Tom York on Business: San Diego Joins National Adaptive Reuse Boom with 556 Apartments in Pipeline

Apartments-for-rent website RentCafe has released the results of a study on adaptive reuse apartments.

The concept of adaptive reuse, when apartments are repurposed from existing commercial or industrial buildings, has become a major trend as the demand grows nationwide for new housing.

According to the report, San Diego is poised for a boom in adaptive reuse apartments, with at least 556 units planned, a turnabout from 2023 when no adaptive reuse apartments came to market.

However, San Diego did not rank in the top 20 list of cities leasing the adaptive reuse trend.

“This was in stark contrast to other locations such as Manhattan, which completed 733 apartments (all from offices); Richmond, VA, with 622 units delivered; or even unexpected players like Alameda in the Bay Area, which opened 372 units in 2023,” according to a spokeswoman

Seventy percent of the new apartments coming online are units converted from offices.

The 556 units coming line come from the following sources: 393 from offices, 100 from retail and 60 from a former hotel.

Meanwhile, cities in the region, such as Vista, are besting San Diego in terms of creating new apartments from old buildings.

Vista has 652 new adaptive reuse apartments underway.

Nationwide, adaptive reuse projects jumped 17.6% from the previous year.

In an era dominated by environmental concerns, adaptive reuse offers a sustainable alternative to new housing construction, explained a spokesman for the parent company of RentCafe.

“The process minimizes the environmental impact associated with demolition and the production of new materials, making it an eco-friendly approach to design and construction.”

* * *

The median U.S. asking rent rose 0.8% year over year in May to $1,653 — the highest level since October 2022, according to a new report from residential real estate portal Redfin.

That’s the second consecutive increase (rents climbed 0.9% year over year in April) following 11 months of decreases, according to a news release.

Rents rose 0.5% on a month-over-month basis.

But San Diego is bucking the trend, in a positive direction.

Median rents here dropped 8.7% to $2820 (60% higher than the national level).

“Rents are falling in the Sun Belt in part because the region has been building more apartments than other parts of the country to meet demand brought on by the influx of people who moved in during the pandemic,” said Redfin in the release. “But the pandemic housing boom is now in the rearview mirror, and property owners are facing vacancies, causing rents to cool.”

* * *

Financial institution Mission Fed Credit Union has promoted Steve Hasbrooke to chief financial officer.

According to a news release, the 17-year Mission Fed veteran is a valued member of the senior leadership team and in his new position, he will oversee the daily operations of Mission Fed accounting and financial functions.

“Hasbrooke … has supported various teams during his tenure, including serving as an accountant, to becoming the 1st vice president controller, before officially being named as CFO in 2024,” according to a news release.

* * *

Orange County-based The Estate Lawyers, a law firm specializing in trust and estate litigation, has opened an office in San Diego, according to a news release.

The release said, “The strategic expansion underscores the firm’s commitment to providing exceptional legal services to clients throughout the region and further solidifies its position as one of Southern California’s fastest-growing trust and estate litigation firms.”

* * *

Pittsburgh, PA-based Michael Baker International, a provider of engineering, planning, and consulting services, says it has acquired Gavan-Graham Electrical Products, a premier original equipment manufacturer in the power distribution market.

The deal includes San Diego-based Akela Engineering and Consulting, a mechanical, electrical, and plumbing firm, which is a unit of Gavan-Graham is included in the acquisition solutions.

* * *

San Diego-based SaaS practice management and payment technology provider CARET said it has sold its enterprise document automation and assembly business, HotDocs, to another company in the segment, Mitratech.

“Mitratech, with a similar global customer footprint of major law firms and corporations, will be an ideal home for HotDocs to achieve its next phase of growth,” according to a media release.

“We are proud to have established HotDocs as the category leader of simplifying complex document creation for large enterprises,” said CEO Keri Gohman. “Mitratech, with a similar global customer footprint of major law firms and corporations, will be an ideal home for HotDocs to achieve its next phase of growth.”

CARET will retain the exclusive legal practice management integration with HotDocs through its comprehensive cloud-based CARET Legal platform.

* * *

San Diego renewable energy semiconductor manufacturer Infinity Power has unveiled a small, but long-lasting nuclear battery.

The radioisotope-powered device has achieved an efficiency of more than 60%, a significant leap from existing storage methods.

According to a news release, CEO Jae W. Kwon said he believes this technology holds potential for commercial applications due to its scalability, longer lifespan and diverse radioisotope compatibility.

“It’s amazing that by simply adjusting a few crucial design parameters, this tiny coin-cell-style device can provide tens of milliwatts of power for over a hundred years.

He said the battery might be used in many specialized markets, such as implantable medical devices, deep-sea power systems, space power systems, remote area power systems and microgrid power systems.

The metal-encased coin-cell packaging is developed to guarantee sufficient shielding and no leakage.

* * *

San Diego’s favorite fast-food purveyor Jack in the Box said it has signed a development agreement to open 15 new locations in Georgia, marking the company’s entry into the Peach State.

According to a news release, the restaurants will be located in Macon, Augusta, and Savannah, contributing to the brand’s growth in the Southeastern U.S.

This expansion follows 30 recent commitments in Florida, reflecting Jack in the Box‘s ongoing strategic growth in the Southeast.

Jack is one of the nation’s largest hamburger chains with 2,200 restaurants across 22 states. Its Del Taco Mexican-American food chain has 600 restaurants in 16 states.

Tom York is a Carlsbad-based independent journalist who specializes in writing about business and the economy. If you have news tips you’d like to share, send them to tom.york@gmail.com.