If you’ve driven down the I-5 through South Orange County lately, you’ve seen it. That massive, quiet concrete footprint where the Laguna Hills Mall CA used to be a bustling hub of 1970s and 80s suburban life. It’s a ghost town. Honestly, it’s a bit depressing if you remember the days of the Orange Julius or grabbing a suit at Silverwoods.
But here is the thing.
Most people think the mall just died because of Amazon. That's a tiny slice of the pie. The real story involves years of bureaucratic gridlock, developer pivots, and a massive shift in how we actually want to live in California. It isn't just a dead mall; it’s a case study in why suburban redevelopment is so incredibly hard to pull off.
The Rise and Sudden Stall of Laguna Hills Mall CA
Opened back in 1973, this place was the spot. It had the classic anchors: Sears, Buffums, and JCPenney. It felt permanent. For decades, it served as the retail heart for Laguna Hills, Laguna Woods, and Aliso Viejo. But by the 2010s, the "retail apocalypse" started hitting home. Meriden Property Group eventually sold it to Merlone Geier Partners in 2013, and that’s when the "Five Lagunas" dream started—and then sort of stopped.
The plan was ambitious. We're talking a massive open-air village, a cinema, and luxury apartments. They even started demolition. You might remember the sight of the old Sears coming down. But then, silence.
The project stalled out for years. Residents were left staring at a fenced-off wasteland. Why? Because the market changed. The developer realized that just building another "fancy mall" wasn't going to cut it in an era where people want walkable, mixed-use environments rather than just a sea of parking spaces and a food court.
Why the "Five Lagunas" Name Flopped
The branding was the first hurdle. Merlone Geier wanted to call it "Five Lagunas," aiming to tie together the surrounding communities of Laguna Hills, Laguna Niguel, Laguna Beach, Laguna Woods, and Laguna Canyon. It sounded good in a boardroom. In reality? Locals just kept calling it the Laguna Hills Mall CA.
There was a disconnect. People didn't want a clever brand; they wanted a grocery store and a place to walk their dogs. The project felt stuck in a loop of "coming soon" signs that stayed up so long they started to fade in the sun. It became a local joke, albeit a frustrated one.
The Shift to "Village at Laguna Hills"
Eventually, the developer went back to the drawing board. They scrapped the "Five Lagunas" vibe and rebranded the site as The Village at Laguna Hills. This wasn't just a name change. It was a total philosophical pivot.
The new plan is way more intense.
It includes:
- Up to 1,500 residential units (because California desperately needs housing).
- A 150-room hotel.
- 465,000 square feet of office space.
- Roughly 250,000 square feet of retail and "destination" dining.
Basically, they're trying to build a "city center" where none existed. It’s a massive gamble. To make this work, the City of Laguna Hills had to approve significant zoning changes, moving away from purely commercial use to this "urban village" concept.
The Economic Reality of the Site
Retail is weird now.
If you look at nearby Irvine Spectrum or Fashion Island, those places are thriving because they are experiences. You go there for the ferris wheel or the high-end dining as much as the clothes. The Laguna Hills Mall CA site is in a tough spot geographically. It’s squeezed between the massive Mission Viejo Mall and the Spectrum. It can’t just be a "normal" mall anymore. It has to be something else.
The office space component is particularly risky in 2026. With hybrid work being the standard, filling nearly half a million square feet of office desks is a tall order. However, the developers are betting on "medical office" demand, given the proximity to MemorialCare Saddleback Medical Center. That’s a smart move. Healthcare is one of the few things you can’t do over Zoom.
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Traffic and the Local Pushback
You can't talk about this mall without talking about the 5 Freeway and El Toro Road. It is a nightmare.
One of the biggest hurdles for the new Village at Laguna Hills project has been the California Environmental Quality Act (CEQA) and traffic studies. Adding 1,500 apartments means potentially 3,000 more cars trying to turn left onto Avenida de la Carlota. The neighborhood residents in the surrounding "Laguna" cities are, understandably, terrified of the gridlock.
There have been dozens of public hearings. Some people want the old mall back (which isn't happening), while others want a park. The reality is that the land is privately owned. The city can’t force a park; they can only approve or deny what the owner proposes within the legal limits of the law.
What is Actually Open Right Now?
If you go there today, don't expect to go shopping. Most of the interior mall is gone or boarded up. However, the "outparcels" are still kicking.
- King’s Fish House: Still a staple and usually packed.
- In-N-Out: Obviously, the drive-thru line still wraps around the block.
- BJ's Restaurant & Brewhouse: Still serving Pizookies to the masses.
The fact that these restaurants are still doing well proves the location is prime. People want to be there; they just have nothing to do once they finish their burger. The "bones" of the area are good, but the "meat" is currently missing.
Comparing Laguna Hills to Other Mall "Zombies"
This isn't just an OC problem. Look at what happened to the Westminster Mall or the old Northridge Mall. They are all following the same trajectory:
- Decline of the anchor store.
- Years of "placeholder" tenants (think Spirit Halloween and weird rug liquidators).
- Massive demolition.
- Rebirth as "Luxury Apartments with a Starbucks downstairs."
The Laguna Hills Mall CA is just in stage three and four simultaneously. It’s a messy transition. What makes this site unique is the sheer wealth of the surrounding area. The buying power in Laguna Hills and Laguna Woods is massive, but it's an aging demographic that is being replaced by young families who want different things than their parents did. They want "third places"—spots that aren't home and aren't work, but where you can exist without necessarily spending $100.
The Timeline: When Will it Be Done?
If you're looking for a ribbon-cutting ceremony next month, keep dreaming.
Phased construction is the name of the game here. The residential components will likely go up first because that’s where the immediate money is. The retail "lifestyle" center will follow once there are actual residents on-site to support the shops. We are looking at a multi-year rollout that will likely stretch toward the end of the decade before the full vision of the "Village" is realized.
Actionable Insights for Residents and Visitors
If you live in the area or are looking to move to South OC, here is the ground truth about the Laguna Hills Mall CA situation:
- Don't wait for the mall: If you need a traditional shopping experience, your best bets remain the Shops at Mission Viejo or Irvine Spectrum. Both are within a 10-15 minute drive.
- Watch the Real Estate: The property values in the immediate vicinity of the mall are likely to fluctuate. Once construction on the new residential towers hits full swing, expect noise and dust, but a long-term bump in value once the "Village" amenities actually open.
- Voice your opinion: The City of Laguna Hills still holds regular meetings regarding the specific plan amendments for the site. If you're worried about the traffic on El Toro Road, those meetings are where the actual engineering decisions are discussed.
- Support the remaining businesses: The restaurants on the perimeter (King's, BJ's, etc.) are essentially surviving in a construction zone. If you want a vibrant "Village" in the future, keep those anchors alive now.
- Expect detours: Expect Avenida de la Carlota to be a mess for the foreseeable future. Use back routes through Moulton Parkway if you’re trying to bypass the 5 freeway congestion during peak hours.
The story of the mall is far from over. It’s just moving from its "retail giant" era into its "urban density" era. It’s a bit of a bumpy ride, but for a piece of real estate this valuable, something big is inevitable.
Next Steps for Staying Updated:
Check the official City of Laguna Hills Planning Division website for the most recent "Village at Laguna Hills" environmental impact reports. These documents contain the actual maps and architectural renderings that show exactly where the new buildings will sit relative to existing streets. You can also sign up for city council newsletters to get alerts on public hearings regarding traffic mitigation and park space allocations within the new development. For historical context or to see old photos of the mall's heyday, the Laguna Hills Historical Society often features archives of the 1973 opening and subsequent renovations.