East Village – Downtown’s largest neighborhood, is experiencing a surge of development, with literally thousands of units coming on board in the near future. East Village is not only the largest neighborhood in Downtown, but the most under-developed, making it a prime spot for mass gentrification.

Locals are not the only ones taking notice to this changing landscape with loads of potential. Major corporate investors are dropping serious coin into local assets. MetLife recently announced the acquisition of 49% of 1330 Market Street (13th & Market) for $54 million. That puts the value at over $415k per door.

Major projects are currently underway; the Pinnacle two-tower project on 15th and Island, Broadstone Makers Quarter on 16th and E, The Richman Group’s F11 (F and 11th) and the Urban Discovery Academy with many more in final stages of permitting.

Although the development scene is booming, the neighborhood still faces some significant challenges. First is homelessness. It has been a growing problem and it finally seems there is a collective plan to address it, but the majority of the homeless population resides on the streets of the East Village which is causing increased local crime and hindering local businesses. Second, the old City Library is becoming more and more of a blemish on the neighborhood. It is centrally located within the EV boundaries and is situated on half of a city block. It has become another homeless hang out spot and the building is deteriorating. Councilman Todd Gloria had a great idea  to turn the vacated building into an incubator for small businesses, but we have not seen any action towards this renovation. Other challenges include a significant lack of park and outdoor public space, infrastructure & parking issues and vacant retail space (see post on Creative Office Space).

The good news, there are a lot of great people that want to have a role in shaping the East Village as a true urban neighborhood. One that can accommodate the majority of the City’s density needs all while embracing the culture and small business ecosystem that has and will continue to make it unique.

For more information about Fabric Investments visit www.fabricinvestments.com.

Brendan Foote is principal of Fabric Investments, a creative development + redevelopment company in San Diego, CA.