The Horton Plaza campus, a cherished landmark in downtown San Diego, is facing an uncertain future as its ambitious redevelopment plans hit significant financial roadblocks. Originally poised for revitalization, the site was set to feature more than 700,000 square feet of office space and over 300,000 square feet of retail, promising over 3,000 jobs and an annual economic impact of $1.8 billion, according to Stockdale Capital Partners.
However, recent developments have cast doubt on that bright future. According to NBC 7, the developer is reportedly dealing with more than $350 million in debt, with multiple liens filed against the property.
This financial strain has raised concerns regarding the continuation of the redevelopment efforts. “Over the last year or two years, it has significantly slowed down since the interest rates have skyrocketed,” stated Tony Franco, founder of Franco Realty Group. He noted that the cost of construction loans has surged from around 4% or 5% to over 10%, alongside rising construction costs.
Franco attributed the slowdown in development to these financial hurdles and broader market forces. “What we’re seeing right now across San Diego is that all the developments happening have been projects that were locked in a couple of years ago when conditions were more favorable. The interest rates and permits were secured back then, which is why there’s a massive slowdown in development now,” he explained.
