Walnut Grove, located in the City of Arroyo Grande, was a joint venture with Arroyo Grande Community Hospital, a Catholic Healthcare West facility. The project included the expansion of the hospital and the construction of 30 high density residential multi-story units along the Arroyo Grande Creek.
The project required an Environmental Impact Reports as required by SEQUA due to its frontage on the Arroyo Grande Creek which is designated a blue line stream by the Environmental Protection Agency and controlled by the Army Corps of Engineers.
Many environmentally sensitive issues needed to be addressed to develop the property. Among these were assisting the city with a failed outfall structure entering the creek from adjacent residential areas, and excavation and discovery of Chumash Indian village sites located along the creek. These issues were mitigated through cooperation with all governing agencies and the infrastructure's construction was started in 2008.
The hospital super pads were delivered in 2009 and the last of the residential units closed in 2013. This project also provided units for affordable housing.