CREVisionSD
The Campus at Horton, one of San Diego’s most ambitious redevelopment projects, is now facing serious financial challenges. Once envisioned as a major shift in San Diego’s office and retail market, this 1.3M SF mixed-use campus is now at risk of foreclosure due to unpaid debts.
Stockdale Capital Partners, the developer behind the project, received a $399M construction loan in 2020 to fund the development. However, the company now owes $351M to its lender, AllianceBernstein. Additionally, contractors and subcontractors working on the project have filed mechanic’s liens for millions in unpaid work between April 2024 and January 2025.
Project Vision
Stockdale purchased the site for $175M in 2018 and planned to develop a net-zero carbon, mixed-use campus featuring 772K SF of office space, 300K SF of retail, and 800 apartment units. The project was expected to create over 3,000 jobs and contribute more than $1B in economic impact.
City of San Diego Lease Talks
One of the biggest setbacks occurred in December when the city backed out of negotiations to lease a significant amount of office space for a new City Hall. The decision to withdraw stemmed from projected budget deficits.
Setbacks Affecting Progress
Several other factors have contributed to the slowdown, such as rising interest rates and high construction costs. Many developers are in tough spots as the cost of construction loans has surged from 4-5% to over 10%, making financing significantly more expensive. Inflation and supply chain disruptions have further driven up construction costs.
What’s Next?
Despite these financial hurdles, Stockdale is moving forward with plans to open retail spaces in Fall 2025. Tenants like Sprouts and Studio Three (a fitness studio offering cycling, interval training, and yoga) are expected to open, which could help attract foot traffic. However, the original vision of attracting tech and life sciences tenants to the office space has been difficult
If Stockdale cannot pay the $351M debt by May 7, 2025, AllianceBernstein could take control of the property. This may slow down the expected 2027 completion or lead to a change in the project's direction.
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