Kilroy Realty Corp. has fully leased the retail portion of its One Paseo development in Carmel Valley, and completed the first 237 apartments. One Paseo will start construction of the interior of the project’s two office buildings.
All but four of the 43 shops and restaurants in One Paseo will be open by the end of the year, said Brian Lewis, senior vice president for retail development with Kilroy Realty.
Lewis said tenants include a mix of about one-third national brands, one-third regional and one-third local with enough variety that someone could spend an entire day at One Paseo.
“You can wake up, drive here in the morning, get on the bike at SoulCycle, then roll into breakfast at Parakeet Café, then get your hair blown dry at DryBar, experience some great unique meat and shop for dinner at The Butchery,” Lewis said. “The design component lends itself to that.”
96,000 Square Feet of Retail Space
Built on a 23-acre site, One Paseo has 96,000 square feet of retail space in low rise buildings in what Kilroy described as a farmhouse style with pathways that meander through the project, linking the retail portion to the two office buildings under construction and the apartments.
The residential portion will eventually have 608 apartments in two buildings — one of which is six stories high and one that is four stories.
About 35 percent of the first 237 apartments available for rent have been leased and as of mid-October, about 45 tenants had moved in, said Jay Rey-Hipolito, Kilroy Realty’s vice president of residential development.
“The unique thing was we had approximately 60 people prelease with us without ever having seen the project. They basically did it off renderings. That was something I was pleasantly surprised with,” Rey-Hipolito said. “It speaks to the anticipation for the project. It’s something that’s been discussed locally for some time so we had quite a lot of interest since we opened our doors.”
The apartments average 1,000 square feet, ranging from about 600 square feet for studios to about 2,100 square feet for townhome villas, Rey-Hipolito said.
Monthly rents range from $2,350 for studios to $5,600 for three-bedroom apartments, Rey-Hipolito said.
“The townhomes will have some exclusivity in terms of privacy and access and will have finished above our standard units,” Rey-Hipolito said. “A lot of them will have two-story ceiling heights.”
Amenities in the residential area of One Paseo include a pool, a 6,000 square-foot, two-story fitness center, a lounge with booths for studying or working and what Rey-Hipolito called a “collision space” where tenants can bump into each other and strike up conversations.
1,177 Parking Spaces
There are also 1,177 parking spaces.
Although there’s no specific demographic that is the marketing target for tenants, Rey-Hipolito said the expectation is that the project will initially attract empty-nesters looking to down-size.
Families are more likely to be attracted to the apartments when school is out, he said.
“We expect to see families begin to move in in the spring of 2020, then through the summer,” Rey-Hipolito said.
With the retail shopping center at their doorstep, “It’s a great place for people of all ages and different interest groups to get their interest served,” Rey-Hipolito said.
Construction of the twin office buildings with about 286,000 square feet of space is “piggy backing on the retail now that the retail is up and running,” said Nelson Ackerly, a senior vice president of Kilroy Realty.
Retail as Amenity
The retail shops and restaurants are an important attraction for those interested in leasing office space at One Paseo, Ackerly said.
“The overall One Paseo is really the only walkable area for office in Del Mar Heights,” Ackerly said.
The retail center is the amenity for the office project, “especially for companies that have high value employees,” Ackerly said. “You want coffee, you want to go to a workout, you want to meet someone after work for dinner — it’s all right there.”
The first of the office spaces should be ready to be occupied by mid to late summer 2020, Ackerly said, adding that about 85 percent of the office space will be leased before construction is finished.