Shaheen Sadeghi, the developer behind Costa Mesa’s innovative anti-malls and Anaheim’s hip food hall, the Packing House, is setting his sights on Garden Grove.

On Tuesday, the commercial real estate developer entered an agreement with the city to build retail, office, cafe and market space near the civic center complex. The council unanimously approved the plan.

“The concept is to create a small cottage community,” said city manager Scott Stiles. “Maybe a little coffee shop here, a little yoga studio there. It would be mixed use in character.”

Sadeghi told the council he was enticed to restore existing residential structures and emphasized providing a space for local vendors who reflect the fabric of the community.

The Cottage Industries project involves 17 properties that would be bought, leased and subleased by Sadeghi’s company, LAB Holding. The developer will buy 12 single-family homes for $3.38 million, while the remaining five parcels will be leased. Escrow is expected to close in November, and the project should be completed in three years, according to city documents.

The Housing Authority properties Sadeghi is acquiring are scattered along 7th, 8th and 9th streets, Acacia Parkway and Garden Grove Boulevard. The plan is part of the city’s overall “Re:Imagine Garden Grove” campaign to revitalize the Civic Center area.

Sadeghi, a former surfwear executive, founded his Costa Mesa-based real estate development firm in 1991. Since then, the company has grown to 110 employees. In 1993, LAB Holding renovated an abandoned goggle factory to open its first small business retail space – the Lab anti-mall in Costa Mesa. Almost a decade later, Sadeghi’s company would open the Camp, a similar retail concept, across the street. Three years ago he opened the trendy food hall in a historic 1919 packing house in Anaheim.

More recently, Sadeghi’s company entered an exclusive negotiating agreement with the city of Newport Beach to renovate the Balboa Theater into a venue for independent musicians.

Contact the writer: lwilliams@ocregister.com, 714-796-2286