When Fort Ord closed in 1994, it left behind more than 28,000 acres of decommissioned military land on the Monterey Peninsula, and an economic crater that gutted the surrounding community of Marina almost overnight. For most developers, it represented an environmental, logistical, and financial gauntlet. For Don Hofer, Vice President of Community Development for Shea Homes' Northern California Division, it represented something else entirely: an opportunity hiding in plain sight.
The result is The Dunes on Monterey Bay, a first-of-its-kind master-planned coastal community that has transformed one of America's largest abandoned Army bases into a fully functioning beach town, complete with diverse residential neighborhoods, a curated retail and dining promenade, miles of coastal trails, and healthcare and hospitality infrastructure built for long-term livability.
It has taken more than two decades of patient work, entitlement processes, environmental remediation, infrastructure buildout, and community engagement at a scale that would have deterred most operators. Hofer, who has overseen 10,000-plus homes for Shea since 1998, describes the approach simply: "Building a coastal destination requires long-term vision and careful planning. At The Dunes, every detail was designed to create an inviting environment."
The Land and Its Legacy
Fort Ord's history is extraordinary by any measure. Between 1940 and 1975, an estimated 1.5 million Americans trained within its grounds, at peak, 50,000 soldiers in a single year. Among them was a young Clint Eastwood, stationed there as a swimming instructor during the Korean War before his honourable discharge in 1953 launched him toward Hollywood via the GI Bill.
That history presented both an asset and a liability. The land carried significant environmental challenges alongside a Monterey Peninsula location of extraordinary natural value: Pacific coastline, proximity to Fort Ord National Monument, and easy access to Carmel-by-the-Sea, Pebble Beach, and Carmel Valley wine country. Unlocking that potential required the kind of long-term commitment and operational complexity that only the most experienced developers could navigate, and Shea's willingness to do exactly that is central to the project's business story.
A Mixed-Use Model Built for Modern Buyers
The Dunes is deliberately not a subdivision. Hofer's position, and the development's core competitive advantage, is that today's buyers are choosing a lifestyle, not just a home.
That belief is reflected in every layer of the project. Residential offerings span four distinct collections, Sky House, Light House, Bay House, and Rooftops, serving buyers from first-time coastal purchasers to multi-million-dollar estate buyers. The Dunes Promenade functions as a genuine main street, anchored by Trader Joe's and supported by a tenant mix including Century Theatres, The Brass Tap, Tous les Jours bakery, and professional services ranging from Bay Federal Credit Union to Monterey Bay Orthodontics.
Healthcare infrastructure, often an afterthought in master-planned communities, is a deliberate feature here, with the Montage Medical Clinic, a Kaiser Permanente campus, and the VA DOD Center, the first facility in the nation purpose-built to serve both veterans and active-duty military personnel under one roof.
The Bottom Line
In a California housing market defined by chronic undersupply, regulatory complexity, and buyer demand for something beyond the standard offer, The Dunes represents a credible blueprint for what ambitious adaptive reuse can achieve at scale.
"Today's homebuyers aren't just choosing a home," Hofer says. "They're choosing a lifestyle."
The fact that he chose to live there himself may be the most persuasive data point of all.
The Dunes on Monterey Bay offers townhome-style homes with rooftop decks, single-family residences, and duet homes in Marina, California. Visit DunesbyShea.com or call 866-OWN-SHEA. Shea Homes has built more than 100,000 homes since 1968 across eleven U.S. states.
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