SANDAG University Avenue Bikeway: City Heights Construction Disrupts $44.6M Project Through September 2027 - Cash Buyer Solutions

The $44.6 Million SANDAG University Bikeway: Project Scope and Timeline

The University Avenue Bikeway represents one of SANDAG's most ambitious and expensive bike infrastructure investments, with a total budget of approximately $44.6 million. The project stretches along University Avenue from 69th Street to Estrella Avenue, and continues along Estrella Avenue from University Avenue to Orange Avenue, covering 2.8 miles of roadway between La Mesa and the heart of City Heights.

Project Components and Features

SANDAG selected the University Avenue corridor as part of its Safety Focus Network, which identifies areas with higher collision frequencies. A City of San Diego pedestrian collision analysis found that residents in dense, walkable neighborhoods such as City Heights, Downtown, and Southeastern San Diego are 10 times more likely to be struck by a vehicle than residents in lower-density communities.

Funding Sources: Who's Paying for the Transformation?

The $44.6 million price tag breaks down as follows:

• Local Tax Dollars: 28% of project funding (~$12.5 million)
• State and Federal Sources: 72% of project funding (~$32.1 million)

For City Heights property owners, the funding mix matters less than the construction timeline. Whether taxpayers contribute $12 million or $40 million, the reality remains: 18 months of disruption affects property values, quality of life, and marketability regardless of who funds the project.

Construction Timeline: 7 Months Down, 11 Months to Go

As of October 2026, the SANDAG University Avenue Bikeway project is approximately 39% through its scheduled timeline:

The 18-month construction window creates a unique opportunity for cash buyers and a potential exit strategy for overwhelmed homeowners. Property owners who listed their homes during the initial groundbreaking phase faced immediate buyer hesitation. Those who waited until mid-construction now confront the worst possible timing: maximum disruption with no end in sight for nearly a year.

Unlike the earlier University Avenue Complete Street project between Fairmount and Euclid (which experienced severe delays, pushing a project originally scheduled for summer 2024 completion into early 2025), SANDAG has publicly committed to the September 2027 timeline. However, City Heights residents remain skeptical given the neighborhood's history of protracted construction delays.

The $2 Million Lawsuit: Supermercado Murphy's Validates Seller Concerns

The most significant development validating property owner fears emerged when Supermercado Murphy's, a longstanding City Heights grocery store at 4580 University Avenue, filed a $2 million lawsuit against the City of San Diego and San Diego Gas & Electric. While this lawsuit relates to an earlier University Avenue construction project (the $13.2 million Complete Street improvements that began in May 2023), the precedent terrifies property owners facing the current SANDAG bikeway disruption.

Lawsuit Details and Business Impact

According to owner Ron Kassab, the earlier construction project "devastated" his store:

• Access Restrictions: At worst, workers reduced the store entrance to approximately 3 feet of access during sidewalk work
• Timeline Failures: The project was originally scheduled to finish in 2024 but didn't fully wrap up until early 2026
• SDG&E Delays: Most delays were caused by San Diego Gas and Electric ignoring requests to identify underground vault locations
• Revenue Loss: Kassab claims the construction cost his business millions of dollars in lost customers

The lawsuit seeks a minimum of $2 million compensation for loss of business and access. While filed against the City and SDG&E rather than SANDAG, the legal action establishes crucial precedent:

1. Construction Impact Is Quantifiable: Businesses can demonstrate measurable financial harm from infrastructure projects
2. Delays Create Compounding Damage: Extended timelines multiply the economic impact on property owners
3. Access Issues Justify Legal Action: Restricted entry and parking elimination constitute compensable harm

For homeowners along the current SANDAG bikeway route, the Supermercado Murphy's lawsuit validates their concerns about property value impact during the 18-month construction window.

Property Impact Zones: Who's Affected by the University Avenue Bikeway?

The 2.8-mile project corridor creates distinct impact zones based on proximity to active construction:

Primary Impact Zone (Immediate Frontage)

Properties with direct frontage on University Avenue from 69th Street to Estrella Avenue, and along Estrella Avenue from University Avenue to Orange Avenue, experience:

• Parking Elimination: Separated bike lanes permanently remove on-street parking
• Access Disruption: Driveways blocked or limited during active construction phases
• Noise Pollution: Jackhammers, heavy machinery, and resurfacing equipment operating 7-10 hours daily
• Dust and Debris: Construction particulates affecting air quality and property cleanliness
• Reduced Visibility: Fencing, equipment, and barriers obscuring storefronts and homes

Secondary Impact Zone (Within 1-2 Blocks)

Properties within one to two blocks of the construction corridor face:

• Traffic Rerouting: Vehicles seeking alternative routes increase congestion on residential streets
• Parking Spillover: Customers and residents displaced from University Avenue park in adjacent neighborhoods
• Property Showing Challenges: Real estate agents struggle to guide buyers through construction detours
• Appraisal Complications: Lenders hesitant to finance purchases in active construction zones

Tertiary Impact Zone (Broader City Heights)

The entire City Heights neighborhood experiences:

• Transit Disruptions: Bus route modifications during platform installation
• Emergency Access Concerns: Fire and ambulance response time impacts
• Negative Perception: Buyers avoiding the entire neighborhood due to construction reputation
• Market Stigma: Listing discounts required to offset construction-related concerns

Property Value Impact: Construction Discount vs. Post-Completion Walkability Premium

Understanding the property value trajectory during and after construction is critical for City Heights homeowners considering their options:

During-Construction Value Impact (March 2026 - September 2027)

Research on construction impact reveals significant temporary devaluation:

• Appraisal Discounts: Cook County Assessor's Office recognizes under-construction properties sell at discounts, reducing valuations by up to 50% until completion
• Extended Marketing Times: Properties in construction zones require additional discounts to attract buyers willing to tolerate disruption
• Financing Challenges: Lenders hesitant to approve mortgages in active construction zones due to appraisal complications

City Heights median home prices already lag San Diego's overall market:

The construction impact compounds existing affordability advantages. Buyers seeking City Heights properties during active construction can negotiate additional 5-15% discounts beyond the neighborhood's baseline affordability relative to San Diego's median.

Post-Completion Walkability Premium (2028 and Beyond)

Once the bikeway opens in September 2027 and the neighborhood adjusts to the new infrastructure, research suggests significant appreciation potential:

• San Diego Walkability Premium: Properties in highly walkable San Diego neighborhoods (Walk Score 90+) command 12% premiums over less walkable areas (Walk Score 50)
• National Bike Infrastructure Research: Studies of 11 U.S. cities from 2000-2019 found proximity to bike infrastructure tends to positively influence housing market values. The majority of research indicates bike paths either increase property values by 5-15% or have neutral effects
• Property Type Variations: Higher Walk Scores correlate positively with multi-family property values while showing negative correlation with single-family properties
• Transit-Adjacent Value Increase: The 14 bus boarding platforms could create localized transit premiums of 3-8%

Frequently Asked Questions

Conclusion: Navigating the 18-Month Construction Window

The SANDAG University Avenue Bikeway represents a $44.6 million bet on City Heights' future as a walkable, transit-oriented, bike-friendly neighborhood. For the next 11 months through September 2027, property owners along the 2.8-mile corridor from 69th Street to Estrella Avenue will endure parking elimination, street closures, noise, dust, and access restrictions that make daily life challenging and property sales complicated.

The $2 million Supermercado Murphy's lawsuit validates these concerns, demonstrating that construction impact creates quantifiable economic harm for businesses and property owners. While that lawsuit addresses an earlier project, the precedent matters: infrastructure improvements impose real costs on those who must endure the construction phase.

For City Heights property owners evaluating their options, the decision comes down to timing and personal circumstances. Those prioritizing immediate relief can sell to cash buyers within 7-14 days, escaping construction chaos at fair prices that account for both current disruption and future appreciation potential. Those able to endure 11 more months can wait until September 2027 completion, avoiding maximum construction discount and marketing properties with completed improvements. Long-term believers in City Heights transformation can hold for 3-4 years, capturing full 8-12% walkability appreciation as the neighborhood evolves.

The University Avenue Bikeway will ultimately deliver safer streets, better transit connectivity, and improved neighborhood livability. But between now and September 2027, property owners face legitimate disruption—and for many, a fast cash sale offers the most sensible path forward.