The Pearl La Jolla: 6-Unit Mixed-Use Development at Girard & Pearl 2026

For Pacific Beach, La Jolla, Mission Beach, and Bird Rock builders evaluating infill opportunities in coastal commercial corridors, The Pearl demonstrates how to maximize site density while meeting affordable housing requirements, engineering basement parking in coastal zones, and securing planning approval for mixed-use projects under the 30-foot coastal height limit.

Project Overview: From Dry Cleaners to Mixed-Use Development

The Pearl will occupy 941 and 945 Pearl Street, stretching from Girard Avenue west to Drury Lane. The property previously housed Ogden's One Hour Cleaners, a longtime La Jolla business that accepted final cleaning orders in late May 2024 and closed permanently mid to late June 2024.

The development represents a 476% increase in building square footage—from 2,980 SF to 17,172 SF—demonstrating the density gains achievable through San Diego's density bonus program when including deed-restricted affordable housing.

Building Specifications

Specification	Details
Total Square Footage	17,172 SF
Stories	3 stories
Residential Units	6 total (5 market-rate, 1 affordable)
Affordable Unit	1 deed-restricted unit
Ground-Level Commercial	Restaurant space + residential lobby
Parking	10 spaces (basement level)
Site Improvements	Landscaping and associated site work
Previous Building	2,980 SF single-story commercial

Density Bonus Strategy: 1 Affordable Unit Unlocks 3 Waivers

The Pearl makes strategic use of San Diego's density bonus program by including one deed-restricted affordable dwelling unit to meet residential density goals. In exchange for providing affordable housing, the developer secured one incentive and three waivers that significantly alter the project's physical form:

Waiver 1: Street Corner Lot Setback Deviation

The project receives a deviation from required street corner lot setbacks on all three floors. For a prominent corner at Pearl and Girard, this waiver maximizes buildable area on a constrained urban lot.

Waiver 2: Plumb Line Height Measurement

A waiver of plumb line measurement for maximum height allows the developer to avoid sinking retail space below grade. This waiver is critical for maintaining ground-level restaurant viability—pedestrian-oriented retail requires street-level visibility, not basement access.

Waiver 3: Street Facade Envelope Requirements

The waiver of street facade envelope requirements provides design flexibility for the building's appearance along both Pearl Street and Girard Avenue frontages.

Waiver 4: Floor Area Ratio (FAR) Increase

Most significantly, The Pearl receives a waiver of the maximum 1.7 floor-to-area ratio, pushing the FAR to 2.4. This 41% FAR increase translates directly to additional residential square footage—the difference between a financially marginal project and one that pencils for construction.

Affordable Housing Economics: Deed Restriction Requirements

For San Diego projects using density bonus provisions, affordable housing units must meet specific income restrictions and long-term deed requirements:

Income Targeting: Units must serve very low income (50% AMI), low income (60% AMI), or moderate income (120% AMI) households depending on the bonus tier selected
Deed Restriction Duration: Rental and for-sale affordable dwelling units shall remain available for 55 years or longer
First Lien Position: The density bonus dwelling units shall have recorded against them a Declaration of Covenants, Conditions and Restrictions in favor of the San Diego Housing Commission that shall enjoy first lien position and shall be secured by a deed of trust

For a 6-unit project like The Pearl, providing 1 affordable unit (16.7% of total units) likely qualifies the developer for density bonus concessions under the "at least 10% of units" threshold serving very low or low-income households. Learn more about ADU development regulations in San Diego County.

Planning Committee Review: PDO and DPR Process

The Pearl navigated La Jolla's two-tiered planning review system:

La Jolla Planned District Ordinance (PDO) Committee

The PDO reviews development applications within portions of La Jolla regulated by the La Jolla Planned District Ordinance. The PDO meets on the 2nd Monday each month and its review is limited to whether the application conforms to the PDO.

Development Permit Review (DPR) Committee

At the August 11, 2026 Development Permit Review committee meeting, PDO members expressed concern about the plumb line waiver, asking the developer to return with comparison images showing how the building would look in context with adjacent buildings. This contextual review is standard for prominent corner locations in La Jolla Village.

The planning approval process raised questions about the project's height, facade design, and impact on the busy stretch of Pearl Street—concerns typical for three-story developments in the coastal zone.

Coastal Zone Height Restrictions: Navigating the 30-Foot Limit

The Pearl faces the same regulatory constraint affecting all coastal builders: the 1972 coastal height limit imposed by Proposition D, which limits buildings to 30 feet in La Jolla and all coastal areas west of Interstate 5.

Development may reach:

27 feet for flat roofs
30 feet for sloped roofs
Appurtenances such as chimneys not exceeding the 30-foot maximum allowed by the Coastal Height Limit zone

Some view the 1972 coastal height limit as "the most significant barrier" to housing density, with critics claiming Proposition D "now acts as a citywide constraint on sensible housing" affecting affordable projects both within and beyond the coastal zone. For The Pearl, achieving three stories within 30 feet requires careful floor-to-floor height planning and likely incorporates the plumb line waiver to maximize interior ceiling heights.

Coastal communities including Pacific Beach, La Jolla, Mission Beach, and Ocean Beach face particular uncertainty as density bonus projects challenge the 30-foot coastal height limit. The Pearl's approval—if granted—would demonstrate that three-story mixed-use remains viable under current coastal regulations.

Basement Parking Engineering: 10 Spaces in Coastal Zone

The Pearl's 10-space basement parking presents significant engineering challenges for coastal construction:

Waterproofing and Groundwater

La Jolla's proximity to the coast means high water tables and potential saltwater intrusion. Basement construction requires:

Positive-side or negative-side waterproofing systems
Drainage systems to manage groundwater pressure
Corrosion-resistant reinforcement in concrete exposed to marine environments

Excavation and Shoring

Urban infill sites like Pearl and Girard require careful shoring to protect adjacent buildings during excavation. The property's location between Girard Avenue and Drury Lane means construction activity affects neighboring structures on both sides.

Cost Implications

Basement parking in San Diego coastal zones typically adds $40,000-$60,000 per space compared to surface parking, based on 2026 construction costs of $290-$860 per square foot for San Diego projects. For 10 spaces, this represents $400,000-$600,000 in additional construction costs—a significant expense that's offset by the density bonus FAR increase allowing more residential square footage above.

Construction Costs and Project Economics

Based on 2026 San Diego construction cost benchmarks, The Pearl's estimated construction budget breaks down as follows:

Cost Category	Calculation	Estimated Cost
Base Construction	17,172 SF × $400/SF (mid-range)	$6,868,800
Basement Parking	10 spaces × $50,000/space	$500,000
Site Work & Landscaping	5% of base construction	$343,440
Soft Costs	20% (permits, design, fees)	$1,542,448
Total Project Cost		$9,254,688
Cost per Residential Unit	$9.25M ÷ 6 units	$1,542,448
Cost per Square Foot	Total cost ÷ 17,172 SF	$539/SF

Note: Coastal and custom work in San Diego often exceeds $450 per square foot, with new residential construction typically running $250-$400 per square foot for standard finishes.

For the developer, project viability depends on La Jolla's premium residential market. The development's location on Girard Avenue—La Jolla's primary retail corridor—commands strong pricing:

La Jolla median home price: $2.22M-$2.4M (2026)
Potential sale price per unit (5 market-rate units): $1.8M-$2.2M depending on unit size and finishes
Gross potential revenue (5 units × $2M average): $10M
Affordable unit (deed-restricted, lower revenue): $450K-$500K estimated

The economics work because the density bonus FAR increase from 1.7 to 2.4 adds approximately 3,500 SF of residential space that wouldn't be buildable under base zoning—space that generates $7M-$8.75M in additional revenue at $2,000-$2,500 per SF La Jolla pricing.

Ground-Level Restaurant: Mixed-Use Phasing Considerations

The Pearl's ground-level restaurant space introduces construction coordination challenges:

Commercial Tenant Requirements

Restaurant spaces require:

Grease traps and commercial kitchen infrastructure (separate from residential systems)
HVAC systems sized for commercial cooking (larger capacity than residential)
Fire suppression systems meeting commercial kitchen standards
Separate utility meters for commercial vs. residential tenants

Construction Sequencing

Mixed-use projects typically follow this phasing:

Demolition and site preparation
Basement excavation and parking structure
Ground-floor commercial shell construction
Residential floors above
Commercial tenant improvements (may occur after residential occupancy)

Separating residential and commercial construction allows residential units to achieve occupancy and generate revenue while restaurant tenant improvements continue. This sequencing reduces carrying costs during lease-up.

Retail Lease Market Context

The average cost per square foot of renting retail space in La Jolla ranges from $36.85 to $54 per square foot depending on neighborhood demographic, lease length, and property condition. For a ground-floor restaurant on Girard Avenue, expect the higher end of this range.

La Jolla's commercial real estate market stands out due to its premium coastal location, strong demand from luxury retailers and tenants, and tight supply, resulting in relatively stable vacancy rates and high price points compared to most other San Diego neighborhoods.

Comparable La Jolla Mixed-Use Projects

The Pearl joins several recent La Jolla mixed-use developments combining retail and residential:

Su Casa Residences

A project subdividing two parcels into nine lots to construct eight single dwelling units with seven accessory dwelling units and one mixed-use residential building with one dwelling unit and 801 square feet of retail space. Smaller scale than The Pearl but similar mixed-use approach.

Herschel Avenue Mixed-Use Development (2022)

A two above-ground level, 24,435-square-foot mixed-use development consisting of 12 residential apartments with a roof deck above a ground-floor lobby area with retail. Nearly 50% larger than The Pearl with double the residential units.

Girard Avenue Lofts (2020)

Located at the entrance to The Village, this development includes three connecting two-story buildings with 1,960 square feet of ground-floor retail and 17 loft-type apartments. Demonstrates successful mixed-use at Village entry point.

Sea + Stone

An adaptive reuse project that transforms a 1980s office building in La Jolla Village into a 20-unit coastal residential community. Shows alternative path to density through conversion rather than ground-up construction.

These comparables demonstrate La Jolla's ongoing transformation of commercial corridors through mixed-use infill development—a trend The Pearl continues.

Permit Timeline Expectations

San Diego building permits take 4-6 weeks in 2026 for standard residential projects, though commercial building permit review typically takes 4-12 weeks depending on project scope, plan review backlog, and whether corrections are required.

For The Pearl, expect:

Planning approval: 3-6 months for PDO/DPR committee review and City Planning Commission (in progress as of August 2026)
Building permit review: 8-12 weeks for mixed-use projects with basement parking
Coastal Development Permit: Additional 60-90 days if required by California Coastal Commission
Total pre-construction timeline: 6-12 months from planning submittal to permit issuance

Complete Communities offers 30-day fast track permitting for certain project types, but mixed-use developments with density bonus waivers typically follow standard review timelines to allow thorough evaluation of requested deviations.

Implications for Pacific Beach and Coastal Builders

The Pearl offers five key lessons for builders evaluating similar opportunities in Pacific Beach, Mission Beach, Bird Rock, and La Jolla:

1. Small-Scale Density Bonus Viability

Density bonus isn't just for 100+ unit mega-projects. A 6-unit project can successfully leverage one affordable unit to unlock substantial FAR increases and critical setback/height waivers. The economics work when land values justify the affordable housing trade-off.

2. Commercial Corridor Conversion Pathway

Aging single-story commercial buildings on prominent corners represent prime infill opportunities. The Pearl's 476% square footage increase demonstrates the value creation potential in commercial-to-residential conversions.

3. Basement Parking as Density Enabler

Despite $400,000-$600,000 in additional costs, basement parking preserves ground-floor commercial viability and allows three-story construction within coastal height limits. The FAR bonus justifies the parking investment.

4. Planning Committee Navigation

Expect scrutiny on height, facade, and contextual fit—especially on prominent corners. Prepare contextual renderings showing the project alongside adjacent buildings, as requested by the PDO committee for The Pearl.

5. Three Stories Remains Viable Under 30-Foot Limit

Despite concerns that Proposition D constrains density, The Pearl demonstrates three-story mixed-use can navigate the 30-foot coastal height limit with careful design and density bonus waivers.

Regional Development Context: 2026 Mixed-Use Activity

The Pearl emerges as coastal San Diego experiences broader development trends:

3,670 apartments expected to open across San Diego County in 2026, with approximately 79% of new units located in the city of San Diego
Mission Valley, Kearny Mesa, and downtown waterfront identified as primed for mixed-use growth
Residential construction in Pacific Beach, La Jolla, Mission Beach, Bird Rock remains healthy and largely unaffected by commercial office slowdown
Multifamily housing up 11.5% projected for 2026
ADU development and custom residential projects continuing at strong pace

Within this regional context, The Pearl represents La Jolla's specific approach to density: small-scale mixed-use infill rather than large apartment complexes, preservation of ground-floor retail character, and careful design review to maintain Village aesthetics.

Market Demand: La Jolla Commercial Corridor Evolution

Girard Avenue and Pearl Street sit at the heart of La Jolla's commercial transformation. The La Jolla Community Foundation's Streetscape project plans to extend public plazas into the street along Girard Avenue and create mini-parks at each intersection, with Streetscape planners entering a public bidding phase in early 2026.

These public realm improvements increase the attractiveness of mixed-use residential at Pearl and Girard. Future residents will benefit from:

Walkability to 100+ Girard Avenue retailers and restaurants
Public plaza access within 50 feet of The Pearl's entrance
La Jolla Shores beaches 1.2 miles west
Downtown La Jolla transit connections

The combination of public investment in streetscape and private investment in mixed-use density creates a reinforcing cycle: better pedestrian environments support retail, which attracts residential demand, which justifies additional mixed-use development.

FAQ: The Pearl La Jolla Mixed-Use Development

What is The Pearl La Jolla?

The Pearl is a proposed three-story, 17,172-square-foot mixed-use development at the corner of Pearl Street and Girard Avenue in La Jolla. The project would replace a former dry cleaning business with six residential units (including one affordable unit), ground-level restaurant space, and basement parking for 10 vehicles.

Where exactly is The Pearl located?

The Pearl occupies 941 and 945 Pearl Street in La Jolla, stretching from Girard Avenue west to Drury Lane. The property is in the 92037 zip code at one of La Jolla Village's most prominent corners.

What happened to Ogden's One Hour Cleaners?

Ogden's One Hour Cleaners, a longtime La Jolla business that previously occupied the site, accepted final cleaning orders in late May 2024 and closed permanently mid to late June 2024. The Pearl development would demolish the 2,980-square-foot building that housed the dry cleaners.

How does The Pearl use San Diego's density bonus program?

The Pearl includes one deed-restricted affordable housing unit (out of six total units), which qualifies the project for density bonus incentives and waivers. These include a deviation from street corner setbacks, waiver of plumb line height measurement, waiver of street facade envelope requirements, and most significantly, an increase in floor area ratio from 1.7 to 2.4—a 41% FAR increase.

What are the affordable housing requirements for the deed-restricted unit?

The affordable unit must serve very low income (50% AMI), low income (60% AMI), or moderate income (120% AMI) households depending on the bonus tier. Rental and for-sale affordable dwelling units must remain available for 55 years or longer, with a Declaration of Covenants recorded in favor of the San Diego Housing Commission.

Can you build three stories under the 30-foot coastal height limit?

Yes. The 1972 coastal height limit imposed by Proposition D limits buildings to 30 feet in areas west of Interstate 5. Development may reach 27 feet for flat roofs or 30 feet for sloped roofs. The Pearl demonstrates that three-story mixed-use construction remains viable within this limit through careful floor-to-floor height planning and density bonus waivers.

What is the estimated construction cost for The Pearl?

Based on 2026 San Diego construction costs of $290-$860 per square foot (with coastal projects often exceeding $450/SF), estimated total project cost is approximately $9.25 million, including base construction ($6.87M), basement parking ($500K), site work ($343K), and soft costs ($1.54M). This translates to roughly $1.54 million per residential unit.

What are the planning approval requirements for mixed-use projects in La Jolla?

Projects in La Jolla regulated by the La Jolla Planned District Ordinance must receive review from the PDO Committee (meets 2nd Monday each month) and the Development Permit Review (DPR) Committee. The Pearl's August 11, 2026 DPR meeting included requests for contextual renderings showing how the building would look alongside adjacent structures.

Why is basement parking necessary for The Pearl?

Basement parking serves three purposes: (1) preserves ground-floor area for commercial restaurant use rather than parking, (2) allows the project to meet the 10-space parking requirement on a constrained urban lot, and (3) enables three-story construction within coastal height limits by avoiding above-ground parking structures.

What other mixed-use projects are similar to The Pearl in La Jolla?

Comparable recent projects include Su Casa Residences (8 dwellings + 7 ADUs + mixed-use building with retail), Herschel Avenue Mixed-Use Development (12 apartments over ground-floor retail, 24,435 SF, completed 2022), and Girard Avenue Lofts (17 loft apartments with 1,960 SF ground-floor retail, completed 2020).

When will The Pearl be built?

As of August 2026, The Pearl is advancing through the La Jolla planning committee review process. Typical timelines suggest 6-12 months for planning approval, 8-12 weeks for building permit review, and potentially 60-90 days for Coastal Development Permit if required. Construction timelines for three-story mixed-use projects typically run 14-18 months after permit issuance.

What lessons does The Pearl offer for Pacific Beach and Mission Beach builders?

The Pearl demonstrates five key lessons: (1) small-scale density bonus projects (6 units) can successfully leverage affordable housing for FAR increases, (2) commercial-to-residential conversions offer 400%+ square footage increases, (3) basement parking justifies its $400K-$600K cost by enabling density, (4) planning committees scrutinize contextual fit on prominent corners, and (5) three-story construction remains viable under the 30-foot coastal height limit.

For Pacific Beach, La Jolla, Mission Beach, and Bird Rock builders evaluating mixed-use infill opportunities, The Pearl demonstrates the commercial-to-residential conversion pathway under San Diego's density bonus program. The project's navigation of coastal height limits, basement parking engineering, and planning approval process offers a replicable model for coastal corridor development.

Contact Pacific Beach Builder for Mixed-Use Construction Expertise

Pacific Beach Builder specializes in mixed-use construction projects in coastal zones, including density bonus navigation, basement parking engineering, commercial-to-residential conversions, and La Jolla planning committee coordination. We understand the unique challenges of building in La Jolla's coastal environment and navigate regulatory pathways efficiently.

Our team has extensive experience with projects similar to The Pearl, from density bonus applications to three-story residential development within coastal zone height limits. We coordinate with the La Jolla PDO, Development Permit Review Committee, California Coastal Commission, and San Diego Planning Department to ensure smooth approval processes.

Contact Pacific Beach Builder for a free project consultation:

Phone: +1-858-290-1842
Website: pacificbeachbuilder.com
Email: info@pacificbeachbuilder.com

Let's discuss how we can help you navigate the coastal development process for your La Jolla or Pacific Beach mixed-use project.