A once-sprawling parking structure near Fashion Island is giving way to hundreds of new homes, as the Irvine Company kicks off construction on a five-story, 184-unit apartment building in Newport Beach.
The project rises on a roughly 2.2-acre site at 800 San Clemente Drive, where a four-story, 842-space parking garage stood until recently. The new building will plug into the existing Villas Fashion Island complex, pushing the community to about 708 units once residents move in. By swapping out underused parking for apartments and amenities, the company is leaning into a more residential feel for the heart of Newport Center.
What Is Being Built
City planning records show the new structure will bring roughly 225,000 square feet of residential space, along with two subterranean parking levels holding 287 spaces, according to the City of Newport Beach. Plans call for a new pool, sauna, fitness center, coworking areas and outdoor courtyards.
Residents of the addition will also share in the existing Villas Fashion Island perks, including pools, a clubhouse, yoga studio and resident lounges, effectively folding the new wing into the larger community. City documents describe the design as a five-story building that wraps around and above the former garage footprint in order to preserve as much open space on the ground as possible.
How It Cleared Approvals
The expansion moved ahead through an administrative sign-off under the North Newport Center Planned Community rules, which meant planning staff could approve it without sending it to the Planning Commission or City Council. The Irvine Company obtained construction permits and started work after demolishing the garage, according to The Real Deal.
Oscar Orozco, an associate planner with the city, said the redevelopment "takes a site that wasn’t serving a specific use and turns it into housing that helps meet the city’s needs," as reported by The Real Deal. The staff-level process is part of a broader push by Newport Beach to speed up targeted infill in areas already packed with shops and offices.
Why It Matters for Newport Beach
The project counts toward Newport Beach’s state-mandated housing goals. The city’s 2021-2029 Housing Element calls for planning for 4,845 new units, according to the City of Newport Beach. Converting oversized parking lots and entertainment sites into homes has become a running theme in Newport Center.
Recent approvals to replace the Big Newport movie theater with residential towers underscore that reuse trend, with the entertainment landmark set to make way for housing, according to the Los Angeles Times.
Timeline and Neighborhood Impacts
Community-facing materials from the Irvine Company say demolition on the San Clemente Drive site began in December 2025, grading wrapped in spring 2026, and full construction is expected to finish in early 2028. The company also says it will post construction updates and lane-closure notices for nearby residents and businesses, according to Irvine Company.
In its outreach, the developer pitches the project as a way to "activate" an underused garage site steps from retail and office space, while promising to manage construction logistics to limit day-to-day disruptions in the Newport Center core.
The strategy of swapping parking for housing has become a shorthand for Newport Center’s gradual shift into a denser live-work district, a change noted by planners and local coverage. Officials and neighbors are expected to keep a close eye on traffic, parking and shared-amenity pressures as this and other projects roll out through 2028, with the new Villas Fashion Island building among several developments reshaping the blocks around Fashion Island, according to The Real Deal.
