Another multifamily project could be coming to the heart of San Diego with a development site at 8929 University Center Lane recently placed up for sale in the University Town Center neighborhood. The site, known as Horizon, is currently home to two fully-leased medical office buildings standing on a total of 2.64 acres, but could yield close to 700 units if re-developed as a multifamily offering.
The marketing efforts are led by Newmark’s Senior Managing Director Chris Benton and Managing Director Anthony Mulstein on behalf of the property’s owner, an entity linked to UCMP LLC, according to public records. Pricing guidance is undisclosed.
Originally built in 1988, the 41,500 square foot medical office buildings are fully leased with leases expiring in November 2024, which would offer a developer maximum flexibility relative to the timing of construction and delivery along with current income to offset pre-development carry costs.
The marketing materials list a potential yield for the site of close to 659,000 square feet of net rentable space, which could include up to 696 residential units with 10 percent of occupancy dedicated to affordable housing. It could further offer underground parking on 2.5 levels below ground. Re-development of Horizon would be through a ministerial and non-discretionary application process, with approval contingent only on acceptance of a building permit through an over-the-counter process with city staff.
Bordered by University Center Lane and Caminito Plaza Centro, the property is situated immediately next to US Interstate Highway 5 and within walking distance of the Nobel Station of San Diego’s Mid-Coast Trolley light rail system. It is also in close proximity to the newly renovated Westfield UTC Mall, to the University of California San Diego and 10 minutes from the Pacific Ocean.
Horizon is also located in a Transit Priority Area in one of San Diego’s most pro-development and rapidly transforming urban suburbs. Surrounded by a growing innovation economy, University Town Center is a center of commerce, includes many local amenities, and is home to a top-tier university system. The University Community Plan update that includes the neighborhood aims to further develop this trade area, by enhancing density, high-frequency transit services and tier-one commercial development.
San Diego has seen plans for other residential projects in recent months. Recently, $99.4 million in construction financing and preferred equity was secured for developing Ion Aero, a 302-unit mid-rise multifamily community located at 8555 Aero Drive in neighboring Kearny Mesa submarket. The Registry recently covered this eight-story project that is set to offer a variety of living options, featuring studio, one-bedroom, two-bedroom, and three-bedroom units spanning from 500 square feet to 1,400 square feet. The development will also feature a wide array of community amenities, such as an indoor-outdoor fitness center and yoga studio, a co-working space, a spacious clubroom with both indoor and outdoor entertaining areas, a playground, a dedicated dog run, a luxurious pool and spa and a seventh-floor sky lounge.
