San Diego may be set to close a long, contentious chapter in its civic real estate history. At the center of the saga is the 21‑story tower at 101 Ash Street—once envisioned as city offices but nearly immediately vacated when pervasive asbestos contamination was discovered. What followed was a drawn-out lease-to-own arrangement, lawsuits, and ultimately—by 2022—a costly $86 million settlement to secure clear ownership of the property.
Today, city planners are forging ahead with a bold adaptive-reuse plan. At its July 29 session, the San Diego City Council was slated to consider a $267 million proposal: converting the high-rise into 247 affordable rental units, designed for families earning between 30% and 80% of Area Median Income (AMI). As part of a 60-year ground lease, this encompassing project also includes at least 25,000 square feet of street-level retail and a 4,000‑square‑foot childcare center—multi-use components aimed at revitalizing the neighborhood. The city itself would retain ownership of the land and improved building at the lease’s end.
Still, skepticism and scrutiny remain. Originally estimated at $250 million, costs have climbed by nearly $17 million, pushing the per-unit cost above $1.1 million—raising concerns among taxpayers and watchdogs. The developer is requesting roughly $88 million in low-income housing tax credits and $36 million in historic tax credits to help fund the project.
Why It Matters
If approved, the 101 Ash Street conversion will mark San Diego’s largest office‑to‑residential transformation yet, offering hundreds of affordable homes while repurposing a vacant liability into civic infrastructure. It also signals a shift toward adaptive reuse—a sustainable, resilient solution in a post-pandemic world of surplus office space and soaring housing needs.
