Conflicting claims are flying around Point Loma these days regarding the property at 1004 Rosecrans — where a proposed four-story, 56-unit mixed-use project right next to the elementary school was on deck to be constructed. But community opposition quickly developed led by a grassroots group called Protect Point Loma — and it was recently announced that the owner / developer wanted to sell the site instead.
That was good news.
People in PL began celebrating – and started trying to find a developer and local investors who would create a more neighborhood-friendly project.
Eric Law, chair of both the Peninsula Community Planning Board and Protect PL, told Times of San Diego that the sale of the property / project to local investors would benefit everybody — seller, buyer and the community as a whole.
Law said Protect Point Loma is working with Peninsula developers of one sort or another with the idea of producing a different type of development that would be better for the community. He said real estate comparables, or “comps,” in the area are substantially lower than what the developer wants for 1004 Rosecrans.
“We’ve had a couple of other investors look at it as well as some local businesses who want to lease the property,” said Law. “So, there’s a market for this property — but not at what the developer wants others to pay for it.”
A statement on the Protect Point Loma website had the following statement, confirming Law’s optimism, dated Feb.26:
We have good news and bad news.
Bad news first. The buyer who had the property in escrow dropped out and the property is now out of escrow. She did not get enough investors ahead of the Friday 02/20/26 deadline to move forward with purchasing1004 Rosecrans.
On behalf of the Protect Point Loma group, we thank her for doing her utmost to make this happen.
Now for the Good News. There are several Point Loman developers who are interested in purchasing the property. We are actively supporting them to get the property sold and developed consistent with the Community’s interest.
We’ve also been contacted by interested investors that could build a supporting team to acquire the property. If you are interested in joining a team of investors, please let us know! It is crucial to purchase this property for the community before it gets unleashed to other potential developers that could possibly continue to build a monstrous project. We hope that there are a few of you in the community that can step up to the plate and invest in this beautiful historical landmark. Please send us a message to connect you to the investment group or to acquire more information.
Yet, the current owner – developer, Michael Contreras, founding owner and chief executive officer of Northstar LLP, the project’s developer, explained to the Times his situation, but also made claims that the opposition to the project was circulating “misinformation” about the project.
“The proposed building will be a maximum of 30 feet tall, which is only 3 feet higher than the metal rod currently on top of the existing structure,” he said. “There have also been inaccurate drawings circulated that misrepresent the building’s scale. The actual design is intended to be a beautiful addition to the neighborhood.
“Claims that there is no residential parking are incorrect. The plan includes 45 parking spots designated exclusively for residents.”
Contreras also dissed those opposed to his project, echoing common YIMBY complaints.
“It is disappointing to see such opposition from those who already live in the area and benefited from previous developments,” Contreras added. “I believe this project will greatly enhance the community for new families.”
If the property does not sell within a few months, Contreras said he would build it himself. He told the Times:
“The property is currently listed with a broker. We are asking $5.2 million. But I would be open to offers around $4.8 million, provided there is a short due diligence period.”
He said a previous local investor fell through during escrow, but they are seeing new interest from potential buyers, the Times reported.
“We have invested significant time and resources into the development plan for 1004 Rosecrans Street. However, due to my current involvement in two other large-scale projects, I have decided to put this property on the market.”
Still, Law, the head of Protect PL, was pleased and remained optimistic. He said, as the Times reported, it was telling that the property was now for sale, rather than the developer forging ahead.
“The rental market has gone flat — even depressed — right now. It’s down about 5%,” Law said.
Here is the balance of the Times article:
The 1004 Rosecrans development proposal would use a density bonus through the city’s Complete Communities program, which seeks to bolster housing and mobility. The density bonus is awarded for the inclusion of residential units deemed affordable for lower-income households. …
For the proposed Rosecrans building, eight of the 56 proposed apartments have reportedly been designated as affordable.
The site was previously occupied by the San Diego County Credit Union. Law pointed out that the building, formerly a bank, adds more complexity to the task of trying to purchase and redevelop that property. Bank buildings are somewhat expensive to redevelop, because demolition of the bank vaults they contain is a high-risk process demanding specialized skills, equipment for vault removal, and careful planning.
Residential and commercial neighbors near the site are arguing that the redevelopment project, as now proposed, lacks enough parking, which would further compound traffic along Rosecrans and Talbot streets and create safety problems for Cabrillo Elementary School next door to the property.
The state density bonus law was established in 1979 and has been expanded over the years. It requires cities to grant waivers and incentives for projects with units deed-restricted for low-income households. The law was updated recently to clarify that it supersedes local voter initiatives.
