From JCPenney to 167 Condos: What the Village at Orange Redevelopment Means for Orange County Housing

By Eric Engelbert

The Village at Orange mall is getting 167 new condos. This is exactly what Orange County has been doing.

If you've been watching Orange County housing news, you've probably noticed a pattern. Golf courses are being proposed for housing. Public courses are losing land to development. And now, dead anchor stores at aging malls are coming down to make way for condos. The Village at Orange is the latest chapter in that story.

This isn't just about a JCPenney getting torn down. It's about what kind of housing OC is actually able to build in 2026, and where it's putting it.

What's Actually Being Built

For-Sale or Rental?

What It Will Cost

Lennar has not released pricing yet. Pre-sales typically open 12 to 18 months before move-in, so detailed pricing will come once the project clears its remaining approvals and Lennar opens a sales office. For context, new-construction townhome condos in OC aimed at the same buyer profile in 2026 generally run between $700,000 and $1.1 million, with three-bedroom and end-unit plans often pricing higher. Expect the Village at Orange units to land somewhere in that range. You can browse current condos and townhomes for sale across Orange County to see how today's resale and new-construction inventory is priced in comparable communities.

The Status of the Approval

Demolition is happening, but that does not mean the project is fully approved. The residential phase still has to clear entitlements and environmental review. The City of Orange is hosting community engagement sessions, and some neighbors have raised concerns about added traffic and density on a parcel that has long been a single-use shopping destination.

A site doesn't get to "shovels in the ground" just because the old building comes down. The harder fight is usually after demolition, when the city is deciding exactly what gets to go in its place.

This Is Part of a Bigger Pattern

Orange County's malls have been quietly transforming for years. Online shopping, the decline of department-store anchors, and California's housing mandates have combined to make underused mall acreage one of the only viable infill development sites large enough to absorb meaningful unit counts. Several OC malls are now in some stage of housing conversion:

Why This Matters for Orange

The City of Orange does not see many new housing developments, especially near its established residential and commercial cores. The historic Old Towne, Chapman University, and the surrounding established neighborhoods limit where new construction can practically go. That's exactly why a parcel like the Village at Orange site is so attractive to developers: it's already commercially zoned, already serviced by major roads and utilities, and already part of a community that's used to a steady flow of cars and visitors.

For local buyers, especially first-time buyers and downsizers, that matters. New-construction homes inside the City of Orange are rare. A 167-unit project in a walkable, established area is the kind of inventory that doesn't usually become available outside of the master-planned south-county communities like Rancho Mission Viejo.

My Take, from a Real Estate Perspective

I think this project is good for the market, with some caveats.

On the positive side: OC needs new for-sale housing aimed at first-time buyers, and there isn't much of it being built. 167 townhome-style condos in a walkable infill location in central OC is exactly the type of product that gives a young family or a downsizer a real shot at ownership without leaving the area. That's a win.

The caveats are about execution. Townhome condo projects live and die on design quality, parking ratios, and HOA structure. A well-designed project at this price point will sell out and hold value for decades. A poorly designed one becomes the kind of community that ends up with deferred maintenance, HOA disputes, and resale challenges within ten years. Integral Communities and Lennar both have strong track records, but the final design that comes out of the city review process is what will determine which path this one follows.

The other caveat is the broader mall question. The Village at Orange is not closing. The remaining retail tenants stay. But the long-term direction of retail at the mall is uncertain, and buyers in the new condos need to factor in what their immediate surroundings will look like in five, ten, and twenty years. A vibrant mixed-use anchor next door is an asset. A continuously shrinking mall next door is a different value proposition.

Mall-to-housing conversions work best when the mall doesn't fully die. They become a problem when the new homes are surrounded by empty retail that nobody is willing to refresh.

What This Means for Buyers and Investors

• If you're a first-time buyer in central OC, this is a project to put on your watch list. Sign up for Lennar's interest list early. Townhome projects from major builders often have priority access for buyers who registered first. While you wait for pre-sales to open, see what's currently available with our live listings of condos and townhomes for sale in Orange.
• If you live in the surrounding neighborhoods, stay engaged with the City of Orange's community sessions. The final unit count, parking ratios, and circulation plan are still being shaped, and resident input genuinely affects those decisions.
• If you own a home nearby, the long-term impact on your property value depends on how well the project integrates with the surrounding area and what happens to the remainder of the mall. Well-executed infill generally lifts adjacent home values. Poorly executed infill is more mixed.
• If you're an investor, remember that townhome condos in Orange County are governed by their HOA structure and CC&Rs. Read those documents carefully before buying. Some condo HOAs restrict rentals, which materially changes the investment thesis.

Frequently Asked Questions

Is the Village at Orange mall being demolished?

Not entirely. The mall itself is staying, but the former JCPenney building, which has been vacant for years, is being demolished. The 167 new condominiums will be built on the JCPenney parcel. Much of the back half of the mall was also demolished in early 2024. The remaining tenants and the main mall structure are not being torn down.

Are the new homes condos for sale or apartments for rent?

For sale. The 167 units are townhome-style condominiums developed by Integral Communities and built by Lennar Homes. They are designed for first-time buyers, young families, and downsizers looking for low-maintenance ownership in an established part of Orange. These are not rentals.

How much will the condos at the Village at Orange cost?

Pricing has not been officially released. New construction townhome condos in Orange County aimed at first-time buyers, families, and downsizers in 2026 typically price in the $700,000 to $1.1 million range, with three-bedroom and end-unit plans often higher. Expect Lennar to release official pricing during pre-sales, generally 12 to 18 months before move-in.

When will the condos be built and ready to move in?

Demolition of the JCPenney building began in April 2025. The project still has to clear entitlements and environmental review before construction starts. Realistic move-in dates depend on how quickly the city's review process moves, but most townhome-style condo projects of this size take roughly two to three years from groundbreaking to first occupancy.

Has the project been approved by the City of Orange?

Not fully. Demolition is underway, but the residential project still has to clear entitlements and environmental review. The City of Orange is hosting community engagement sessions, and traffic and density concerns from neighbors are part of the ongoing public conversation. Final approval rests with the City.

Other OC Development Stories in This Series

1. Costa Mesa Country Club May Lose Holes to Fairview Housing Project. Here's Why.
2. Oak Creek Golf Club May Be Replaced by 3,100 New Homes. What's Next for Irvine?
3. Newport Beach Golf Course, Surf Park, and Housing: The Airport Area Transformation.
4. How Mile Square Golf Course Went From 36 Holes to 18.
5. The Marisol: Huntington Beach's New $252M Senior Community.

Explore Condos, Townhomes, and Homes for Sale in Orange and Nearby Cities

1. Orange: Condos and Townhomes for Sale
2. Orange County: All Condos and Townhomes for Sale
3. Orange: All Homes for Sale in Orange, CA
4. Anaheim: Homes for Sale in Anaheim, CA
5. Tustin: Homes for Sale in Tustin, CA
6. Santa Ana: Homes for Sale in Santa Ana, CA
7. Villa Park: Homes for Sale in Villa Park, CA

The Bigger Question