It is not always an easy process to transition commercial real estate from one type of operation to another.
Jake Russell, whose family has long owned a wide range of properties in Pacific Beach, found this out over the last few years as they tried to figure out what to do with a piece of property that went from icon to eyesore after shutting down after 40 years of business.
Once considered one of the best auto shops in San Diego with many high-end clients, Duke’s Garage has been empty for nearly two years since his family members were unable to maintain a similar level of revenue and the business was forced to close.
“My grandfather originally bought the property in the ’50s for around $1,500,” Russell said. “The building was constructed in 1970, and at the time Duke’s Garage was in another location. They moved to the current building and remained there until a few years ago.”
Faced with a vacant building of nearly two years, the only thing certain to Russell and his family was not to sell the property.
“When you are property owner and especially in areas zoned for commercial ventures, the last option is to sell,” he said, “because you can keep generating revenue from the property.”
The next question was what to do with the building, raze it or do a redesign incorporating some of the existing structure.
Russell, a contractor who will be building the new structure, called upon one of his tenants at one of his other commercial properties, architect Mike Matalon of Matalon Architecture & Planning, 910 Grand Ave., to help with the design aspect.
In formal planning terms, an “adaptive reuse” approach was chosen. This meant, according to wide range of city building codes, a portion of the original structure has to remain as part of the rebuilding process.
“By doing an adaptive reuse we have kept the footprint of the building the same,” Russell said. “I have three of the existing walls still standing and all original on the inside. We are trying to maintain some character, and I do not want everything to be new.”
While this approach may appear community friendly on the surface, it was anything but that when it came to approval by the City of San Diego, according to Russell.
After over a year of legal wrangling on everything from parking spaces to how far the new facility could be located from the curb and many other issues, the project was finally approved.
“The Pacific Beach Planning Commission liked the project very much, and once they approved it, the City of San Diego followed suit,” he said. “Without approval from the planning commission I doubt we would have been able to move forward.”
The final design concept incorporates a mixed use of commercial and residential space, which has become increasingly popular both for new and older structures.
The bottom floor will be for business while the upper floor will consist of two apartments.
“We do not have any tenants yet for either the commercial or residential space,” Russell said. “However, if you could pick the ideal tenant it would be someone who owns the business on the first floor and lives on the second floor. They would not need to commute to work but instead just walk downstairs.”
The building is scheduled to be completed in late 2008.
“I am assuming at this point in time the commercial level will be ready to occupy before the residential,” he said.
While construction is now in the early stages, one issue does seem certain: Thanks to the efforts of Russell and Matalon, passing by the old Duke’s building will remain a trip down memory lane.