Real estate

Combo hotel, residential, retail tower planned

J Street Space, a San Diego-based real estate investment and development firm, has acquired Tower 180, the 25-story tower office building and 8-story midrise annex building in Downtown San Diego, and intends to convert the property into a combination of hotel, retail and residential units. The price was not disclosed. The project currently comprises a mostly empty office space and ground-floor retail. Completion is targeted for mid-2026.

The tower was originally built in 1963 as the United States National Bank Building, and the annex was added in 1973. The project has had multiple owners over the years, most recently having been purchased in June 2016. It subsequently underwent a full building facade and lobby renovation, a full mechanical systems upgrade, and the retail spaces in the annex building were leased.

County awards $42 million for affordable housing

The County of San Diego has awarded $42 million to nine affordable housing developments that will provide about 872 new homes.

Those selected developments came from a pool of 24 proposal requests totaling more than $89 million for affordable housing across the region. The distribution of the funds was previously approved by the County Board of Supervisors.

Of the nine developments, three will be on County excess land and two on publicly owned land belonging to the MTS.

One of the developments on county excess land is in Downtown San Diego on Sixth Ave. The county awarded $4 million to BRIDGE Housing’s Kindred, which will include 124 units, 63 of which are for extremely low income households.

Home sales down

San Diego County home sales took another dive in November, according to the Greater San Diego Association of REALTORS® (SDAR) which compiles data on the current home sale market through the San Diego Multiple Listing Service (SDMLS). This is typical during the holiday season.

Single-family resale home sales fell by more than 17% in November, compared to October, while attached properties (condominiums and townhomes) were nearly 15% lower than the previous month. Homes were spending an average of 28 days on the market in November prior to close of escrow.

The median price of single-family homes ticked up by 2% in November to $980,000, which is more than 11% higher than a year ago.

Meanwhile, SDAR announced the new CEO of SDMLS, Saul Klein. Klein has spent nearly 50 years in real estate and is most notably known as the father of technological integration and internet adoption in the residential real estate industry. He was the creator of one of the first online real estate communities, RealTalk, and an original member of the REALTOR.com team.

Record lows in San Diego’s industrial market

Kidder Matthews Quarter 4 report had some major findings about San Diego’s economy, including that leasing volume dropped to a new 15-year low of 1.8 million square feet (SF) while rental prices are at a record high of $1.59/SF NNN. Meanwhile, sale prices fell 27% YOY to $286/SF.

Concurrently, sublease availability reached a historical high, almost a quarter of the total available inventory. This uptick can be partly attributed to Amazon giving back approximately 600K SF since 2022.

Moderation in the San Diego industrial market is expected to continue into the new year due to high interest rates and economic concerns. Rent growth will continue to slow, and although vacancies and availabilities have been rising, it is predicted that it will max out and hit its peak in the coming quarters.

The report also found San Diego’s unemployment rate at 4.2%, higher than last year’s estimates but not a change from the previous month. This compares with an unadjusted unemployment rate of 4.9% for California and 3.5% for the nation during the same period.

Positive projection for restaurant, retail space

Urban Property Group (UPG), a real estate services firm specializing in urban and coastal commercial property, observed interesting trends for the local commercial real estate market in 2023 and has insights for what CRE can expect in 2024.

In 2023, San Diego’s Downtown, especially the Gaslamp and Little Italy neighborhoods, as well as the North Coastal neighborhoods saw strong metrics for restaurant and retail leases. UPG has executed 38 leases in San Diego totaling over $31 million in consideration and 12 sales totaling over $44 million, with the most recent sale in Gaslamp of 951-955 5th Ave. for $4.9 million.

“Throughout this year, we noted a consistent flow of small-scale development and repositioning deals,” said Joe Brady, Principal of UPG.

Looking ahead to 2024, UPG anticipates a shortage of space to lease and expects the slow pace of large projects and developments coming to market to persist.

Food and drink

Dry January mocktail offerings

Some use Dry January as a time to reset from holiday celebrations, while others opt to avoid alcohol for health reasons – more energy or better sleep, among many more. But choosing to forego drinking in January doesn’t mean people can’t enjoy a deliciously crafted mocktail from these San Diego spots.

Karl Strauss, San Diego’s longest-operating post-Prohibition brewing company, has released its first ever non-alcoholic beer on the brink of its 35th anniversary in February. Non-Acoholic Red Trolley is available in 12-oz cans exclusively at Karl Strauss’ five San Diego County locations, including the new San Marcos Outpost beer garden concept. The alcoholic Red Trolley Ale (5.8% ABV) is one of the brewery’s core beers, an Irish Style Red Ale that is an 11-time Gold Medal winner at various regional, national, and international brewing competitions. This new take on the beer is “non-alcoholic, still iconic.”

Coco Maya, Little Italy’s rooftop taste of the Caribbean will celebrate Dry January with the refreshing, non-alcoholic You Can Get It in the Morning with Ritual Tequila (0% ABV), cucumber, ginger, lime, and Topo Chico

Mocktail company to be sold at Sprouts, Whole Foods

!MPROV Booze-Free Cocktails, the brainchild of craft beverage veterans James Murray and Alex Brooks, is making a splash in the Adult Non-Alcoholic Beverage market as they launch at Sprouts locations nationwide and Whole Foods in Southern California, Nevada, and Arizona starting Jan. 1, 2024.

Murray and Brooks boast strong backgrounds in beverage with brands like Ballast Point Brewing Company, Coronado Brewing and Latitude 33 Brewing. Drawing on their expertise, they introduced !MPROV in July 2022 to cater to individuals seeking an alternative to alcohol at social gatherings, celebrations, or simply for relaxation.

For more information, visit https://improvcocktails.com/.

Cloak & Petal’s new Otsumami menu

Chef Rob Cassidy is celebrating his one-year anniversary at Little Italy’s premier sushi and bar destination, Cloak & Petal with the launch of a new menu.

The new hot menu Otsumami focuses on shared plates that are simple, straightforward, and pay homage to classic Japanese culinary techniques. New offerings include grilled Spanish wild octopus, Kalbi short ribs, and another addition to Little Italy’s pasta promenade with vegan spicy garlic noods.

In addition, Cassidy, who has over two decades experience in sushi, revamped the Sashimi menu, introducing house-infused salts, oils, and refreshing citrus notes to elevate each bite.

Nonprofits

Feeding SD adapts to law banning food waste

Feeding San Diego, the county’s leading hunger relief and food rescue organization, will be working with a new type of food donor this year: large-scale businesses that serve up massive quantities of purchased and prepared foods. As outlined by Senate Bill 1383, California’s Short-Lived Climate Pollutant Reduction Law (which first went into effect for tier 1 businesses on January 1, 2022), as of January 1, 2024, the following businesses must donate edible surplus food to food recovery organizations like Feeding San Diego: hotels, restaurants more than 5,000 square feet or with 250+ seats, health facilities with onsite food facilities and 100+ beds, state agency cafeterias, local education agencies, and large venues and events.

Feeding San Diego has long prioritized food rescue to source the food that’s distributed out into the community. In its last fiscal year, 76% of the food distributed was rescued from local food donors and then distributed throughout the community to people in need of food assistance. The zoo and Hotel del Coronado are large organizations that already donate their food waste voluntarily.

California is just one of a handful of states across the country that has passed legislation to curb food waste to mitigate climate change. According to CalRecycle, organic waste in landfills emits 20% of the state’s methane, a climate super pollutant 84 times more potent than carbon dioxide. California has a goal to redirect 20% of edible food currently thrown away to people in need by 2025.

Financial Wellness Wednesdays return

From January through March, SDCCU will host complimentary financial webinars aimed at improving the financial health of those in our community in partnership with the county library’s Live Well San Diego program.

In another partnership in October, SDCCU collected and donated 11,058 books to help support the efforts of the San Diego County Library (SDCL) to promote literacy throughout San Diego County.

Financial Wellness Wednesdays webinar topics rotate weekly. The current schedule is located at sdccu.com/fww.

$22 million grant to help fund climate-resilient projects

San Diego Foundation and Environmental Health Coalition have been awarded $22 million by the California Strategic Growth Council for their Transformative Climate Communities application to help fund climate-resilient projects that will preserve, protect and strengthen San Diego’s central historic barrios.

Red Cross seeks volunteers

The American Red Cross of San Diego and Imperial Counties asks readers to resolve to make a difference and support their community by becoming a volunteer in 2024. The request comes as the Red Cross is responding to more extreme weather disasters due to climate change.

“We’re seeing both the frequency and intensity of disasters increase due to extreme weather,” said Debbie Pari, Regional Volunteer Services Officer for the American Red Cross Southern California Region. “Across the country, the Red Cross is responding to nearly twice as many large disasters as we did a decade ago to help people. This uptick in responses means we need more volunteers. The need to help has never been greater.”

Visit redcross.org/volunteertoday to sign up for opportunities with the Red Cross.

Prebys Foundation supports unhoused students

Monarch School, the only public K-12 school in the U.S. serving exclusively unhoused students, was selected as a Prebys Foundation grant recipient, receiving $250,000 for youth success, financial stability and economic opportunity work.

“Last year with Prebys Foundation’s support, we were able to provide assistance to more than 200 students and alumni with life skills such as workforce assistance and opportunities, college readiness and financial literacy,” said Monarch School Project’s president and CEO Afira DeVries. “This year, we are grateful to be selected and will continue helping students with pathways to internships, employment, postsecondary education and other goals that will build a successful future for these individuals.”

Father Joe’s day center has record enrollees

Father Joe’s Villages, San Diego’s largest homeless services provider, has released the latest iteration of its Compassion in Action report, showing an uptick in new enrollments for critical day center services.

The latest “Compassion in Action: Our Neighbors by the Numbers” report, which covers the month of November, showed 421 new enrollments at the Neil Good Day Center, which is operated by Father Joe’s Villages and offers services such as laundry, mail, cell phone charging and more. That is the highest number this year. The organization also served a total of 2,713 clients with day center services, the most since May.

Additionally, the report showed that the organization served 4,027 total clients in November and offered 26,590 total shelter bed nights. The Village Health Center served 995 people with street health, dentistry, mental health, and psychiatric services.

People to watch

San Diego Foundation awards $90k to CNN Hero of the Year

San Diego Foundation announced a $90,000 grant to the 2023 CNN Hero of the Year, Dr. Kwane Stewart. Stewart, who split his award money with the other Top 10 Heroes, received the recognition for founding Project Street Vet, an Encinitas-based nonprofit that helps people experiencing homelessness care for their pets by providing free veterinary care, treatment and support.

“The work of Dr. Kwane Stewart is commendable, touching countless lives of the most vulnerable among us and their beloved pets,” said Mark Stuart, president and CEO of San Diego Foundation. “We hope this grant will help him continue to make a difference in the community and inspire others through his commitment and acts of selflessness.”

After receiving the CNN Hero of the Year award, Stewart announced he would share the grant among the Top 10 Heroes equally. San Diego Foundation’s leaders committed the grant for Project Street Vet to recognize the valuable contributions of Stewart to the San Diego County communities he proudly serves.

While Stewart is based in North County, he has provided services to unhoused people in Downtown San Diego as well.

Paul Rodriguez appointed San Diego County public defender

The County of San Diego has appointed Paul A. Rodriguez as the new public defender. The aim of the position is to ensure that people charged with a crime in state court who are financially unable to retain private counsel receive a rigorous defense.

Prior to assuming this position, Rodriguez served as the El Cajon branch supervisor of the Public Defender Office, where he provided support to more than 50 attorneys and staff. He joined the Public Defender Office as an intern before graduating from the University of San Diego School of Law.

Molly Teas named Outstanding New Attorney

Higgs Fletcher & Mack attorney Molly H. Teas has been selected as the Outstanding New Attorney by San Diego Defense Lawyers (SDDL), and she will receive the award at the organization’s 39th Annual Installation Gala on Jan. 27, 2024. The Outstanding New Attorney award is presented annually to one outstanding defense attorney in recognition of their success and overall achievements in law.

Teas’ practice primarily focuses on the transportation industry, where she defends trucking and rideshare companies in personal injury litigation. She also has experience in premises and product liability defense as well as representing individuals in trust litigation. Additionally, Teas is admitted to the Intertribal Court of Southern California where she defends local federally recognized Indian tribes in injury and premises liability cases.

Gregory Smith named SDCCD Chancellor

Gregory Smith, who has served as acting chancellor of the San Diego Community College District since March, has been selected by the SDCCD Board of Trustees as the district’s new permanent chancellor.

Smith’s appointment is pending final approval of his employment contract, to be considered at the next Board of Trustees meeting on January 25, 2024. He is set to become the district’s seventh chancellor in its 50-year history.

Government updates

Transportation measure to be on ballot

The Let’s Go! San Diego Coalition announced that the campaign’s recent signature drive has successfully qualified the regional transportation measure with more than 125,000 projected valid signatures from San Diego County residents. The coalition received official notice from the Registrar of Voters and the campaign to push for passage on November 5, 2024 is already in full swing.

If approved by voters, Let’s Go! San Diego will fund much-needed repairs and updates to transportation infrastructure throughout all of San Diego County, including fixing roads and potholes; adding carpool lanes; expanding bus and rail services; fixing the crumbling coastal rail line; adding an airport rail connection; making safety improvements to bridges, sidewalks, and bike lanes; and ensuring transit passes are affordable for seniors, youth, and the disabled. These investments will also create thousands of local union jobs in construction and transit operations.

City adopts complete streets policy

The San Diego City Council has adopted the City’s first-ever Complete Streets Policy, which reflects and guides the City’s commitment to provide a safe, comfortable and accessible transit circulation system that meets the mobility needs of everyone. This policy is intended to provide guidance to improve mobility governance and implementation in the City aligned with the City’s General Plan and Climate Action Plan.

“Complete Streets” refers to a concept that roadways should be designed with all users in mind, not just motorists. Making travel convenient and accessible for people of all ages and abilities, regardless of their mode choice continues to be a citywide priority.

City of San Diego hourly minimum wage increases to $16.85

Many San Diegans saw an increase in their pay when the City of San Diego’s minimum wage went up in the new year. Effective Jan. 1, 2024, employees who perform at least two hours of work in one or more calendar weeks of the year, within the geographic boundaries of the City of San Diego, will receive a minimum wage increase from $16.30 to $16.85 an hour. The change is in accordance with the city’s Earned Sick Leave and Minimum Wage Ordinance, approved in 2016.

City adopts complete streets policy

The San Diego City Council has adopted the City’s first-ever Complete Streets Policy, which reflects and guides the City’s commitment to provide a safe, comfortable and accessible transit circulation system that meets the mobility needs of everyone. This policy is intended to provide guidance to improve mobility governance and implementation in the City aligned with the City’s General Plan and Climate Action Plan.

“Complete Streets” refers to a concept that roadways should be designed with all users in mind, not just motorists. Making travel convenient and accessible for people of all ages and abilities, regardless of their mode choice continues to be a citywide priority.

Future USS John L. Canley to be commissioned

The future USS John L. Canley will join the active fleet Feb. 17, with a commissioning ceremony at Naval Base Coronado’s Naval Air Station North Island in San Diego. The first of its name, the ship honors Marine Corps Sgt. Maj. John L. Canley, Ret., who was awarded the Medal of Honor 50 years after his actions during the Battle of Hue City in Vietnam. He died May 11, 2022 in Bend, Ore.

Business and economy

Report ranks San Diego International Airport as best in nation for layovers

San Diego ranks as the number one U.S. airport for layovers, according to a report by leading travel expert Upgraded Points. San Diego International Airport scored an impressive 76.8 out of 100, leading the pack of 50 of the nation’s busiest airports. With 36 restaurants, 41 shopping options, 13 charging stations per mile, and 57 off-airport restaurants per 10,000 daily passengers, the airport is a haven for those with extended layovers, the report said.

Study: San Diego Community College District has a $4.5 billion economic impact

A recent study found that the San Diego Community College District has a $4.5 billion economic impact on San Diego County, with massive advantages to students, taxpayers and society from the education students receive at the district’s four colleges. The study was by Lightcast, a leading provider of economic and labor market data, and was based on data from the 2021-2022 academic year.

The district’s $4.5 billion economic impact supports 42,121 jobs, or one of out of every 53 jobs in San Diego County, the report said. The district’s economic impact is reflected in the jobs that graduates attain in high-demand industries because of their education, the cost of running the institutions, and the costs of construction at the college campuses. The district’s $4.5 billion economic impact supports 42,121 jobs, or one of out of every 53 jobs in San Diego County, the report said. The district’s economic impact is reflected in the jobs that graduates attain in high-demand industries because of their education, the cost of running the institutions, and the costs of construction at the college campuses.

$100 million impact seen for 2025 World Road Run Championships

San Diego will host the World Athletics Road Running Championships Sept. 26-28, 2025 — a foot race extravaganza patterned after the Carlsbad 5000 and Rock ‘N’ Roll Marathon. And possibly a major windfall for the local economy — rivaling the $165 million brought in by Comic-Con. A mile race, 5K road race and half-marathon will be contested in and around Balboa Park, with “peoples” races for all age groups and abilities, say local organizers.

Google search annual report

For a look into the San Diego psyche, Google released a report of the top searches from San Diego IP addresses in the past year. On a range of topics, this gives insight into what San Diegans want to know more about. The top concerts searched for were of course Taylor Swift’s Eras Tour and Beyonce’s Renaissance Tour. Tours from co-headliners Drake and 21 Savage, Peso Pluma, and Modonna took up the remaining top five spots.

As for places San Diegans wanted to go, “Pickleball courts near me” was the top search – highlighting the growing popularity of the sport. Locals also wanted to find optometrists, pawn shops, pilates and barber shops. The top five tv shows searched for in order are: “The Last of Us,” “Beef,” “Daisy Jones & the Six,” “The Idol,” and “Shrinking.”

Searches with “vs” in the bar demonstrate some of the one-time sports events most watched by locals. Al Nassr vs PSG, Japan vs Mexico Baseball, Dillon Danis vs Logan Paul, Inter Miami vs Cruz Azul, and Jake Paul vs Tommy Fury Time made this list.

Evofem Biosciences acquired for $100m

Evofem Biosciences, the San Diego-based pioneer of the only FDA-approved, hormone-free birth control gel, has been acquired by Aditxt Inc. for $100 million.

Aditxt is an innovation activation company dedicated to building an ecosystem of emerging healthcare innovations, especially for conditions, diseases, and health matters that are underrepresented.

Sempra named to Dow Jones Sustainability Index North America

Sempra has been named to the Dow Jones Sustainability Index (DJSI) North America for the 13th consecutive year, earning recognition as a high performer in risk management, stakeholder engagement, policy influence, and information security/cybersecurity, among other areas. Sempra released its latest annual corporate sustainability report in May 2023, highlighting 25 years of advancing sustainable business practices.

Calif. hunger soaring

According to USDA food insecurity data — a way of measuring food hardship analyzed by Hunger Free America — across California, 11.5% of residents, or 4.4 million people, lived in food insecure households from 2020-2022. This includes 15.3% of children in the state (1,325,451), 8.8% of employed adults (1,589,299), and 7.6% of older California residents (642,976).

Hunger Free America attributes the surge in food insecurity to the expiration of the expanded Child Tax Credit and universal school meals. Many federal benefit increases have either gone away entirely, or are being ramped down, even as prices for food, rent, healthcare, and fuel continue to soar.