San Diego Unified 1,500-Unit Workforce Housing Approved January 26, 2026

What the January 26 Board Vote Authorized

At a special affordable housing workshop on January 26, 2026, the San Diego Unified Board of Education authorized district staff to begin due diligence and negotiate best-and-final term sheets with two selected developers: Protea + Malick for the Eugene Brucker Education Center site, and Mirka Investment for the Commercial Street property.

According to the official San Diego Unified School District announcement, the board voted to advance the Protea + Malick proposal that includes 1,500 apartment units affordable for staff earning between 50% Area Median Income and 120% AMI—currently $80,700 to $156,950 for a family of four in San Diego County.

The Eugene Brucker site at 4100 Normal Street in University Heights represents the largest of the five development sites originally considered by the district. All three companies that bid on Eugene Brucker proposed 700 or more units, but Protea + Malick's 1,500-unit proposal more than doubled competing bids. The combined 1,674 units across both sites establish San Diego Unified as the state leader in educator workforce housing development.

Eugene Brucker Site: 1,500 Units Transform University Heights

The Eugene Brucker Education Center currently houses the San Diego Unified School District headquarters on a 6.5-acre parcel at 4100 Normal Street, positioned at the edge of University Heights and Hillcrest. Protea + Malick's authorized proposal transforms this administrative property into 1,500 workforce housing units serving the broadest income range approved by the district—50% to 120% AMI.

This income targeting means units will serve not only traditional affordable housing residents but also moderate-income teachers, administrators, and staff who earn too much to qualify for most affordable housing yet struggle with San Diego's median home price of $938,000.

Protea Properties and Malick Infill Development bring proven experience in affordable and mixed-income housing, including the Parco co-living development in National City—a 127-unit project serving 80% to 110% median income tenants—and the 156-unit Bayview Plaza mixed-use project. Their track record in transit-oriented, workforce-focused developments positioned them as the board's preferred partner for the district's most ambitious site.

How This Compares to All California School Districts Combined

San Diego Unified's January 26, 2026 authorization establishes an unprecedented scale for educator housing in California. According to a report by the Center for Cities + Schools at UC Berkeley and cityLAB-UCLA in partnership with the California School Boards Association, San Diego Unified's development of more than 1,500 affordable workforce housing units nearly doubles the nine educator housing developments that combined for 887 units built across the entire state of California since 2002 or scheduled for completion by 2027.

This comparison reveals the transformative scope of San Diego Unified's commitment. While most California school districts have avoided or minimized affordable housing development on district properties, San Diego Unified has set a goal of providing housing for at least 10% of its workforce by 2030. The district employs approximately 13,000 staff members, meaning the 10% target translates to approximately 1,300 units—a threshold already exceeded by the Eugene Brucker and Commercial Street projects alone.

Post-Approval Timeline: Due Diligence to Construction

The January 26 board authorization triggers a multi-phase timeline before construction begins. Phase one—now underway as of late January 2026—involves developer due diligence and negotiation of best-and-final term sheets between district staff and the selected developers.

For University Heights cash buyers and investors, this timeline creates a 24 to 30-month pre-construction window to acquire nearby properties before the development's impact on neighborhood character and property values becomes fully realized.

University Heights Real Estate Market: Investment Context

University Heights has established itself as one of San Diego's fastest-appreciating neighborhoods, making the workforce housing authorization particularly relevant for real estate investors. According to The Luxury Playbook's San Diego real estate market overview for 2025-2026, growth-oriented areas like North Park, South Park, and University Heights are expected to show appreciation outperforming citywide averages, offering value opportunities for both owner-occupiers and investors.

For cash buyers focused on long-term appreciation, the 2026 market reset combined with the Eugene Brucker workforce housing authorization creates a strategic acquisition window. The rental market shows vacancy rates hovering around 4.0% with rents projected to rise 1% to 3%, benefiting landlords through tenant retention and upward pricing potential.

Impact on University Heights Property Values

The workforce housing development's impact on surrounding University Heights property values depends on multiple factors, with comprehensive research suggesting neutral to positive outcomes.

University Heights' average household income of $127,662 positions it as an upper-middle-income neighborhood, creating mixed implications. However, the Eugene Brucker project's 50% to 120% AMI targeting—including moderate-income teachers earning $65,000 to $140,000—reduces income disparity concerns compared to traditional 30% to 60% AMI affordable housing.

Protea + Malick's track record of high-quality, well-maintained developments further mitigates negative property value risk. For cash buyers, the research suggests properly executed workforce housing in University Heights will likely have neutral to slightly positive impact on surrounding property values, particularly if the development improves neighborhood amenities and reduces teacher turnover at nearby schools.

Cash Buyer Opportunities: Strategic Acquisition Before Construction

The January 26, 2026 board authorization reduces investment uncertainty and creates strategic opportunities for cash buyers targeting University Heights acquisitions. The shift from 'proposed' to 'authorized' status means investors can now make data-driven decisions based on a confirmed 1,500-unit project rather than speculation.

According to real estate investment analysis for San Diego in 2026, high-performing areas include North Park, City Heights, University Heights, and South Park, where investor interest is rising due to strong rent-to-price ratios and neighborhood revitalization. Cash buyers can acquire properties near the development site at current market prices, then benefit from potential appreciation as construction progresses and the first 1,500 workforce housing residents move into University Heights.

Commercial Street Site: 174 Units in Barrio Logan

While Eugene Brucker dominates headlines with 1,500 units, the January 26 board authorization also approved Mirka Investment's proposal for 174 workforce housing units at the former Irving Street Warehouse site at 2101 Commercial Street. This site targets lower-income staff earning 30% to 80% AMI—$49,600 to $132,400 for a family of four in San Diego County.

Mirka Investment's proposal includes a 6,000-square-foot child care facility and $7.5 million in guaranteed rent to the school district. The Commercial Street location serves San Diego Unified staff working in Barrio Logan, Logan Heights, and downtown San Diego, providing walkable access to multiple employment centers.

The 174-unit scale is significantly smaller than Eugene Brucker, but the guaranteed rent structure and child care amenity demonstrate creative approaches to workforce housing beyond basic apartment construction. For investors, the Commercial Street project has less immediate impact than Eugene Brucker due to its smaller scale and less affluent surrounding neighborhood, but it contributes to the broader pattern of San Diego Unified transforming underutilized district properties into revenue-generating, staff-supporting assets.

What Cash Buyers Need to Know Now

The January 26, 2026 board authorization creates immediate action items for cash buyers and real estate investors targeting University Heights.

For cash buyers focused on long-term appreciation, University Heights continues to make sense according to the San Diego Real Estate Forecast for 2026, which notes that despite high entry prices and affordability challenges, the market remains fundamentally strong with consistent appreciation, high rental demand, and strategic positioning within California's coastal economy. The workforce housing authorization adds a neighborhood improvement catalyst to University Heights' existing fundamentals.

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