Developer Doug Manchester’s $1.5bn plan to redevelop Navy property on San Diego’s waterfront with hotels, offices and restaurants will break ground in June 2018.
Manchester Financial Group has secured financing to start construction of its Manchester Pacific Gateway development.
Occupying eight city blocks, the 3m ft² project involves multiple office towers, including a 17-storey, 372,000ft² Navy headquarters; 1,100-room convention hotel; retail-lined ‘paseo’; and a museum on more than 12 acres south of Broadway between Pacific Highway and Harbor Drive.
Project manager Perry Dealy said instead of obtaining a conventional loan, the developer is funding the $1.5bn development with the help of outside equity contributions from domestic investment funds tied to some of the largest Fortune 500 companies, including pension funds.
The Manchester Financial Group, the managing general partner on the project, will have an equity stake, which will be less than 50% at the end of the three-year construction period.
The project comprises seven buildings, and a 1.9-acre public park, replacing the Navy Broadway Complex, which the Navy has occupied since the early 1920s.
The developer began demolishing part of the older buildings in 2017.
Some of the office buildings, including the new Navy headquarters, are targeted to be completed by the end of 2020 and the remainder of the project is expected to be completed by mid-2021.
The development will include a 29-storey, 524,000ft² office tower; eight-storey, 178,000ft² office building; six-storey, 153,000ft² office tower; 290,000ft² of retail; and a 260-room luxury boutique hotel.
Meanwhile, the Port of San Diego and Chula Vista have approved a public-private partnership (PPP) agreement to completely redevelop the 553-acre Chula Vista Bay Front.
The $1.13bn waterfront redevelopment project on the west coast will begin with the Chula Vista Bayfront resort hotel, which will have 1,600 rooms, and a 415,000ft² convention centre project on San Diego Bay with 275,000ft² of convention and meeting space.
According to development services director Kelly Broughton, the Chula Vista Bayfront project will provide more than 200 acres of parks and open space, a shoreline promenade, walking trails, RV camping, shopping, dining, and also establish ecological buffers to protect wildlife habitat, species and other coastal resources.