In a move that would create hundreds of affordable homes and other public amenities, the City of San Diego is proposing to lease the building at 101 Ash St. in Downtown for redevelopment.  

On Tuesday, July 29, during its 2 p.m. session, the City Council will consider a Ground Lease Disposition Agreement with 101 Ash Venture LP, a California Limited Partnership. 101 Ash Venture LP plans to turn the currently vacant office building into 247 affordable homes for households earning between 30% and 80% of the area median income (AMI)—those at most risk of becoming homeless. The homes will be a mix of studio, one-, two-, and three-bedrooms to help serve a variety of family sizes.   

The project will also help revitalize the area and enhance the quality of life for residents by including at least 25,000 square feet of retail space and a 4,000-square-foot childcare center for children ages 0 to 5.  

The project supports the City’s housing and equity goals, as well as the City’s Economic Development Strategy goals, and also aligns with Council Policy 700-10, which prioritizes leasing over selling surplus public land. 

In 2022, the City initiated a process to explore redevelopment opportunities for the site, with a focus on affordable housing as a priority. This adaptive reuse proposal will relieve the City of ongoing maintenance and security costs following the close of the two-year escrow period, while also generating long-term revenue through rent and loan payments. 

The proposal outlines that 101 Ash Venture LP will lease the building “as-is” and be responsible for the environmental review and all design, entitlements and construction. At the end of the 60-year lease, the City will retain ownership of the land and the fully-improved building, securing long-term benefits for the community.  

In its commitment to transparency, early last week the City released documents pertaining to the project. This includes the Ground Lease Disposition Agreement, the City and Developer’s appraisals and the Economic Opportunity Report.  

101 Ash Venture LP anticipates financing the project with multiple funding sources, including tax credits, and has two years to secure financing. The City will not contribute cash to the project but will loan the value of the building, including a 4% interest, to help finance the project. The developer is required to provide regular updates on the status of funding commitments to the City, and if financing is not secured by that time, the developer or the City can terminate the agreement.  

Construction on the project is anticipated to start as soon as the spring of 2026, marking the start of a transformative project that will bring new life and opportunities to Downtown San Diego.