Locally based Terramar Retail Centers is proceeding with a $40 million renovation of the Old Police Headquarters building in downtown San Diego’s Seaport District.

Workers have removed original building elements, including windows, doors, tiles and fixtures, which will be restored and reused as part of the project, according to Carlsbad-based Terramar. Three existing buildings, set around an interior courtyard, are being transformed into a planned collection of up to 30 shops and restaurants, spanning approximately 100,000 square feet.

According to the Port of San Diego, the property was built in 1939 and served as headquarters for the San Diego Police Department until 1987. It is listed on the National Register of Historic Places.

Earlier this year, port officials entered into a new long-term lease with Terramar, requiring a complete renovation of the building. The developer is retaining most of the building’s historic elements, including roof tiles, doors, ironwork and light fixtures, and will be working with merchants to incorporate their brands into the historic facades.

Terramar has planned the project with architecture firm Carrier Johnson and general contractor Legacy Building Services.

The building is at 501 Pacific Highway, adjacent to the Terramar-owned Seaport Village. Terramar Retail Centers owns and operates 24 centers totaling more than 3.6 million square feet in the western U.S.