BY RAY HUARD
Published: July 6, 2021
Silvergate Development based in Point Loma is building new apartment projects in Chula Vista as part of what’s becoming a growing push for development in the city’s west side that had long been ignored.
“We’re doing a lot down there,” said Thomas Edmunds, development manager of Silvergate Development.
Until recently, most of the new development has been in Chula Vista neighborhoods east of Interstate 805 and in nearby Otay Mesa.
Silvergate is among several developers that are focusing on infill projects in or near the city’s core, especially along the revitalized Third Avenue.
“It’s really great to see that happen,” Edmunds said.
He said Silvergate Development Principals Ian Gill and James Reynolds have long promoted development in Chula Vista’s west side.
Among Silvergate’s latest Chula Vista projects are The Broadway, a 62-unit apartment complex at 260 Broadway; a 31-unit apartment complex at 230 Church St, and a 170-unit project on Bonita Glen Drive south of Bonita Road and west of Interstate 805.
The $17 million 260 Broadway project replaced a former service station and car repair lot in a more industrial area of downtown between E and F streets, Edmunds said.
The apartments at 260 Broadway range from about 600 square feet to just under 1,000 square feet with monthly rents ranging from about $1,800 to $2,400.
Still under construction, the $9.5 million project at 230 Church St. has three stories of one-bedroom apartments atop a gated garage with 25 parking spaces.
The apartments at 230 Church St. range from a little less than 600 square feet to about 690 square feet with monthly rents ranging from about $1,800 to a little more than $2,000, Edmunds said.
The goal is to finish construction of 230 Church St. by March or April 2022, Edmunds said.
The $55 million Bonita Glen project, renamed Union Apartments, will have apartments ranging from 515 square feet to about 1,100 square feet with monthly rents ranging from about $1,800 to about $2,600, Edmunds said.
With six three-story buildings and one four-story building on a 5 ¼-acre site, the Bonita Glen Drive complex is bigger than Silvergate’s usual project and a bit removed from the urban core unlike the company’s other projects but still in what’s considered the city’s west side.
“It’s really more of a lifestyle-type of project,” Edmunds said. It will include a pool, fitness center, storage area, playground and a place for cookouts.
Construction should be finished in June 2022, Edmunds said.
Edmunds said Silvergate is attracted to “the secondary markets throughout San Diego County” such as Chula Vista and La Mesa, targeting middle income renters who’ve been left behind in a housing market where prices for single-family homes and condominium units have risen at or near record levels.
“We typically build a three-story walk-up project that is targeted on the missing middle of affordability,” Edmunds said.
Silvergate plans to hold onto the projects it builds for the long term, Edmunds said.
“It is so difficult to get these things entitled, permitted and built, to sell them, just doesn’t seem right,” Edmunds said.
Edmunds credited Deputy City Managers Kelly Broughton and Eric Crockett and the city’s revitalization of Third Avenue for creating a welcoming atmosphere for developers in Chula Vista’s older neighborhoods as well as a program that allows builders to defer development fees for a period.
“The neighborhood’s coming back more lively than ever,” Edmunds. “We feel that these infill developments that we’re doing are synergistic. They put residents within walking distance of the small restaurants and shops that need the support, putting butts in the seats, so to speak.”
Crockett said the fee deferral “finally opened the door to high-quality high-density development” downtown and in other older neighborhoods.
“When these new projects are filled in with residents, Third Avenue will have thousands of new people to support the small business community located not only along Third Avenue but all the small businesses located in western Chula Vista,” Crockett said.
Edmunds said Silvergate is attracted to Chula Vista in part because it has a strong employment base because of its proximity to nearby Navy bases and shipyards.
He said about 80% if the tenants in Silvergate’s Chula Vista projects are military with the rest typically a mix of health care workers, first responders and teachers.
“It’s just a great market for us and for our product specifically,” Edmunds said.
Headquarters: Point Loma
Founding Partners: Ian Gill and Jim Reynolds
Business: Housing developers
Notable: Silvergate Development’s founders and principals have more than 120 years of combined experience in every facet of real estate development – finance, construction and asset management. The leadership team has completed more than $1 billion of projects.
Contact: 619-625-1260; [email protected]
Click here for the original San Diego Business Journal article.