Shea Homes aims to build 110 townhomes within Oak Knoll, a former naval hospital site in the Oakland Hills slated for a larger redevelopment.
The Walnut-based developer filed preliminary plans to build the homes on 7.9 acres at 8750 Mountain Boulevard, the San Jose Mercury News reported.
The site is within a long-troubled redevelopment zone of the former Oak Knoll Naval Hospital on 183 acres east of Interstate 580 and north of the Oakland Zoo.
The smaller Shea development site is now occupied by Seneca Center, which houses the Seneca Family of Agencies, a group of nonprofit organizations.
Details of the proposal were scant; it’s not clear if Shea Homes would build around the Seneca Center.
The Oak Knoll site has been on the development radar since the naval hospital commissioned during World War II closed in 1996. A Vietnam-era hospital building was imploded in 2011.
SunCal, based in Irvine, is the master developer. It was once partnered with Wall Street financier Lehman Bros., whose 2008 collapse wiped out funds that were expected to finance the development of the property.
Because of various bankruptcies, SunCal ended up buying the property twice, once in 2005 for $100 million, then in 2014 for $76 million.
SunCal, which has worked to relocate the historic Oak Knoll naval officers club building, began grading the site and installing infrastructure improvements in 2018. The pandemic caused further delays.
Plans for SunCal’s larger Oak Knoll redevelopment include 918 homes, 80,000 square feet of commercial and retail space, a village center, a new community center, 84 acres of public parks and open space, a trail network, a creek restoration and a navy memorial.
“SunCal plans to create a thriving residential community with charming neighborhoods, a restored creek and native landscaping, open spaces and public parks,” the company states in a post on the project’s website. “In a nod to its patriotic past, Oak Knoll will also feature a memorial that honors the hospital’s proud history.”
In June, SunCal filed a $20 million breach of contract lawsuit against the city of Richmond after it killed a deal to sell 270 acres on Point Molate, where the developer planned to build nearly 1,500 homes and rehabilitate some historic buildings. — Dana Bartholomew