San Diego Council Approves Lease for 247 Affordable Housing Units at 101 Ash Street

The San Diego City Council approved a 60-year lease agreement with developers MRK Partners and cREate Development to convert the long-vacant 21-story 101 Ash Street building into 247 affordable housing units, including studios and apartments with up to three bedrooms for families earning between 30% and 80% of the Area Median Income. The project will also feature 25,000 square feet of retail space, 4,000 square feet allocated for a below-market-rate childcare center, and 240 on-site parking spaces. This redevelopment addresses the building's asbestos contamination discovered after city employees moved in under a 2017 lease-to-own deal, which had kept the building vacant for over six years and cost taxpayers approximately $2.5 million annually. The lease allows the city to offload a costly, unused asset while ensuring affordability covenants compliant with the Surplus Land Act. Councilmembers emphasized the importance of moving forward to avoid further maintenance costs and to restore public trust by revitalizing the downtown skyscraper. The developers will pay $45.6 million over the lease term, with the first payment deferred for 15 years, and plan to finance part of the renovation by pursuing historical designation for the building.