San Marcos Restaurant Row: 261-Unit Lennar Project Breaks Ground

Project Scope: 190 + 71 Townhomes, 1-Acre Park, 13,300 SF Commercial Space

The Restaurant Row redevelopment consists of two distinct but complementary projects that together will reshape this North County landmark:

Main Development Section

• 190 townhomes across multiple buildings
• 10,400 square feet of commercial space for retail and dining
• 17,000 square feet of outdoor dining areas integrated with commercial tenants
• 1-acre neighborhood park (Old California Row Park) with extensive amenities

Secondary Development Section

• 71 residential units
• 2,900 square feet of commercial mixed-use space
• Additional private open space and parking facilities

Combined, the two sections total approximately 13,300 square feet of commercial space—a significant retail and dining footprint that requires specialized commercial construction expertise beyond standard residential work.

Cost Benchmarks: What 261-Unit Townhome Projects Cost in 2026

Understanding project economics helps subcontractors position for realistic bid opportunities. Based on current California construction costs and comparable projects:

These figures reflect California's elevated construction costs in 2026, with labor representing 35-39% of total construction costs in San Diego County according to current market analysis. For context, a comparable 720-unit market-rate development in the region carries a price tag of approximately $350 million, equating to roughly $486,000 per unit—suggesting the Restaurant Row project likely falls in the $80-150 million total investment range.

For Pacific Beach and La Jolla contractors estimating similar coastal projects, these figures provide baseline comparisons, though coastal construction typically adds 10-15% for site constraints, coastal permits, and specialized materials required for projects near Tourmaline Surfing Park or along Mission Beach's waterfront.

San Diego County Construction Timeline: Spring 2026 Start Through Mid-2028 Completion

The project timeline offers strategic insight for subcontractors planning their 2026-2028 workload:

Phase 1: Site Preparation (Currently Underway - Spring 2026)

• Land grading: Currently in progress
• Underground utility installation: Currently in progress
• Permit finalization: Under California's strict timeline requirements, permits for 26+ unit projects must be reviewed within 60 business days

Phase 2: Vertical Construction (Spring 2026 - Late 2026)

• Foundation work: Spring-Summer 2026
• Structural framing: Summer-Fall 2026
• Townhome sales launch: Late Spring 2026
• First completed units: Late 2026/Early 2027

Phase 3: Phased Completion (2027 - Mid-2028)

• Ongoing townhome construction: 2027-2028
• Commercial space buildout: 2027-2028
• Park and amenity construction: 2027-2028
• Final project completion: Mid-2028 (target)

This 2+ year construction timeline creates sustained subcontracting opportunities across multiple trade categories. Importantly, California's recent housing law updates have streamlined permit processing: AB 1308 now requires local building departments to complete final inspections within 10 business days for residential projects with 10 or fewer units, while AB 253 mandates jurisdictions provide estimated processing timeframes for post-entitlement building permits.

For La Jolla and Pacific Beach contractors currently working on smaller coastal projects, this timeline demonstrates how major developers phase large-scale work—lessons applicable to coastal density projects like Pacific Beach's proposed Turquoise Tower or future La Jolla Shores mixed-use developments. Mission Beach contractors can similarly benefit from understanding this phased approach.

North County & Coastal Subcontracting Opportunities: What Trades Lennar Needs Through 2028

For contractors and suppliers looking to position for work on this project or similar Lennar developments, understanding the full trade scope is essential:

Core Residential Trades (High Volume, Multi-Year)

• Concrete/Foundation Contractors: 261 townhome foundations plus park infrastructure
• Framing Contractors: Multi-story townhome framing (2-3 stories typical for Lennar townhomes)
• Roofing Contractors: Clay tile roofing to match mission-style design aesthetic
• Electrical Contractors: Critical shortage trade in San Diego County; high demand
• Plumbing Contractors: Residential plumbing for 261 units plus commercial infrastructure
• HVAC Contractors: Climate control systems for townhomes and commercial spaces
• Drywall/Interior Finishing: Large-scale interior buildout work
• Flooring Contractors: Coordinated installation across phased unit completions

Specialty Trades (Unique Skill Sets Required)

• Pickleball Court Installers: 4 courts in park (cost: $100,000-$200,000 total at $25,000-$50,000 per court)
• Skate Park Builders: "All-wheel flow course" for skateboards, rollerblades, scooters (custom concrete construction averaging $40-$60/sq ft)
• Public Art Installation: Preservation and integration of original wooden beams; new public art pieces
• Playground Equipment Installation: Commercial-grade playground construction
• Stage/Event Infrastructure: Concert stage and public event space construction
• Historic Preservation Specialists: Salvaging and incorporating original Restaurant Row wooden beams

Commercial Construction Trades

• Commercial Tenant Improvement: 13,300 sq ft of retail/dining buildout
• Outdoor Dining Construction: 17,000 sq ft of covered/uncovered patio infrastructure
• Commercial Kitchen Contractors: Restaurant tenant spaces
• Storefront/Glass Contractors: Retail facades and commercial entrances

Landscaping and Site Work

• Landscape Contractors: 1-acre park plus common areas throughout development
• Irrigation Specialists: Water-efficient irrigation for extensive landscaping
• Hardscape Contractors: Pedestrian walkways, plaza areas, seating areas
• Lighting Contractors: Park lighting, pathway lighting, commercial area lighting

Materials Suppliers (Multi-Year Contracts Possible)

• Lumber suppliers: Framing materials for 261 units (substantial volume)
• Concrete suppliers: Foundations, hardscape, skate park construction
• Roofing materials: Clay tiles for mission-style aesthetic
• Windows/doors: 261 units requiring multiple windows/doors per unit
• Plumbing fixtures: Kitchens and bathrooms for 261 units
• Electrical materials: Panels, wiring, fixtures for residential and commercial

Heritage Preservation: Salvaging Wooden Beams from Original Restaurant Row

One of the project's most distinctive elements is Lennar's commitment to honoring the site's history. The original Old California Restaurant Row was established in 1978 by Jim and Vera Eubank, who transformed their small 1972 farm stand (Rancho Mercado) into a beloved destination featuring California Mission-style architecture.

Lennar has preserved wooden beams from the original construction, which will be incorporated into the new development. Additionally, the project will feature mission-style design elements including:

• Aged stucco finishes
• Mexican tiles
• Clay tile roofs
• Mission-style architectural details

The one-acre park has been officially named "Old California Row Park" as a direct homage to the Eubanks family's original development. This historical preservation element requires specialized contractors experienced in working with reclaimed materials and executing design that honors architectural heritage while meeting modern building codes.

For coastal builders in Pacific Beach, La Jolla, and Mission Beach, this heritage preservation approach offers a valuable case study. Many coastal communities have similar opportunities to integrate historical elements into new density projects, creating differentiation in the marketplace while respecting community character—a critical factor in securing local support for development proposals.

Amenity Construction: Pickleball Courts, Skate Park, Public Art Installation

The one-acre Old California Row Park will feature an impressive array of amenities that require specialized construction expertise:

Four Pickleball Courts

Construction costs: $25,000-$50,000 per court (total: $100,000-$200,000)

Key components:

• Site development: $7,000 per court area
• Court surfacing, coloring, and striping: $10,000 per court
• Perimeter fencing: $2,000 per court
• Court lighting: $1,800 per court

Pickleball has become the fastest-growing sport in America, making these courts both a community amenity and a strategic marketing feature for the development. Contractors with pickleball court experience can command premium rates due to specific USAPA (USA Pickleball Association) dimensional and surfacing requirements. Pacific Beach and Mission Beach have seen similar pickleball court demand, with Bird Rock residents advocating for courts at Kate Sessions Park and Pacific Beach Recreation Center considering court additions.

All-Wheel Flow Course (Skate Park)

Construction costs: $40-$75 per square foot for custom concrete construction

The "all-wheel flow course" designed for skateboards, rollerblades, scooters, and bikes represents specialized construction requiring contractors experienced in:

• Custom concrete skateable surface design
• Proper transitions and flow patterns
• ADA accessibility integration
• Safety surfacing and fall zones

For context, a 10,000 square foot skatepark typically costs around $550,000, suggesting the Restaurant Row flow course (likely smaller) could represent a $200,000-$400,000 construction package depending on size and complexity.

Additional Park Amenities

• Playground: Commercial-grade equipment and safety surfacing
• Lawn areas: Turf installation and irrigation
• Concert stage: Permanent or semi-permanent performance infrastructure
• Picnic areas: Tables, shade structures, gathering spaces
• Public restrooms: ADA-compliant facility construction
• Public art installations: Integration of salvaged beams and new art pieces

Commercial Components: 10,400 SF Retail + 17,000 SF Outdoor Dining Design

The commercial elements of Restaurant Row represent a significant departure from pure residential construction, requiring contractors with mixed-use and commercial tenant improvement experience.

Retail Space (10,400 Square Feet)

Estimated construction cost: $250-$400 per square foot = $2.6M-$4.2M

This commercial space will likely be delivered as "vanilla shell" with basic infrastructure, then require tenant improvement work as retail and dining tenants sign leases. Opportunities include:

• Base building construction (shell)
• Tenant improvement buildouts (multiple separate contracts as tenants secure spaces)
• Restaurant kitchen installations
• Retail fixture installation
• Storefront and signage work

Outdoor Dining (17,000 Square Feet)

The 17,000 square feet of outdoor dining space represents a unique construction challenge, particularly in California's varying weather conditions. Design considerations include:

• Covered and uncovered dining areas
• Weather-resistant materials and finishes
• Heating elements for cooler evenings
• Lighting design for evening dining
• Planters and landscaping integration
• ADA accessibility throughout

This substantial outdoor dining footprint echoes the original Restaurant Row concept while meeting modern code requirements and contemporary dining expectations. For coastal contractors, this outdoor dining expertise translates directly to similar opportunities in Pacific Beach, La Jolla, and other beach communities where outdoor dining is a primary draw. These outdoor dining design principles apply directly to Pacific Beach's Grand Avenue corridor and La Jolla Shores restaurant district, where outdoor dining faces similar weather variability and year-round appeal requirements.

Lessons for Pacific Beach, La Jolla & Mission Beach Builders: Applying Mixed-Use Model to Coastal Communities

While the Restaurant Row project is located 25 miles inland from Pacific Beach—approximately 35 minutes via Interstate 5 and State Route 78—the development model offers critical lessons for coastal builders navigating density, mixed-use requirements, and community acceptance:

Lesson 1: Heritage Preservation Builds Community Support

Lennar's decision to salvage original wooden beams and name the park "Old California Row Park" demonstrates how acknowledging site history can soften opposition to density increases. In Pacific Beach and La Jolla—where proposed projects like the 239-foot Turquoise Tower face fierce community resistance—integrating historical elements could provide crucial differentiation.

Pacific Beach and La Jolla both have rich architectural and cultural heritage. Developers who identify opportunities to honor that heritage while adding density may find smoother approval pathways than those proposing complete demolition and replacement. Similar heritage preservation opportunities exist throughout San Diego's coastal communities—from Bird Rock's historic beach cottages to Tourmaline Surfing Park's cultural significance in Pacific Beach—where developers who honor local character gain community support for density.

Lesson 2: Amenity-Rich Public Spaces Create Value Beyond Residential Units

The one-acre park with pickleball courts, skate park, playground, and concert stage transforms this project from a simple housing development into a community destination. For coastal builders, similar amenity investments—particularly those accessible to the broader public—can shift the narrative from "adding density" to "creating community assets."

Current Pacific Beach developments like the 75-unit Rose Creek Village affordable housing project (opening late 2026) demonstrate this principle: despite breaching the 30-foot coastal height limit for the first time, the project gained approval partly due to its 100% affordable housing focus and community benefits.

Lesson 3: Commercial Integration Requires Early Planning

Restaurant Row's 13,300 square feet of commercial space plus 17,000 square feet of outdoor dining wasn't an afterthought—it was core to the project design from inception. Coastal builders should plan commercial components early in the design process, ensuring proper infrastructure (grease interceptors, ventilation, parking, loading zones) is integrated rather than retrofitted.

Coastal builders in Pacific Beach and La Jolla face the additional complexity of California Coastal Commission review, requiring even earlier commercial planning to address coastal access, view corridors, and public benefit requirements that don't apply to inland San Marcos projects. Mission Beach projects face similar coastal permitting challenges.

Lesson 4: Phased Construction Manages Market Risk

Lennar's 2+ year construction timeline with first residents moving in late 2026 while construction continues through mid-2028 allows the developer to gauge market reception and adjust remaining units accordingly. For smaller coastal builders, similar phasing strategies—even on smaller projects—can reduce exposure to market shifts.

Lesson 5: Townhome Density Works in California's Current Market

With 261 units on the former Restaurant Row site, Lennar is betting on townhome density as the optimal product type for this location. This aligns with broader trends in San Diego County, where Lennar is simultaneously building townhome projects including:

• The Trails in Carmel Mountain Ranch: 1,020 "attainably priced townhomes" with 180 deed-restricted affordable units
• Hudson at 3 Roots: Attached multi-story townhomes (1,518-1,872 sq ft, 2-3 bedrooms) in western Mira Mesa
• Fusion in El Cajon: New townhome community (opening soon)

For Pacific Beach and La Jolla builders, townhome density offers a middle path between single-family detached homes (scarce available land) and high-rise towers (significant community opposition). The Restaurant Row model demonstrates how townhome density can be executed at scale while maintaining neighborhood character.

Lennar San Diego Procurement Process: How Coastal Contractors Can Position for Major Developments

For subcontractors interested in securing work on the Restaurant Row project or future Lennar developments, understanding the procurement process is essential:

Formal Bidding Requirements

Lennar typically requires:

• Non-collusion affidavits
• Lists of proposed subcontractors (if you're a general contractor bidding to Lennar)
• Proof of licensing and insurance
• Prevailing wage compliance documentation (where applicable)
• Safety records and OSHA compliance history
• References from similar-scale projects

Pre-Bid Conferences

Major Lennar projects often include mandatory pre-bid conferences at Lennar's San Diego office. These conferences provide critical project details and allow subcontractors to ask questions about scope, schedule, and requirements. Missing the pre-bid conference typically disqualifies bidders from consideration.

Where to Find Lennar Bid Opportunities

• CaliforniaBids.com: Aggregates bid opportunities from Lennar Homes of California, Inc.
• Construction.com: Posts official Lennar proposal and bid notices
• Direct contact with Lennar procurement: Building relationships with Lennar's San Diego division procurement team

Qualifying as a Lennar Subcontractor

Lennar maintains preferred subcontractor lists organized by trade and geography. To qualify:

1. Submit formal prequalification packages: Even before specific projects bid, submit your company's qualifications to Lennar's San Diego division
2. Demonstrate capacity: Lennar needs subcontractors who can handle multiple units simultaneously and maintain schedule across 2+ year timelines
3. Show financial stability: Bonding capacity and financial statements demonstrating ability to carry large-scale work
4. Provide safety records: EMR (Experience Modification Rate) below 1.0 strongly preferred
5. Prove local presence: San Diego-based contractors with established local workforce have significant advantages. Lennar's preference for San Diego-based contractors extends to all county regions, from Bird Rock to San Marcos, with local knowledge and established relationships with inspectors and suppliers providing significant competitive advantages.

Pacific Beach and Mission Beach contractors should note that Lennar's San Diego division actively seeks local subcontractors across the county, from coastal Bird Rock to inland San Marcos, particularly trades that can demonstrate coastal construction experience with complex permits and tight site constraints.

Procurement Timeline Reality Check

With grading already underway and vertical construction starting spring 2026, procurement for foundation, framing, and core trades is likely already in process or completed. However:

• Specialty trades (pickleball, skate park, public art) typically bid later in the process
• Tenant improvement work will bid as retail/dining tenants sign leases (2027-2028)
• Finish trades (flooring, painting, landscaping) will have ongoing opportunities as units complete in phases
• Materials suppliers can often negotiate contracts even mid-project as original suppliers face capacity constraints