After being stalled for several years by setbacks in the real estate economy, residential and commercial projects are set to sprout at the long-awaited, 210-acre Millenia mixed-use development in Chula Vista.
“Part of it is a better climate for construction lending, but a lot of it is pent-up demand for housing,” said Todd Galarneau, executive vice president of San Diego-based Meridian Development, which is managing the project on behalf of property owner and master developer Stratford Land.
“There’s a tremendous shortage of housing right now in San Diego County,” he said.
Approved in its current form in 2009, but in planning for nearly a decade, Millenia has been envisioned by developers and
Chula Vista government leaders as a “City Center of South County.” It is expected to entail about $4 billion in development by the time it is fully built out in 15 to 20 years in multiple phases.
Long-term plans call for more than 3,000 homes — including apartments and for-sale housing — with 2 million square feet of offices, 1.5 million square feet of retail, and numerous public open spaces and civic amenities.
The project broke ground in 2013 but is only now seeing significant development momentum, thanks largely to an improving post-recession housing and construction economy. Galarneau said roads and most other infrastructure are in place for the community’s first phase, with grading for the balance of the community scheduled to start by December.
Six Parks
Located primarily in eastern Chula Vista, Millenia is bounded by Birch Road to the north, Eastlake Parkway to the east and state Route 125 to the west. The development’s first apartment neighborhood, the 273-unit Pulse by Fairfield Residential, is nearing completion at Birch Road and Eastlake Parkway, with move-ins scheduled to start within a few weeks.
Under construction just south of Pulse is Stylus Park, a 1.9-acre public park scheduled for completion this year, and one of six parks planned long-term for Millenia.
Meridian officials said San Diego
developer Sudberry Properties is set to start construction in mid-2016 on an
11-acre gateway retail center, directly south of Otay Ranch Town Center and adjacent to state Route 125. Developer Trammell Crow Residential is currently seeking city entitlements for a 309-unit, mixed-use apartment and retail development, with construction tentatively scheduled to begin in April 2016.
Other upcoming elements include a 135-room, full-service Ayres Hotel, expected to start construction by mid-2016; Shea Homes’ 176-unit development of townhomes and single-family homes, starting construction in the first quarter; and Chelsea Investment Corp.’s 210-unit affordable apartment community, also set to start in the first quarter.
Meridian Communities, the homebuilding arm of Meridian Development, has started site development on three attached residential condo neighborhoods in Millenia — called Metro, Trio and Evo — with a total of 216 units of various sizes, prices and product types, including two-story townhomes and triplexes.
Millenia was originally master-planned by San Diego’s Corky McMillin Cos., which was joined in 2011 by Stratford Land of Dallas as an equity partner. Stratford acquired majority interest in the project from McMillin earlier this year.
Galarneau said Millenia’s developers are in talks with locally based Chesnut Properties, to eventually develop a 26-acre office campus at Millenia, the first seven-acre phase of which could break ground in mid-2016.
A Hub
Developers and city leaders see Millenia as an urban-style, walk-friendly environment currently not available in Chula Vista, which could create jobs, house local workers, and provide those residents with on-site places to shop and dine.
“It will be the densest development in the city of Chula Vista,” said City Manager Gary Halbert, noting that local leaders envision the project creating employment along with relatively affordable housing for workers and families. It is expected to create a sense of place by way of central gathering spots to serve eastern Chula Vista, while still being sustainable and walkable in order to minimize new vehicle traffic.
Halbert said arrangements being worked out by the San Diego Association of Governments, the region’s planning agency, should significantly expand regional bus service to the area within the next two or three years, linking Millenia and other neighborhoods on the eastern side of Chula Vista with the city’s western portion and destinations to the north.
Long-term, Millenia is expected to link up via public transit with two other long-planned projects on the city’s radar: development of the 550-acre Chula Vista bay front on the city’s western side with hotels, restaurants and residential elements; and formation of a 375-acre university and innovation district in eastern Chula Vista, both of which are in mid-planning stages.
Not Enough Rooms
Galarneau said Millenia should provide needed full-service hotels for the city’s business and visitor communities, in an area long deemed underserved by hotels. Developers and planners are also seeking to tap into a revived cross-border economy, which has recently seen development of a border terminal bridge linking South County to the Tijuana airport, as well as significant upgrades to land crossing points and highways. More business-focused improvements are slated at San Diego’s Brown Field municipal airport in Otay Mesa.
San Diego County has long experienced a shortage of housing relative to demand, due to factors including limited land availability, high land pricing, strict building regulations and other barriers to entry. South County has long been more affordable than other parts of the region in terms of land and building costs, but the post-recession demand and construction climate has only recently moved in favor of large new residential projects that are not solely focused on luxury product.
Industry research provider Dodge Data & Analytics recently reported that the county’s residential construction starts – including apartment and single-family projects – are running 62 percent ahead of a year ago, with building permits pulled for $1.13 billion worth of projects in the first seven months of 2015. Non-residential projects, by contrast, are running 73 percent behind the year-ago pace, with new projects valued at $684.8 million.