San Diego planners Thursday unanimously approved a seven-story apartment complex in the place of a historic building in the heart of North Park.
The development will rehab a two-story, nearly 100-year-old building and build a 92-unit apartment complex above it. Close to the North Park sign, the site is in a heavily trafficked site across the street from The Observatory concert venue.
The project was approved 6-0 with little fanfare: The San Diego Planning Commission voted without commenting on the plans and no members of the public spoke on it.
Developer Nate Cadieux, president of San Diego-based Purpose Real Estate, said after the vote he was thrilled the project sailed through approvals. It also went to the city’s Historical Resource Board in late February, where it received high marks for its preservation of the lower levels.
“I think the big win for the city, and the community, is it is an example of how to build density,” he said, “while also respecting these character-defining buildings in our neighborhoods.”
The building, at 2906 University Ave., is designated as a historic structure in San Diego because it is considered an example of the Spanish colonial revival architecture style and early commercial development around streetcar lines.
It was built as the Mudd Company department store in 1929 and carried shoes, clothing, dry goods and furnishings. The store went belly up in a few short years as the Great Depression hit. It was followed by general merchandise shops, a stream of appliance stores going on for decades and dozens of other short-lived establishments.
More recently the building was home to Tamarindo and Swami’s restaurants and Claire de Lune coffee shop. The original white stucco was repainted turquoise and pink. Today, it is vacant and covered in graffiti, stickers and various things written into dust on windows.
Purpose Real Estate intends to restore the two-story structure to its original white and, in general, make it look like it did in the 1930s (just with an apartment building above it).
A developer has proposed a seven-story apartment complex in this prime North Park spot. (Kristian Carreon / The San Diego Union-Tribune)
Tattoo artists Ramon Silva, left, and Dave Luck speak about surrounding businesses outside North Park Tattoo in early March. (Kristian Carreon / The San Diego Union-Tribune)
The facade of the former location of Tamarindo Latin Kitchen & Bar in North Park. (Kristian Carreon / The San Diego Union-Tribune)
The facade of a historic building that was home to businesses like Tamarindo Latin Kitchen. A developer has proposed a seven-story apartment complex in the spot. (Kristian Carreon / The San Diego Union-Tribune)
A developer has proposed a seven-story apartment complex in this prime North Park spot. (Kristian Carreon / The San Diego Union-Tribune)
Show Caption
1 of 5
A developer has proposed a seven-story apartment complex in this prime North Park spot. (Kristian Carreon / The San Diego Union-Tribune)
Cadieux said the process to get to this point took three years. He said city planners signaled the building was likely historic and could face an uphill climb to approval. Purpose Real Estate then began the process of getting the crumbling building approved as historic, negotiating with preservationists and doing lengthy environmental reviews.
Cadieux said construction will likely not happen for another 18 to 24 months because of additional planning and permits. While he expressed gratitude for city planners and officials, he said he would support a more speedy process for similar projects. Cadieux said a roughly five-year process would be a no-go for most developers looking to build apartments.
The new project will include 16 subsidized apartments mixed in with the 76 market-rate units. It also calls for one level of underground parking with 23 spots, and roughly 4,900 square feet of commercial space on the ground level. Cadieux said he has already received inquiries about renting the retail space.
Purpose Real Estate has experience with similar projects. In February 2025, it opened the 11-unit Waldorf apartment building in North Park. The building, at 3140 University Ave., was constructed in the 1920s and had been home to a candy store, several gyms and, most notably, the Waldorf House of Televisions in the 1940s, which is believed to be the first television store in San Diego.
Purpose Real Estate spent roughly $8 million to buy and rehab the property. Efforts were made to preserve its history and old San Diego Union advertisements, found in the attic, are framed in the hallways.
A developer will turn 2906 University Ave. into an apartment complex. When it opened in 1929 it was a Mudd Company department store and featured in the pages of The Evening Tribune. (U-T Archive)
A rendering of a seven-story, 92-unit apartment complex proposed for a busy section of University Avenue near the North Park sign. (City of San Diego)
A rendering of a seven-story, 92-unit apartment complex proposed for a busy section of University Avenue near the North Park sign. (City of San Diego)
A rendering of a seven-story, 92-unit apartment complex proposed for a busy section of University Avenue near the North Park sign. (City of San Diego)
Show Caption
1 of 4
A developer will turn 2906 University Ave. into an apartment complex. When it opened in 1929 it was a Mudd Company department store and featured in the pages of The Evening Tribune. (U-T Archive)
The project approved Thursday will clearly be a bigger undertaking. The west and south facades would be restored, while the rest is a modern building designed by Carrier Johnson + Culture. The rest of the existing building will be demolished.
When The San Diego Union-Tribune visited the site last week, no passersby or nearby businesses opposed the plan. Across the street at North Park Tattoo, workers said they thought the remodel sounded like a good idea.
“I think it will be great for us,” tattoo artist Ramon Silva said. “More business.”