The Pearl La Jolla: 6-Unit Mixed-Use Development Presented at Pearl Street & Girard Avenue (August 11, 2026 Development Permit Review)

On August 11, 2026, La Jolla's Development Permit Review committee reviewed The Pearl—a proposed three-story mixed-use development at the prominent corner of Pearl Street and Girard Avenue that would replace a single-story commercial building with 6 residential units (including 1 affordable unit), ground-level retail, and 10 parking spaces. The property, which stretches from Girard Avenue west to Drury Lane and previously housed longtime business Ogden's One Hour Cleaners (closed in 2024), represents a growing trend in La Jolla: replacing aging commercial structures with mixed-use developments that combine residential intensification with ground-floor commercial activity.

For builders and contractors in Pacific Beach, La Jolla, Mission Beach, Bird Rock, and Tourmaline Surfing Park areas, The Pearl offers a detailed case study in navigating the complex regulatory landscape of coastal mixed-use construction—from San Diego's inclusionary housing requirements to Coastal Development Permits, Development Permit Review Committee approval, and Type V-A construction standards for three-story residential-commercial buildings. This article provides a comprehensive analysis of The Pearl project, including detailed specifications, permitting requirements, construction costs, and what this development signals for future opportunities in La Jolla's commercial corridors.

Project Overview: The Pearl Mixed-Use Development Details

The Pearl is a proposed 17,172-square-foot, three-story mixed-use structure that would demolish the existing single-story 2,980-square-foot commercial building at 941 and 945 Pearl Street. The project exemplifies the type of residential intensification that La Jolla's Community Plan actively promotes in commercial areas to address housing demand while maintaining ground-floor commercial activity along key corridors.

Location Significance: Pearl Street & Girard Avenue

The Pearl Street and Girard Avenue intersection sits at one of La Jolla's busiest commercial corners in the heart of the Village district. Girard Avenue serves as La Jolla's primary retail corridor, with commercial property pricing reaching an average of $611 per square foot over the past 12 months—nearly three times San Diego's urban core average. Asking rents now average $4.37 per square foot in La Jolla, almost 70% above the $2.60 county average, according to Q1 2026 market data from Cornovus Capital.

This premium pricing reflects the corridor's established foot traffic, proximity to coastal amenities, and the Village's reputation as one of San Diego's most affluent neighborhoods. The site's central location serves residents and visitors from throughout the coastal corridor, including Bird Rock to the south and Tourmaline Surfing Park to the north in Pacific Beach. For developers, this location offers the dual benefit of high-value retail frontage on Girard Avenue and residential marketability in a supply-constrained coastal community.

Building Specifications

The Pearl's design maximizes the 17,172-square-foot site with a compact three-story configuration:

The project's basement parking approach reflects a common solution in La Jolla's dense commercial core, where surface parking is economically inefficient and street parking is limited. The 10-space allocation translates to 1.67 spaces per residential unit—above the minimum requirements for mixed-use projects in transit-priority areas but below traditional suburban ratios.

Affordable Housing Component

The Pearl includes one deed-restricted affordable dwelling unit, meeting San Diego's Inclusionary Affordable Housing Ordinance requirements. For a 6-unit project, the inclusionary requirement mandates a minimum of 10% of rental units be affordable to households earning up to 60% of Area Median Income (AMI), or approximately 16.7% for this project (1 of 6 units).

According to San Diego's inclusionary housing regulations updated in 2026, rental housing units must remain affordable for at least 55 years pursuant to the ordinance. For context, San Diego's 2026 AMI is approximately $109,700 for a family of four, meaning a 60% AMI threshold targets households earning around $65,820 annually—a critical income bracket for service workers, educators, and other professionals who support La Jolla's economy but face severe affordability challenges in the coastal market.

Ground-Level Retail Strategy

The applicant's stated intent to lease the ground-floor commercial space to a restaurant aligns with La Jolla Community Plan objectives that require ground-floor activation along commercial streets. Specifically, the plan mandates that a minimum of 60% of ground-floor street frontage contain commercial uses, with active uses accessible to the general public.

For builders, this retail-residential separation introduces construction complexity around fire separation requirements, separate utility systems, and ADA compliance for both commercial and residential components—topics we'll explore in the construction requirements section below.

La Jolla Development Permit Review Process (August 11, 2026)

The Pearl's presentation to the Development Permit Review (DPR) Committee on August 11, 2026, marks the first major public review stage in La Jolla's multi-layered approval process for new construction. Understanding this process is critical for builders and developers working in La Jolla's jurisdiction.

What is Development Permit Review (DPR)?

The Development Permit Review Committee is a subcommittee of the La Jolla Community Planning Association (LJCPA) that reviews permit applications—including Coastal Development Permits (CDP), Site Development Permits (SDP), and Tentative Maps (TM)—for most areas of La Jolla outside the La Jolla Shores Planned District. The DPR meets on the 2nd and 3rd Tuesday of each month.

The committee's role is advisory: it reviews projects for consistency with the La Jolla Community Plan and Planned District Ordinance, then makes recommendations to the City of San Diego's Development Services Department and ultimately the Planning Commission or Hearing Officer for final approval.

Timeline from DPR to Approval

Based on recent La Jolla projects and San Diego's updated permit processing timelines as of August 2026, builders can expect the following general sequence:

Total timeline from DPR presentation to construction start: 9-18 months, assuming no significant design changes or appeals. Projects in La Jolla's Coastal Zone typically experience longer timelines than inland San Diego neighborhoods due to additional Coastal Commission oversight.

Community Input Process

Community planning discussions for The Pearl are ongoing, with early reports indicating concerns about building height and facade design—common feedback themes in La Jolla, where residents prioritize village character and view preservation. The La Jolla Community Planning Association's Land Use Regulations emphasize maintaining the Planned District Ordinance's purpose: "to maintain a balanced land use pattern within commercially designated areas, to protect scenic vistas of the ocean, shoreline and hillside areas, and to beautify the overall streetscape of commercial streets."

For builders, this means design flexibility during the DPR phase is essential. Projects that proactively address height transitions, architectural materials consistent with Mediterranean/Spanish Colonial Revival styles prevalent in La Jolla, and landscaping along street frontages typically receive more favorable community recommendations.

Coastal Development Permit Requirements

Because The Pearl is located in the Coastal Zone, it requires a Coastal Development Permit (CDP) from the California Coastal Commission. Properties in the Coastal Zone require a CDP for new construction, additions over 10% of existing floor area, and some changes to primary structures.

Development within the coastal overlay district requires a Process Two Coastal Development Permit in accordance with Chapter 12, Article 6, Division 7 of the San Diego Land Development Code. The CDP review adds a layer of environmental and public access analysis beyond standard building permits, focusing on coastal views, public access to the shoreline, and consistency with the California Coastal Act.

Next Steps for The Pearl

As of August 17, 2026 (six days post-DPR presentation), The Pearl is in the community input and design refinement phase. The applicant will likely address DPR feedback regarding height and facade, then return for a formal DPR vote. Upon receiving a favorable DPR recommendation, the project advances to City of San Diego staff review and eventually a public hearing before the Planning Commission or designated Hearing Officer.

Affordable Housing Requirements in La Jolla Mixed-Use Projects

The Pearl's inclusion of one deed-restricted affordable unit among six total dwellings (16.7% of units) slightly exceeds San Diego's minimum inclusionary housing requirement and reflects the economic and regulatory realities of building mixed-use housing in coastal San Diego in 2026.

San Diego's Inclusionary Housing Ordinance

San Diego's inclusionary housing regulations, as updated through 2026, require:

• Rental developments: Minimum of 10% of total dwelling units rented to very low or low-income households (up to 60% of Area Median Income)
• For-sale developments: Minimum of 10% of units affordable to median-income households OR 15% of units affordable to moderate-income households
• Duration: Rental housing units must remain affordable for at least 55 years

For The Pearl's 6-unit rental project, the 10% threshold would require 0.6 units—which rounds up to 1 unit under standard practice. By dedicating 1 of 6 units (16.7%), the project exceeds the minimum requirement, potentially enhancing its approval prospects or qualifying for density bonuses under the City's Complete Communities program.

Income Qualification Standards

The affordability threshold of "60% of Area Median Income" translates to specific income limits published annually by the San Diego Housing Commission. For 2026, approximate income limits for a 60% AMI household are:

These income levels target essential workers—teachers, nurses, service industry workers, retail employees—who support La Jolla's economy but are increasingly priced out of the community. As the La Jolla Community Plan notes: "Given that La Jolla has a significant number of retail job opportunities, an increase in residential density for affordable housing is desirable in order to provide an opportunity for these employees to live in the same community in which they work."

Maximum Rent Calculations

Affordable units are rent-restricted based on income levels. For a 60% AMI unit, maximum monthly rent (including utilities) is generally capped at 30% of the qualifying household income. For example:

• 4-person household at 60% AMI ($65,820/year): Maximum rent approximately $1,646/month
• Market-rate comparable units in La Jolla Village: $2,800-$4,500/month

This rent gap represents the economic cost of the affordability requirement, which developers typically offset through higher rents on market-rate units, reduced amenities, or, in some cases, density bonuses that allow additional units.

Deed Restriction Duration and Compliance

The 55-year affordability restriction is recorded as a deed restriction on the property, running with the land regardless of ownership changes. The San Diego Housing Commission monitors compliance through annual reporting requirements, tenant income certifications at move-in, and periodic audits. Violations can result in penalties, loss of occupancy certificates, or mandatory repayment of any fee waivers or incentives received.

For builders and property owners, this long-term commitment requires careful financial modeling. The affordable unit will generate below-market income for more than five decades, affecting property valuations, refinancing options, and exit strategies.

Project Feasibility Impact

Inclusionary housing requirements introduce a financial trade-off: reduced revenue from affordable units versus community benefits, potential density bonuses, and streamlined permitting under programs like Complete Communities. For The Pearl, with 5 market-rate units and 1 affordable unit, the pro forma might look like:

• Market-rate units (5): $3,500/month average × 5 = $17,500/month = $210,000/year
• Affordable unit (1): $1,650/month × 1 = $1,650/month = $19,800/year
• Total annual rental income: $229,800
• Income if all 6 units were market-rate: $252,000
• Annual income reduction: $22,200 (8.8% reduction)

Over 55 years, this represents approximately $1.22 million in forgone rental income (not accounting for inflation or rent increases). Developers offset this through land acquisition strategies, construction cost management, and, in some cases, incentives like reduced parking requirements or expedited permitting under the Complete Communities program.

Replacing Single-Story Commercial: La Jolla Intensification Trend

The Pearl's proposal to replace a single-story 2,980-square-foot commercial building (the former Ogden's One Hour Cleaners) with a three-story, 17,172-square-foot mixed-use structure exemplifies a broader trend in La Jolla: aging commercial buildings in prime locations are increasingly viewed as underutilized sites ripe for mixed-use redevelopment.

Trend: Aging Commercial to Mixed-Use Conversion

Several factors drive this trend:

1. Land Value Economics: La Jolla commercial sales averaged $611/sq ft over the past 12 months—nearly three times San Diego's urban core average. At these land values, single-story commercial buildings represent inefficient use of capital. A three-story structure triples the buildable area, allowing developers to capture residential rents (which often exceed commercial rents per square foot) while maintaining ground-floor commercial.
2. Community Plan Policy: The La Jolla Community Plan explicitly "promotes mixed-use development in all commercial areas of the community" and recommends "residential intensification of commercial areas through mixed-use projects to promote affordable housing and balanced communities." This policy framework creates a favorable regulatory environment for conversions.
3. Changing Retail Landscape: Traditional retail uses—dry cleaners, small offices, standalone shops—face competitive pressure from e-commerce and evolving consumer patterns. Mixed-use developments allow property owners to diversify revenue streams between residential and experiential retail (restaurants, cafes, fitness studios) that are more resilient to e-commerce disruption.
4. Housing Demand: La Jolla's coastal location, school quality, and amenities create sustained housing demand, while single-family zoning and community resistance to large-scale developments constrain supply. Mixed-use projects in commercial zones offer a politically viable path to add housing without rezoning residential neighborhoods.

Zoning for Residential in Commercial Areas

La Jolla's commercial zones—particularly the Village's CN-1-3 (Neighborhood Commercial) and CC-3-5 (Community Commercial) designations—permit mixed-use development as a matter of right, subject to development standards for height, setbacks, parking, and design review. The La Jolla Planned District Ordinance (PDO) provides additional design standards specific to the Village, including:

• Height limits: Generally 30 feet (approximately three stories) in Village commercial areas, with some variation by specific zone
• Setbacks: Ground-floor commercial must front directly on primary streets (zero setback); upper-floor residential may have modest step-backs
• Ground-floor use requirements: Minimum 60% of ground-floor street frontage must contain commercial uses

Case Studies: Similar Conversions in La Jolla

The Pearl follows a pattern established by other recent La Jolla mixed-use conversions:

1. 7777 Girard Avenue Retail-Residential Project (approved 2020): Community planners approved a mixed-use project on Girard Avenue combining ground-floor retail with upper-floor residential, setting a precedent for intensification along the corridor.
2. La Jolla Village Mixed-Use Buildings: Multiple projects along Girard Avenue and adjacent streets have converted aging one- or two-story commercial to three-story mixed-use, capitalizing on the corridor's pedestrian activity and proximity to coastal amenities.
3. Paseo La Jolla Townhomes (completed 2026): While not a commercial conversion, this recently completed residential project demonstrates continued demand for new housing in La Jolla's constrained market.

Financial Analysis for Builders

For contractors evaluating similar conversion opportunities in La Jolla, Pacific Beach, Mission Beach, Bird Rock, or the Tourmaline Surfing Park area, key financial considerations include:

• Land acquisition cost: $611/sq ft average suggests a 2,980 sq ft lot (The Pearl's approximate original footprint) might cost $1.8+ million
• Demolition: $10,000-$30,000 depending on environmental remediation needs (dry cleaners may have soil contamination issues requiring abatement)
• Construction cost: $400-$500/sq ft for coastal three-story mixed-use (see Construction Requirements section below) = $6.9-$8.6 million for 17,172 sq ft
• Soft costs: Design, engineering, permits, financing = 15-20% of hard costs = $1.0-$1.7 million
• Total project cost: $9.7-$12.1 million
• Revenue: 5 market-rate units at $3,500/month + 1 affordable at $1,650/month + retail at $4.37/sq ft = approximately $230,000/year residential + $100,000-$150,000/year retail = $330,000-$380,000/year gross income
• Cap rate at stabilization: 3.0-3.5% (typical for La Jolla residential income property)
• Stabilized value: $9.4-$12.7 million

These rough estimates suggest break-even to modest appreciation scenarios, with profitability heavily dependent on construction cost control, expedited permitting (to minimize financing costs during approval), and retail lease-up success.

Construction Requirements for 3-Story Mixed-Use in La Jolla

Building a three-story mixed-use structure like The Pearl in La Jolla's Coastal Zone requires navigating a complex matrix of building code, coastal construction standards, fire-life safety requirements, and local ordinances. This section provides builders with a technical roadmap.

Building Code: Type V-A Construction

Under the 2025 California Building Code (effective January 1, 2026), a three-story mixed-use building with residential above ground-floor commercial typically falls under Type V-A construction, which permits wood-frame construction with one-hour fire-resistance ratings on primary structural elements.

Type V-A Requirements:

• Height limit: 50 feet without sprinklers; 70 feet with NFPA 13 sprinkler system (The Pearl at three stories/approximately 35-40 feet falls well within limits)
• Fire resistance: 1-hour rated exterior walls, floor/ceiling assemblies, and structural frame
• Sprinkler requirement: NFPA 13 or 13R sprinkler system required for residential buildings over two stories
• Occupancy separation: Commercial (Group M or B) and residential (Group R-2) occupancies require 1-hour fire barrier separation

Fire Separation: Residential/Commercial Interface

One of the most critical technical challenges in mixed-use construction is the occupancy separation between ground-floor commercial and upper-floor residential. The California Building Code requires:

• 1-hour fire-resistance-rated floor/ceiling assembly between commercial and residential levels
• Separate exits: Commercial and residential occupancies require independent means of egress (The Pearl's separate residential lobby addresses this)
• Fire alarm system: Interconnected fire alarm throughout building, with commercial and residential zones
• Smoke control: Mechanical ventilation or natural ventilation to prevent smoke migration between occupancies

For builders, this separation adds cost—approximately $15-$25/sq ft of separation area for fire-rated assemblies, penetration firestopping, and coordination between commercial and residential mechanical/electrical systems.

Parking Code Compliance

The Pearl's 10 basement parking spaces for 6 residential units (1.67 spaces/unit) likely complies with reduced parking requirements available under San Diego's Complete Communities program for projects in "transit priority areas" (within 1/2 mile of a public transit stop). Standard parking requirements would be:

• Residential: 1.5-2.0 spaces per unit (depending on unit size) = 9-12 spaces for 6 units
• Commercial (restaurant): 1 space per 250-300 sq ft = 3-5 spaces for approximately 1,200 sq ft retail
• Total without reductions: 12-17 spaces

By meeting Complete Communities criteria (affordable housing component, mixed-use, transit proximity), The Pearl likely qualifies for:

• Residential parking reduction to 1.0-1.5 spaces/unit
• Commercial parking reduction or waiver (given ground-floor activation priority)
• Result: 10 spaces becomes compliant

Coastal Construction Standards

La Jolla's Coastal Zone location imposes additional requirements beyond standard building code:

1. Coastal Development Permit (CDP): Required for all new construction; adds 3-6 months to permitting timeline and approximately $10,000-$25,000 in additional consultant costs (coastal engineers, environmental reports)
2. Sea-level rise planning: While The Pearl is not immediately adjacent to the shoreline, projects in the Coastal Zone must demonstrate consistency with sea-level rise projections and adaptation strategies outlined in the California Coastal Commission's 2018 Sea Level Rise Policy Guidance
3. Public access and views: Coastal Development Permits evaluate whether projects impact public coastal access or scenic views; three-story buildings in the Village are generally acceptable given existing development patterns, but design must demonstrate view corridor preservation where applicable
4. California Coastal Act consistency: All aspects of design—from landscaping (native, drought-tolerant species preferred) to exterior materials (earth tones, non-reflective finishes)—must align with Coastal Act policies

Construction Cost Estimates

Based on 2026 San Diego construction cost data, three-story mixed-use buildings in coastal locations typically cost:

Contingency (10%) should be added for coastal projects given permitting uncertainties and potential design changes during community review.

Timeline Estimate

Expedited permitting under Complete Communities can reduce entitlement timeline to 9-12 months if the project qualifies and maintains design consistency throughout review.

Contractor Opportunities: What The Pearl Means for Builders

The Pearl represents both a specific project opportunity (once entitled and financed) and a broader signal about where La Jolla's built environment is heading—information that savvy contractors and builders serving Pacific Beach, La Jolla, Mission Beach, Bird Rock, and Tourmaline Surfing Park can leverage for business development and specialization.

Mixed-Use Expertise Requirements

Successfully bidding and executing mixed-use projects like The Pearl requires demonstrable expertise across multiple building types:

1. Multi-family residential construction: 5-20 unit wood-frame buildings, Type V-A construction, residential code compliance, unit finishes appropriate for coastal rental market
2. Commercial tenant improvement: Ground-floor retail/restaurant construction, ADA compliance, commercial kitchen systems (if restaurant), separate commercial meters and life safety systems
3. Occupancy separation: Fire-rated assemblies, penetration firestopping, coordination between commercial and residential systems
4. Structured parking: Basement excavation, shoring, waterproofing (critical in coastal water table conditions), vehicle circulation and ADA accessible parking

Builders looking to position for these opportunities should develop portfolios showcasing:

• Completed mixed-use projects (even small-scale 2-story residential-over-retail)
• Multi-family projects with 5+ units
• Commercial kitchen or restaurant construction
• Coastal construction experience in areas like Pacific Beach, La Jolla, Mission Beach, Bird Rock, and Tourmaline Surfing Park (corrosion protection, Coastal Development Permit process familiarity)

Affordable Housing Compliance

Projects with affordable housing components introduce additional compliance layers:

• Income certification coordination: Working with developer/owner to ensure affordable units are constructed to specifications that meet San Diego Housing Commission standards (which may differ from market-rate units in finish allowances)
• Separate metering: Some affordable housing programs require individual unit utility metering to ensure tenant costs remain within affordability calculations
• Inspection and reporting: Enhanced documentation during construction to verify affordable units meet program requirements
• Timeline sensitivity: Developers relying on Low-Income Housing Tax Credits (LIHTC) or other affordable housing financing face strict placed-in-service deadlines; construction delays can jeopardize millions in financing

Contractors who understand affordable housing financing timelines and compliance requirements become preferred partners for developers navigating these complex projects.

La Jolla Permitting Navigation

La Jolla's layered approval process—Development Permit Review Committee, La Jolla Community Planning Association, Coastal Development Permit, City of San Diego Planning Commission, California Coastal Commission (on appeal)—creates opportunities for builders who can:

1. Design-assist during entitlements: Provide constructability input and cost estimates during the design phase, before plans are locked in through community review. Builders who help architects design to budget while meeting community expectations become invaluable.
2. Permit expediting expertise: Familiarity with San Diego Development Services plan check processes, common correction requests, and strategies for Complete Communities fast-track can shave 2-4 months off timelines—worth significant financing cost savings.
3. Community relations: Builders with positive track records in La Jolla—minimal neighbor complaints, clean job sites, adherence to work-hour restrictions—help developers navigate community review with fewer objections.

Phasing: Demolition to Completion

A typical construction sequence for The Pearl would be:

Subcontractor Opportunities

Mixed-use projects create specialized trade opportunities:

• Firestopping & fireproofing: Commercial-residential occupancy separations require certified firestopping contractors
• Commercial kitchen equipment: If ground-floor retail is a restaurant (as applicant intends), specialized kitchen equipment installation, hood systems, and grease waste systems
• Elevator (if included): Three-story buildings may include elevators for ADA access, creating opportunities for elevator contractors
• Waterproofing: Basement waterproofing in coastal water table conditions requires specialized membrane systems and drainage design
• Acoustic insulation: Commercial-residential separation requires enhanced sound insulation beyond standard residential construction
• Fire sprinkler design-build: NFPA 13 or 13R systems for three-story residential with commercial component

Subcontractors with certifications in these specializations (e.g., firestopping FM 4991 approval, elevator mechanics licenses, commercial kitchen installers) position themselves for premium mixed-use work.

Market Signal: Pipeline of Similar Projects

The Pearl is unlikely to be an isolated project. La Jolla's commercial corridors—Girard Avenue, Prospect Street, Pearl Street, Herschel Avenue—contain numerous single-story commercial buildings owned by aging landlords or investors evaluating exit strategies. As land values climb ($611/sq ft average) and residential demand remains strong, expect additional conversion proposals over the next 3-5 years.

Builders who establish relationships with commercial property owners, local architects specializing in mixed-use, and developers active in coastal markets can position for this pipeline. Joining organizations like the La Jolla Community Planning Association (as an observer), attending Development Permit Review Committee meetings, and networking at La Jolla business events provides early intelligence on projects entering the pipeline.