Once regarded as an insipid industrial area, Kearny Mesa has caught the eye of developers as ripe for revitalization.

Centrally located and easily accessible via freeway, Kearny Mesa was heavily concentrated with manufacturing facilities through the 1990s. Commercial and residential developers shied away, fearful that tenants and residents would not find the area desirable for retail and professional businesses or homes. When General Dynamics (NYSE: GD) gave up its San Diego presence, the area's future value and development potential was further shrouded with uncertainty.

Now, Kearny Mesa's stigma as an industrial center seems to be fading as new developments spring up.

Lennar Partners expertly subdivided the Spectrum Business Park into parcels designed to attract smaller users in what has become a true mixed-use development success story.

One of the first in the Spectrum site was Marriott, who recognized the value of the location. KMA Architecture & Engineering designed the Courtyard by Marriott for Dallas-based hotel developer Huntington Hospitality Group on a challenging parcel.

Marriott required the building be highly visible from the freeway despite its location behind another parcel with better freeway exposure. To achieve this goal, KMA used contrasting colors and materials on the building exterior to make the structure visible and inviting.

Recognizing the value of the Spectrum Business Park in Kearny Mesa, Courtyard by Marriott was one of first tenants in the site.

Since its completion in the fall of 2001, occupancy rates have been consistently high. The hotel's success has helped to set the stage for other winning developments within the Spectrum site.

Sharp HealthCare has transformed the former General Dynamics main administration building with welcome results. An early investment by National University in the Spectrum property has also created a highly regarded campus and state-of-the-art library facilities.

On the housing front, Lennar Corp.'s (NYSE: LEN) Greystone division is also nearing completion on residential units, which will help to balance the site uses, as well as attract more quality retail businesses.

As a result of the Spectrum transformation, adjacent development has been stimulated and a noticeable amount of quality rehabilitation activity is taking place in and around the neighborhood.

Trammel Crow's (NYSE: TCC) Cabrillo Tech Center, on which KMA provided architectural design services, is a great example of industrial rehabilitation or reuse. Two newly constructed shell office buildings, both of which are fully occupied, now accompany a refurbished manufacturing building near Balboa Avenue and Kearny Villa Road, and San Diego Metropolitan Credit Union is finalizing its rehabilitation of a former manufacturing building on Balboa Avenue. Also worthy of note is an exterior remodel to a late-1970s tilt-up office building at 9620 Chesapeake Drive. Any businesses near Spectrum are sure to benefit from this revitalization, as they continue to occupy and further improve their properties. More new, quality office buildings are in the planning stage or under construction within Spectrum and the surrounding vicinity, including the county of San Diego Building on Clairemont Mesa Boulevard and the adjacent retail center, and two KMA-designed office buildings -- one at 5395 Ruffin Road and another to be occupied by Sunbelt Management Co. on Kearny Mesa Road at Othello Street.

Rehabilitation, reuse: Issues to consider

While it is possible for developers to successfully rehabilitate industrial buildings, many design, engineering and regulatory challenges exist.

Technical considerations including the age of the building, its original occupancy and type of building construction as defined by building codes must be addressed at the onset.

Typically, building codes do not allow a change in the type of occupancy of a building without bringing the entire building into compliance with the code requirements for the proposed occupancy. Additions to existing buildings must comply with code requirements for new buildings of the same type and occupancy. However, compliance of the existing portion of the building with all of the provisions of the newer code is not required with the possible exception of upgrading for disabled access.

In any case, additions and alterations cannot be made to a building in such a way that will cause the existing building to become unsafe. "Unsafe" can include a structurally overloaded condition, inadequate egress from the building, obstruction of exits, building materials that are not fire resistant and other potential fire hazards.

Without proper, professional planning, an unwary property manager or building owner could easily find themselves in the uncomfortable position of dealing with halted construction and double permit fees, not to mention the lost rents associated with the project.

Architects and engineers with experience in building rehabilitation can help keep projects in the black and maximize an investment. Whether rehabilitation or new construction, the selection of a seasoned architectural and engineering design team should be viewed as an important part of a developer's investment strategy.

Architecture firms with in-house engineers or close ties with consulting engineers offer a definite advantage, one that increases with the size of the project. For the best possible project coordination, it is wise to allow the architect to select the design team, based on project needs.

Many property mangers and owners favor pursuing the contractor-led, design-build approach to their project, or portions of the project. There are strong arguments and cases for and against the design-build approach, but the decision should be based on the project's size and complexity, not on construction cost relative to professional fees. The value of early involvement of the architectural/engineering design team will become evident at the project's conclusion, on all but the smallest of projects.

Wise investments by developers and building users, continued good planning by design professionals and quality construction by San Diego area professionals will further spur revitalization and new construction efforts in other areas of the region.

Rubesh is a partner of KMA Architecture & Engineering.

Related Link

KMA Architecture & Engineering: www.kma-ae.co