The Trump administration just pulled off one of its biggest wins in the fight against government waste — selling a massive, long-vacant federal building in Southern California for more than $207 million.
The General Services Administration announced Wednesday it sold the 89-acre former Chet Holifield Federal Building to Laguna Ridge Health Care Development, an affiliate of Hoag Memorial Hospital Presbyterian. The sale marks one of the largest property disposals under President Trump’s push to shrink the bloated federal real estate footprint.
The 1-million-square-foot complex — nicknamed the “Ziggurat” for its distinctive stepped-pyramid design — sat empty after federal agencies vacated it at the end of 2024. The IRS, Department of Homeland Security, and other agencies formerly occupied the Laguna Niguel landmark, designed by architect William Pereira and completed in 1971.
“GSA continues to deliver on President Donald Trump’s goal of eliminating costly, vacant properties from the federal real estate portfolio.”
GSA Administrator Edward Forst said the sale will spare taxpayers an estimated $340 million in long-term repair and modernization costs. The $207 million in revenue and avoided maintenance costs represent more than half a billion dollars removed from the taxpayer tab.
“The sale of the former Chet Holifield Federal Building generated over $207 million in revenue and saved American taxpayers more than $340 million in long-term repair and upgrade costs,” Forst said in a statement.
The new owner — an affiliate of the Orange County nonprofit hospital system — will preserve the building’s architectural legacy while gaining flexibility over future use. Hoag CEO Robert Braithwaite said the hospital system plans a “thoughtful, long-term approach” to serve residents and businesses in south Orange County.
The sale advances the White House Office of Management and Budget’s approved list of 11 federal properties recommended for disposal — a move officials said could save taxpayers roughly $5 billion in deferred maintenance costs.
This sale takes over $500 million in required updates off taxpayers’ tab.
Empty government buildings are a waste. Sell them ALL!https://t.co/C5jsJwapDh
— Joni Ernst (@SenJoniErnst) July 2, 2026
Sen. Joni Ernst (R-IA), who has pushed to cut the federal government’s real estate bloat, celebrated the transaction on X.
“This sale takes over $500 million in required updates off taxpayers’ tab,” Ernst wrote. “Empty government buildings are a waste. Sell them ALL!”
The Trump administration’s broader effort to dispose of underused federal properties continues to gain momentum as officials target billions in taxpayer savings through strategic sales of vacant government real estate.
