City Prepares to Amend 107 Ash Street Affordable Housing Lease Before Closing
San Diego is taking the 21-story Civic Core tower at 107 Ash Street, formerly 101 Ash, back to City Council on Sept. 15. The vote is on a first amendment to the affordable housing ground lease, ahead of a targeted close by the end of September if Council signs off. 101 Ash Venture LP, a partnership of MRK Partners and Create Dev, is converting the office tower to apartments. This is a Civic Core conversion, not The Torrey lease-up or Kindred in Cortez Hill already on this news board.
What the first amendment covers
The conversion is 252 apartments: 249 deed-restricted for households at 30% to 80% of AMI, plus 3 manager units. The amendment would extend the ground lease from 60 years to 65 years and change the City's $45.6 million note from 4% simple interest to 5% compound interest. Those are the city's lease terms, not a retail mortgage quote. Development cost is $209.1 million, with a $73 million HUD-insured loan and $70.8 million in tax-credit equity. The project also includes 25,000 square feet of retail and a 4,000-square-foot childcare space.
Why it matters
- Civic Core would add a large deed-restricted rental conversion in the downtown core, not for-sale condo inventory.
- The Sept. 15 action is on lease length and the city's note, not a new building entitlement.
- Until Council acts and the deal closes, treat 107 Ash as a pipeline conversion, not delivered supply.
Source: Union-Tribune on the 101 Ash / 107 Ash lease amendment.
Related on this site: The Torrey lease-up; Kindred apartments in Cortez Hill; downtown commercial-to-housing conversions.
More Downtown San Diego mortgage help and the Downtown San Diego news board.
For a buyer downtown, a 21-story Civic Core conversion is a condo-project and payment-planning question. See condo loans in Downtown San Diego and the mortgage calculator.
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