SAN DIEGO | Boom Rundown, Vol. 2

[bgrapes]

Work seems to be picking up at 8th and B. I noticed some new progress on my walk yesterday:

[Streamliner]

Nice. Hope they get moving soon. I'd love a redesign that makes the tower less bland, but anything that can go up should.

Anyone been to Radd lately? I heard some of the walkways are opening up but I haven't seen much online about it.

[JSW]

Originally Posted by Streamliner

Nice. Hope they get moving soon. I'd love a redesign that makes the tower less bland, but anything that can go up should.

Anyone been to Radd lately? I heard some of the walkways are opening up but I haven't seen much online about it.

I have direct view of the site from my place and construction has definitely resumed. The pause was due to change of plans from rentals to condos- which I don't think affected the exterior because the downtown constuction map was updated by the city since it was approved, and the only change listed was that it's now condos. But I suppose you never know.. they're not always super thourough with public facing info.

We should know more once the sales office opens up- which is on the broadway corner of Diega next door.

[DTthomas]

Originally Posted by Streamliner

Anyone been to Radd lately? I heard some of the walkways are opening up but I haven't seen much online about it.

I live a few block away and yes, many of the walkways are open now. Some of the retail locations even have there signs up (Rivian, A blinds store, and a cocktail lounge). Hopefully they'll be more announcements soon.

[Jhanson312]

Originally Posted by DTthomas

I live a few block away and yes, many of the walkways are open now. Some of the retail locations even have there signs up (Rivian, A blinds store, and a cocktail lounge). Hopefully they'll be more announcements soon.

This made me go do some research. I’m just now realizing how retail-oriented the RaDD development is. They’re some new renders in their retail leasing brochure. If this gets some cool tenants (It definitely will), it will be a much bigger boost to downtown than I was expecting.

[Streamliner]

Thanks all for the update on RaDD. I like that there's a lot of retail there. Should be a popular addition to the area with all the tourists/locals who naturally gather in that area. It's a good neighbor for Seaport Village.

[Streamliner]

Incredibly disappointing if this is what the Ritz Carlton replacement is going to look like. We went from a height-limit-hugging tower to a generic building that's barely a midrise. Zero presence on the skyline. Completely hidden from Petco Park views. 400 units is great of course, but it could have been so much more impactful with at least a tower. Vantage Point is also a full block and fits nearly 700 units. Park12 fits over 700. I know financing is an issue and building a tower is more complicated than this, but still.

I love this city but stuff like this makes it hard sometimes:



I don't have a subscription to the U-T, but here's the link where I found this plus a short description:

https://www.sandiegouniontribune.com...ical-milestone

An ambitious plan by a local affordable housing developer to build more than 400 low-income units in downtown San Diego has reached a key milestone that will allow the city to start negotiating terms for redeveloping a site once intended for a five-star Ritz-Carlton hotel.

If approved by the full City Council at a subsequent hearing, Chelsea would have 180 days to firm up its development and financing plans and undertake more detailed inspections of the East Village site to ensure that its affordable housing project is in fact doable.

[jornelas]

It is awful. An insult to the neighborhood. I live in one of the buildings nearby and I reached out to our HOA and they are looking the other way. I guess that is how you pull this off...without view obstruction...

[mello]

Ok all these projects falling through because money actually has a cost now and the fantasy land of super low rates following the 2008 crash have finally come to an end because inflation took forever to show up. Rates are still at below historical average and ahhh we can't build anything now. Such a joke. Oh and we will just wait for rates to come down, uh the only reason they will is when there is a massive crash or financial system has seized up and that won't be good either.

Reality is back and all of these developers will simply have to adjust to that or nothing will get built again. Like one person said a few posts ago they have made a killing these last 13 years.

Question about when developers actually "get their financing" projects like Manchester Fairmount and the Mission Valley River Walk have been planned for so many years now wouldn't they have had their financing back in 2022 before rates spiked? When does a developer actually get their rate? Those who didn't see higher rates coming after Trillions were flooded in to the system post Covid were very myopic who would think that all those printed up currency units wouldn't cause inflation hence higher rates

[unpermitted_variance]

I'm glad the Manchester Fairmont project is stalled. Maybe it will die and something less insulting will get proposed there instead.

[Jhanson312]

Originally Posted by mello

Ok all these projects falling through because money actually has a cost now and the fantasy land of super low rates following the 2008 crash have finally come to an end because inflation took forever to show up. Rates are still at below historical average and ahhh we can't build anything now. Such a joke. Oh and we will just wait for rates to come down, uh the only reason they will is when there is a massive crash or financial system has seized up and that won't be good either.

Reality is back and all of these developers will simply have to adjust to that or nothing will get built again. Like one person said a few posts ago they have made a killing these last 13 years.

Question about when developers actually "get their financing" projects like Manchester Fairmount and the Mission Valley River Walk have been planned for so many years now wouldn't they have had their financing back in 2022 before rates spiked? When does a developer actually get their rate? Those who didn't see higher rates coming after Trillions were flooded in to the system post Covid were very myopic who would think that all those printed up currency units wouldn't cause inflation hence higher rates

Higher interest rates aren't stopping development where regulations are loose. Despite recent challenges, cities like Austin and Miami continue to see new projects and maintain a healthy level of activity. I know that Florida and Texas have fundamentally different political landscapes, but CA is becoming increasingly YIMBY. The effects of easier permitting could counter higher interest rates, especially if we continue to see serious pro-housing legislations like we did last year.

[mello]

Originally Posted by unpermitted_variance

I'm glad the Manchester Fairmont project is stalled. Maybe it will die and something less insulting will get proposed there instead.

I wouldn't be surprised if he isn't shopping the lot/project to other developers. What else is going to pencil on that parcel besides a big bulky corporate hotel to maximize the amount of rooms. It's rare that hotels have a curvy glass shape but maybe something better will come in, how long will that take though...

[k1052]

Originally Posted by Jhanson312

Higher interest rates aren't stopping development where regulations are loose. Despite recent challenges, cities like Austin and Miami continue to see new projects and maintain a healthy level of activity. I know that Florida and Texas have fundamentally different political landscapes, but CA is becoming increasingly YIMBY. The effects of easier permitting could counter higher interest rates, especially if we continue to see serious pro-housing legislations like we did last year.

There is a bill in the state legislature that lets developers delay payment of development fees until they get a certificate of occupancy and governments can't charge interest on them. This would provide a major incentive for cities to get permits out the door quickly and lean on utilities to make connections in a timely manner.

[Jhanson312]

So you’ve probably heard Fashion Valley is getting 850 apartments plus 100k square feet of retail and restaurants which will replace JCPenney. That’s great, but the timeline is perplexing. According to most news outlets, the store will close in late 2025 and the apartments will be completed late 2026. 850 units in a single year? What am I missing?

http://https://www.cbs8.com/article/...3-29de31170355

[SDCAL]

From Ritz to Shitts. Can’t say much else about that monstrosity

[Streamliner]

Some good news at least:

‘Simply not going to be dissuaded’: San Diego moves ahead with sweeping plans to urbanize neighborhoods

By David Garrick
May 30, 2024 5:53 PM PT
Link to Article

Hillcrest and University City got one step closer to becoming more urban and heavily populated Thursday when the San Diego Planning Commission approved aggressive new growth blueprints for both neighborhoods.

The new blueprints, which aim to double the populations of both neighborhoods within 30 years, now move to the City Council’s housing committee in mid-June and then the full council for final approval in July.
The Planning Commission’s unanimous vote came despite ardent opposition from many residents in both neighborhoods. They raised concerns about insufficient parks, gentrification, congestion and evacuation routes.
Planning commissioners said the two neighborhoods are ideal for high-rise housing and dense development because they are already job centers in appealing locations with strong demand for housing.

They characterized Hillcrest and University City as the two city neighborhoods that could best be described as a second downtown for San Diego.
“The university neighborhood’s always been our second downtown,” said Commissioner Matthew Boomhower. “More housing and employment options here make so much sense.”

The proposal for University City would add more than 64,200 residents, nearly doubling the neighborhood’s current population of 65,400. It would do that by adding just over 30,000 housing units.

The proposal for Hillcrest would add 17,000 new homes, some of them in buildings with 20 stories or more. It would swell the population of Uptown — a wider area that also includes University Heights, Mission Hills and Bankers Hill — from about 40,000 to more than 100,000 by 2050.

Of course this all means that we will allow for denser development in these neighborhoods. As seen elsewhere in the region, even when an individual project is approved, it doesn't mean it gets built in a reasonable timeframe.

[bgrapes]

Had a nice walk around Downtown today and thought I'd share some pics.

5th and Ash Hotel



Front and A







West (Front and Broadway)



The Lindley





IQHQ/RaDD – the north part is still closed off:









IQHQ/RaDD – middle courtyard area:





IQHQ/RaDD – nice spaces, but little signs of life or anything coming soon:









IQHQ/RaDD – the only "coming soon" sign I saw was for Rivian:



IQHQ/RaDD – view from the Tuna Harbor Dockside Market





800 Broadway

[JerellO]

Great photos!! That park/courtyard looks beautiful. Hopefully more signs of life begin to see the space and start leasing.. maybe that could attract biotech

[mello]

Originally Posted by JerellO

Great photos!! That park/courtyard looks beautiful. Hopefully more signs of life begin to see the space and start leasing.. maybe that could attract biotech

I thought this whole thing was built for Biotech and had companies ready to move in that is why this RADD company paid for such expensive land to build this space on. Don't tell me this project doesn't have tenants for all the office and lab space The retail is one thing but if this is going to be an empty white elephant biotech project good grief... There was an article in the UT about Biotech in the County being at a 14% vacancy rate and there is still tons of space in the pipeline that is UC and will be ready this year or by next summer.

[aekrid]

Originally Posted by mello

I thought this whole thing was built for Biotech and had companies ready to move in that is why this RADD company paid for such expensive land to build this space on. Don't tell me this project doesn't have tenants for all the office and lab space The retail is one thing but if this is going to be an empty white elephant biotech project good grief... There was an article in the UT about Biotech in the County being at a 14% vacancy rate and there is still tons of space in the pipeline that is UC and will be ready this year or by next summer.

I'm a little more optimistic. Anecdotally I've noticed a lot more commercial leasing activity downtown west of 1st. Ave compared to east of it.