Keyser Marston advised Civic San Diego in its negotiations for a Disposition and Development Agreement (DDA) with Cisterra Development Company for a landmark mixed-use project in San Diego’s East Village, “7thand Market”. The project was subsequently approved by the City Council on October 20, 2016.

The ambitious project will be built out on a block bounded by Seventh, Eighth, and Island avenues and Market Street, a strategic location between Petco Park and the Gaslamp Quarter.

The DDA provides for the terms and conditions of the sale of the property to Cisterra for $20,000,000, which KMA determined to be the fair reuse value after taking into account numerous public benefits, such as affordable housing, public parking, urban open space, and other features included in the project. Additionally, the development is anticipated to generate a projected $1.5 million in sales, property, and hotel room taxes annually.

The project is unique relative to other Downtown developments with its innovative mix of uses in a single building comprising two towers. The development includes housing for all income groups, in addition to Ritz Carlton hotel units and residences, in 19- and 39-story towers. Key components of this complex and dense mixed-use project include:

• * 40,000-SF Whole Foods grocery store
• * 153-room Ritz-Carlton Hotel
• * 59 Ritz Carlton branded condominium units
• * 156,000 SF of Class A office space
• * 125 market-rate apartments
• * 34 affordable housing units
• * Ground floor restaurant/retail
• * 6,000-SF public open space
• * 229 public parking spaces
• * 662 below-grade parking spaces

Ground floor retail space will be anchored by a second-floor Whole Foods grocery along with future restaurant space, while a 6,000-SF plaza will be open to the public. Meanwhile, the historic three-story Clermont Hotel, currently occupying a portion of site, will be restored and maintained as a 53-room residential hotel.