Navy releases 70-acre NAVWAR property in San Diego’s Midway neighborhood
The U.S. Navy is officially seeking bids to redo its 70.3-acre NAVWAR campus in San Diego’s Midway neighborhood, marking the start of the largest real estate competition in the federal agency’s history.
On Tuesday, the Navy released what is called a Request for Qualifications for the lease and development of its Naval Base Point Loma, Old Town complex, commonly referred to as NAVWAR.
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The 182-page solicitation, posted on the federal procurement site SAM.gov, officially puts the property on the market and invites development teams to respond with their high-level visions for the site and funding plans by February 7.
In April, the federal government will reduce the number of proponents and issue a follow-up request for proposals to three shortlisted teams. The Navy expects to make a final decision before the end of 2023.
The Navy is offering the land for “in-kind” consideration, meaning it would trade the land, in lieu of cash, for new facilities — or 1.43 million square feet of administrative, lab and of replacement warehouse space, and 3,208 parking spaces – built first and at no cost to the agency. The federal government’s preference is to transfer ownership through a 99-year ground lease, subject to the approval of the Secretary of the Navy.
“The potential private redevelopment at (Naval Base Point Loma, Old Town Complex) would bring additional economic benefits to the area by consolidating Navy operations in modern facilities on a smaller footprint, allowing the rest of NBPL OTC to be developed for other productive uses,” the document states.
Owned by the Navy since the mid-1990s, Naval Base Point Loma, an Old Town complex, consists of two large parcels straddling the Pacific Highway in the Midway District. The base houses the divisions of Naval Information Warfare Systems Command and Naval Information Warfare Center Pacific. The groups – a mix of 5,000 full-time and contract cybersecurity professionals – are spread over 1.68 million square feet of space and work in World War II-era hangars that have been deemed obsolete by the government.
Cyberwarfare Command reportedly contributes $3.5 billion a year to San Diego’s economy.
The federal land is part of the Midway Pacific-Highway Community Plan area, but is not subject to local zoning laws or building height restrictions. The solicitation encourages proponents to submit plans that are compatible with the surrounding areas.
However, the site could accommodate thousands of homes, provide ample space for large businesses and community stores, and create space for hotels in towers extending up to 350ft, according to an environmental scan. preliminary which is currently on hiatus. The draft plan, released in May 2021, considered up to 19.6 million square feet of development spread across 109 buildings. Environmental work was shelved until the Navy chose a winning bidder.
Along with the solicitation, the federal agency’s priority is replacement facilities, which must be valued at, at a minimum, the fair market value of the leasehold interest, the document said.
Proposer teams also have some flexibility in how they meet facility requirements, although the Navy has said it wants 887,568 square feet of space and 3,208 parking spaces at the NAVWAR site, and 541,068 additional square feet of outdoor warehouse, lab and drop-off space. site locations.
The potential public-private partnership, which the Navy has called the largest in its history in terms of anticipated monetary value, draws inspiration from the agency’s 2006 deal with Manchester Financial Group for the 12-acre Navy Broadway complex. . The deal ultimately resulted in a 17-story waterfront office building for Navy Region Southwest, Naval Installations Engineering Command Southwest and Reserve Component Command. of the Southwest Navy Region. The rest of the property, apart from a Manchester-booked hotel block, is currently being developed by life sciences property developer IQHQ.
Earlier this month, San Diego Mayor Todd Gloria submitted a letter to the Navy, expressing the city’s “enthusiastic support” for the NAVWAR revitalization effort.
“This project is a unique opportunity to provide state-of-the-art facilities to support NAVWAR’s continued mission readiness for the Navy, as well as assist the San Diego region in advancing our goals of expanding service capabilities. housing, promoting economic development and increasing employment near public transportation,” Gloria wrote in the letter.
The Navy will host a pre-proposal conference and site visit on Dec. 7.