This project created 42 units of much-needed affordable housing in the heart of downtown San Diego’s Barrio Logan neighborhood, part of an ongoing revitalization effort that includes the nearby Petco Park and other projects. This older, historically Latino neighborhood is a mix of residential and commercial uses, but was allowed to deteriorate over the years, becoming dominated by unsightly, poorly maintained and environmentally challenged properties. The site for this project was, in fact, a former auto wrecking and junk yard. As the first new housing of any kind or affordability to be developed in this neighborhood in many years, Gateway Apartments will play a key role in stabilizing and strengthening the area.

Its four stories over two levels of underground parking – along with a separate two-story community center – offer an attractive contrast to surrounding older, rundown structures. The strikingly modern design features natural stone accents, a warm color palette, upper-level common-area balconies with a view of the downtown skyline, and an inviting central courtyard with trellises and seating areas. The greatest opportunity associated with this project was to deliver housing that was not only attractive and of the highest quality, but would also be affordable to low-income residents.

It also afforded the development team the opportunity to create a close, effective partnership with the City of San Diego and its redevelopment agency, which demonstrated its commitment to meeting its affordable housing needs – as well as the ongoing redevelopment of Barrio Logan – by supporting the project with $3.6 million in city funding. We believe the success of Gateway will serve as a catalyst for further revitalization and reduction of blight in the area by spurring the future development of additional new housing, both affordable as well as market rate.

One major challenge was the size of the site – only 0.8 acres on an irregularly-shaped parcel. This required creation of a highly space-efficient site plan, resulting in four stories over two underground parking levels, along with construction of the community center separate from the main building on one corner of the parcel. The spacious interior courtyard also represents an innovative use of available space, bringing a feeling of openness and light to the community. In keeping with our commitment to provide affordable housing that is at least comparable to market-rate product, Gateway includes such amenities as built-in appliances; walk-in closets; cable TV hookups; professional landscaping; laundry rooms; barbecue areas; a tot lot; gated access; and the previously-noted community building, with full kitchen, computer learning center with free Internet service and other facilities. It is located near public transit, schools, child care, medical services, shopping and recreational facilities, including downtown’s historic and popular Gas Lamp District.

As a result of working closely with a local arts council, the project also features an aesthetically appealing streetscape of Latino-themed murals, drawing attention to the neighborhood’s history and enhancing cultural pride. The project was made possible thanks to a multi-layered financing package that consisted of $8.6 million in 9% Federal Low-Income Housing tax credits, $2.7 million in State of California tax credits, and the above-referenced loan of $3.6 million from the city’s Redevelopment Agency, which also initially acquired the site and re-zoned it for residential housing as part of its downtown redevelopment zone. Both construction and permanent financing ($8.1 million and $1.3 million, respectively) were provided by Bank of America.

The project includes 42 large 2-bedroom as well as extremely scarce 3-bedroom apartment homes up to 1,189 square feet, designed especially for working families with children who either could not afford to live in the area – close to their places of employment – or else had few safe, decent alternatives they could afford. All apartments at Gateway are set aside for households earning a maximum of 30% to 60% of the area median income for San Diego County. Starting at only $498 per month, rents are well below those for existing apartment housing in the area (typically $1,100 to $2,000 per month and higher), and even further below apartments comparable to Gateway in terms of quality and amenities offered. Market studies showed an enormous demand for such new housing.

In addition to the previously-noted common area and unit amenities, a variety of on-site social services are being offered to residents, including computer workshops and other educational classes, English as a second language classes for non-English speaking residents, etc. We believe that the provision of these resources will enable residents to improve their employment and life skills, leading to better opportunities for them in the future.

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