A San Clemente-based housing developer has sued the trade group Orange County Realtors, accusing it of trying to block a $130 million senior housing project that already obtained city approvals.
Nick Buchanan, an infill developer based in San Clemente, plans to build a 180-unit senior housing development on a 4-acre shopping center he owns along La Paz Road in Laguna Hills. But Buchanan says the neighboring property owner — Orange County Realtors — has interfered with the project, forcing him to take legal action, according to the Orange County Business Journal.
Buchanan’s La Paz Village Investors filed a lawsuit Jan. 7 in Orange County Superior Court, alleging the trade group and its contractors conducted unauthorized construction on his property, including excavating asphalt, staging heavy equipment and blocking access to the shopping center, according to the complaint.
“This was a project we tried very hard to work through collaboratively,” Buchanan told the Business Journal. “I just want to sit in a room with them and figure out how we move forward so we can build this important housing project.”
Orange County Realtors did not respond to the Business Journal’s requests for comment.
The dispute centers on the redevelopment of La Paz Village, an aging retail center located just south of Interstate 5. Buchanan purchased the property in 2022 for $23.5 million and initially proposed townhomes before pivoting to senior housing. The five-story project would include independent living units, underground parking and amenities such as a gym, theater and rooftop deck, with 10 percent of units reserved for very low-income seniors.
Buchanan used California’s “builder’s remedy” law to secure approvals after Laguna Hills was found out of compliance with state housing requirements. The Laguna Hills City Council approved the project in September, despite some opposition.
According to Buchanan, Orange County Realtors owns the adjacent site and holds access easements across portions of the property. He said the group initially appeared open to the redevelopment but stopped communicating after construction activity escalated last fall.
“They dug up our property without asking,” Buchanan said. “That creates liability for us as a landlord.”
Buchanan said the lawsuit is aimed at clearing the way for construction to proceed.
“This is exactly the kind of housing California says it wants,” he said, with housing scarce across Southern California.
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