unit community, and it is now moving from approvals into site work.

Here is what is being built, the story of the site, and what 306 new rentals mean for a beach town where new housing is rare.

What Is Being Built

Victoria Boulevard Apartments is a 306-unit rental community from Toll Brothers, the national homebuilder, in the Capistrano Beach area of Dana Point. The unit mix is broad, with 36 studios, 153 one-bedroom, 105 two-bedroom, and 12 three-bedroom apartments, and the buildings step from two to five stories. Of the 306 units, 46 are set aside as affordable housing, a meaningful component in a coastal market where income-restricted options are scarce.

The project has been described as a luxury rental community, and it reflects the kind of higher-density, mixed-income housing that coastal cities are increasingly approving to meet state housing requirements. The Coastal Commission attached conditions typical of this stretch of coast, including dark-sky lighting to limit light pollution and investigation of potential tribal cultural resources on the site.

Project Victoria Boulevard Apartments
Developer Toll Brothers
Location Victoria Boulevard, Capistrano Beach, Dana Point
Total units 306 (36 studio, 153 one-bed, 105 two-bed, 12 three-bed)
Affordable units 46
Height Two to five stories
Former use Capistrano Unified School District bus yard
Status Approved, site work underway
First residents Expected around 2028 (subject to change)

From Bus Yard to Housing

The site has a practical past. For years it served as the Capistrano Unified School District bus yard, a fenced lot of parked buses and maintenance space rather than anything the public used. That is exactly the kind of underused, publicly adjacent parcel that cities look to when they need to add housing without displacing existing neighborhoods or tearing down homes.

Converting a bus yard into 306 homes, 46 of them affordable, is a clean example of putting low-value infill land to higher use. It keeps new density on a site built for vehicles rather than pushing it into established single-family streets, which is often the difference between a project that pencils out politically and one that stalls.

The Capistrano Beach Setting

Capistrano Beach, or Capo Beach as locals call it, is the southern end of Dana Point, bordering San Clemente and close to Doheny State Beach. It is a quieter, more laid-back stretch than the harbor side of town, with a mix of older beach cottages, hillside homes, and ocean views. New rental housing at this scale is unusual here, which is part of why the project drew attention through its approvals.

The location also places future residents within reach of the bigger changes happening nearby. The Doheny Ocean Desalination Project is set to add a drought-resistant local water supply just down the coast, and the $600 million Dana Point Harbor revitalization is remaking the waterfront a few minutes north. Together, they point to a Dana Point that is investing in both its infrastructure and its housing.

What It Means for the Local Market

For renters, 306 new units is a significant addition in a city where apartment inventory is limited and rarely new. A modern community with a real range of floor plans, from studios to three-bedrooms, gives people more options to live in Dana Point without buying, and the 46 affordable units open the door for households usually priced out of the coast.

For owners and investors, new rental supply at this scale is worth watching. It reflects confidence that demand for coastal Dana Point living is strong enough to fill a large community, and over time a more populated, mixed-income Capistrano Beach supports the restaurants, shops, and services that make the area more livable. As with most well-located coastal infill, the long-term effect tends to be a neighborhood that feels more active and more valuable, not less.

Where Things Stand

Victoria Boulevard Apartments cleared its major approvals through 2024 and 2025, including Planning Commission sign-off, City Council certification of the environmental review, and Coastal Commission approval of the specific plan with modifications. As of 2026 the project is in the site-work and plan-check phase, with construction underway and first residents expected around 2028. Dates on projects this size do shift, so treat the move-in timing as a target rather than a promise.

Victoria Boulevard Apartments is one of several projects reshaping Dana Point right now. For the bigger picture, see our New Developments in Orange County page.

Thinking About Buying or Selling in Dana Point?

Capistrano Beach and the rest of Dana Point are changing fast, from new housing like Victoria Boulevard Apartments to the harbor revitalization and the Doheny desalination plant. Whether you are buying, selling, or just want to understand how your neighborhood is evolving, we can help you make a smart, informed move.

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