Diversification of C.J. Segerstrom & Sons began in 1943 when the federal government began construction of a preflight training school in Costa Mesa. They acquired fourteen hundred acres of land for the base where forty-five thousand service personnel trained. To support the base, known as the Santa Ana Army Air Base, the government ran a railroad spur line from the Greenville Bean Growers Association warehouse into the Army Air Base commissary and warehouse area located south of Baker Street and east of Harbor Boulevard. To construct the rail line, the government condemned a narrow right -of-way frontage along Harbor Boulevard that belonged to the Segerstroms.

After the war, the government declared the air base, including the two and a half mile railroad spur, surplus property. C.J. Segerstrom & Sons tried to reacquire their frontage property that had been condemned but the federal government would not segregate the land that they had purchased from them. Rather they made it a part of a sale of 76 acres of land that included the 2.5-mile long railroad spur reaching from Greenville to Costa Mesa as well as 110,000 square feet of warehouses comprising eleven buildings. The Segerstroms purchased it all in 1948.

This acquisition of warehouses pushed the firm’s annual income to exceed $100,000, which was approximately the amount the Segerstroms paid for the 76 acres, the railroad spur line, and the 110,000 square feet of warehouses from the federal government.

In order to develop the new properties, the firm needed to garner leases for the warehouses. With no experience in commercial real estate, C.J. Segerstrom engaged E.S. Goodner, a broker in Santa Ana, who proved to be ineffectual with generating leases. The unseasoned Henry T. Segerstrom stepped forward to take charge and make his first major advancement for the family business: leasing the warehouses within a six-month period.

Each lease required a separate board of supervisors specific use variance permit. Henry went to the board hearings for each individual lease for approval. During this process, it became evident that land use zoning would drive the future value of their land. With that in mind, C.J. Segerstrom & Sons, with Henry at the helm, applied to the board of supervisors for the industrial zoning of their 800 acres.

The first two lessees were with Western Canners in Newport Beach and Anaheim Truck & Transfer Company. The remaining lessees reflected the rapidly changing economy of the new post-war Costa Mesa. These businesses included Wilson Mill & Cabinet that made cabinets for new public schools and a lease for a cold storage and freezing warehouse for frozen orange juice that was pioneered in Fullerton, California. Additionally, the family business grew further when they leased warehouses to the John J. Foster Company, a pioneer developer and manufacturer of stainless steel honeycomb core used for airplanes.

Two major companies would eventually build their regional headquarters in the Segerstrom Industrial District. Standard Pressed Steel manufactured high-end steel desks and office furniture. They would eventually build a large manufacturing and corporate office on Harbor Boulevard south of Warner Avenue. The second major company was the Voit Rubber Company, relocating from Los Angeles to Harbor Boulevard near Sunflower Avenue.

Diversification of C.J. Segerstrom & Sons began in 1943 when the federal government began construction of a preflight training school in Costa Mesa. They acquired fourteen hundred acres of land for the base where forty-five thousand service personnel trained. To support the base, known as the Santa Ana Army Air Base, the government ran a railroad spur line from the Greenville Bean Growers Association warehouse into the Army Air Base commissary and warehouse area located south of Baker Street and east of Harbor Boulevard. To construct the rail line, the government condemned a narrow right -of-way frontage along Harbor Boulevard that belonged to the Segerstroms.

After the war, the government declared the air base, including the two and a half mile railroad spur, surplus property. C.J. Segerstrom & Sons tried to reacquire their frontage property that had been condemned but the federal government would not segregate the land that they had purchased from them. Rather they made it a part of a sale of 76 acres of land that included the 2.5-mile long railroad spur reaching from Greenville to Costa Mesa as well as 110,000 square feet of warehouses comprising eleven buildings. The Segerstroms purchased it all in 1948.

This acquisition of warehouses pushed the firm’s annual income to exceed $100,000, which was approximately the amount the Segerstroms paid for the 76 acres, the railroad spur line, and the 110,000 square feet of warehouses from the federal government.

In order to develop the new properties, the firm needed to garner leases for the warehouses. With no experience in commercial real estate, C.J. Segerstrom engaged E.S. Goodner, a broker in Santa Ana, who proved to be ineffectual with generating leases. The unseasoned Henry T. Segerstrom stepped forward to take charge and make his first major advancement for the family business: leasing the warehouses within a six-month period.

Each lease required a separate board of supervisors specific use variance permit. Henry went to the board hearings for each individual lease for approval. During this process, it became evident that land use zoning would drive the future value of their land. With that in mind, C.J. Segerstrom & Sons, with Henry at the helm, applied to the board of supervisors for the industrial zoning of their 800 acres.

The first two lessees were with Western Canners in Newport Beach and Anaheim Truck & Transfer Company. The remaining lessees reflected the rapidly changing economy of the new post-war Costa Mesa. These businesses included Wilson Mill & Cabinet that made cabinets for new public schools and a lease for a cold storage and freezing warehouse for frozen orange juice that was pioneered in Fullerton, California. Additionally, the family business grew further when they leased warehouses to the John J. Foster Company, a pioneer developer and manufacturer of stainless steel honeycomb core used for airplanes.

Two major companies would eventually build their regional headquarters in the Segerstrom Industrial District. Standard Pressed Steel manufactured high-end steel desks and office furniture. They would eventually build a large manufacturing and corporate office on Harbor Boulevard south of Warner Avenue. The second major company was the Voit Rubber Company, relocating from Los Angeles to Harbor Boulevard near Sunflower Avenue.

Annexation of the city of Costa Mesa into the city of Santa Ana had been an ongoing conflict for many years. The first attempt to annex part of the city of Costa Mesa into Santa Ana occurred in 1928 but was defeated by a five to one vote. Trying again in 1953, Santa Ana and Newport Beach launched another effort to annex Costa Mesa. C.J. Segerstrom & Sons became embroiled in this battle between the cities. The Segerstroms owned unimproved land located between these two cities that were quickly growing and needed to expand. Costa Mesa had already annexed land as far a Baker Street.

When the city manager of Santa Ana made a house visit to the Segerstroms announcing that Santa Ana planned to annex land as far as to Baker Street and crush the fledging city of Costa Mesa, the Segerstroms interpreted this announcement as a threat to their enterprises. Since a significant amount of C.J. Segerstrom & Sons’ property was already committed to the new city of Costa Mesa, C.J. Segerstrom & Sons feared their property would flounder under the incorporation of Santa Ana. The consequence of this threat resulted in the family firm annexing Costa Mesa from Sunflower Avenue and MacArthur Boulevard.

As part of the annexation negotiations, C.J. Segerstrom & Sons took the position with both cities of Santa Ana and Costa Mesa that this particular acreage of their land was zoned for farming and their property was undeveloped. Concurrently, the Mayor of Costa Mesa at the time, Alvin Pinkley, (who also served on the Costa Mesa Water District Board), was well aware of Costa Mesa’s need to gain access to a new independent water supply from the underground basin. Costa Mesa did not have any deep well production but Santa Ana had an abundant domestic water supply from deep wells. C.J. Segerstrom & Sons asserted they had no need for schools, a fire or police department, arguing that if their land was to be incorporated into either Costa Mesa or Santa Ana, they should not have to pay for municipal services until such time as their land would be developed.

After many negotiations, Mayor Pinkley formulated the idea that the city of Costa Mesa could lease water rights from land owned by C.J. Segerstrom & Sons and accordingly, could develop its own underground water resources, share in the use and redevelopment of some of C.J. Segerstrom & Sons deep wells, and create an independent water supply for the city of Costa Mesa. Compensation for these water rights would be equivalent to all of the municipal taxes needed to cover the annexed acreage. Judging this idea to be acceptable and fair, C.J. Segerstrom & Sons entered into an agreement of annexation. The city of Costa Mesa leased the Segerstroms’ water rights and developed wells and in turn, the city reimbursed C.J. Segerstrom & Sons for property taxes for unused city services.

Investments opportunities were on the horizon as were the negotiations for the section of the San Diego Freeway that was to pass through Costa Mesa. The family business remained acutely aware of these developments. The opening of Disneyland in 1955 was also consequential to C.J. Segerstrom & Sons as the family studied the impact it would have on the price of orange groves in the area. The family firm considered buying orange grove acreage in Anaheim near Disneyland but regrettably there was no consensus within the family to purchase any acreage.

Henry Segerstrom decided to attend some of the first public hearings on development of the San Diego Freeway in 1952. The State Division of Highways showed plans to route the freeway through the Talbert area south of Warner Street. This was one of the first studies. The state’s initial plan was to have the San Diego Freeway cross into this area at the point where Harbor Boulevard crosses over the Santa Ana River, significantly north of the final alignment. C.J. Segerstrom & Sons did not have the staff to negotiate with the state on their own so hired a man named Harry Evans Terrell who was a professional land planner. During the negotiating process, Terrell died but C.J. Segerstrom & Sons continued the contract with Terrell’s widow. After a few years, Henry and his brother-0in-law, Gene Moriarty, decided to take a continuing education class in urban redevelopment with professor Ted Adsit. The class never materialized but Henry decided to hire Ted Adsit to work for them as a land-planning consultant. Having a professional background as city manager of Riverside and as city manager of Salinas, he was adept in government affairs. He represented Segerstrom interest in the realignment of the freeway.