Project Overview
Adaptive Reuse in Action
Project Overview
A 250,000 sq ft Class-A office tower will be converted into approximately 200 units of supportive housing with three full service floors. The design emphasizes privacy, calm, and long-term stability.
Why Now?
- Office properties selling at 50 to 70 percent below peak value
- Adaptive reuse is faster and more efficient than ground-up construction
- Strong state policies enable streamlined approvals (SB 6, AB 2011, SB 4)
Capital Plan
- Total development budget: ~$120M
- Acquisition: $25–$40M
- Renovation: $90–$100M
- All-in cost aligns with California norms, with greater speed and sustainability
Tax Advantages for Investors
- 100 percent bonus depreciation
- Opportunity Zone benefits
- Potential historic tax credits
- These incentives create a powerful impact-investment opportunity with significant tax efficiencies.
$130
Million budget
40%
Philanthropy
35%
Impact/OZ investors
25%
Mission-aligned debt capital stack
Financial Sustainability
Elysian Shores will own and operate the property as a 501(c)(3) nonprofit. Its operational model leverages CalAIM programs for Enhanced Care Management (ECM) and Housing Tenancy & Sustaining Services (HTSS), offering predictable revenue streams for ongoing services.
Residents’ rents are supported in part through tenant benefits like Supplemental Security Income (SSI/SSP), while targeted philanthropy fills any remaining gap, projected to be less than $1M/year after stabilization.
This diversified revenue base helps ensure program and financial stability. By thoughtfully blending public funding, tenant resources, and philanthropic support, the project models a scalable pathway to lasting change for San Diego’s unhoused veterans and families.
Financial Foundation
Estimated budget: $130M. The capital stack is structured to maximize both mission and investment impact. $30M in first-loss philanthropic/impact equity absorbs risk and underwrites essential resident services, while $70M comes from senior debt (bank/CDFI) and $30M from grants/tax credit equity (e.g. NMTC).
Located in a Qualified Opportunity Zone (QOZ), this project also benefits from significant bonus depreciation and tax incentives via the One Big Beautiful Bill Act (2025) and streamlined zoning under AB 2011/SB 6. By-right residential use accelerates delivery of critical housing.
The capital structure and QOZ advantages position Elysian Shores for successful delivery and long-term social impact, blending mission-driven investment with strong financial alignment.
Budget
$130 million
Capital stack
40% philanthropy, 35% impact/OZ investors, 25% mission-aligned debt
Zoning
By-right residential via CA AB 2011 / SB 6
Operating model
Philanthropy + CalAIM (ECM/HTSS) + earned on-site services