Bella Mar Apartments

Render by Carrier Johnson + Culture

Just northwest of Palm Avenue Trolley Station, Bella Mar is a 380 unit residential development under review in Palm City.

The site is located along the Otay River, which originally housed a homestead farm. A small portion of the property also housed a go-kart track that closed in 2006. The site was planned for a RV park, but this never panned out, and the site eventually was sold in 2016 for $2 Million to The Phair Companies.

Site Photo from Ethan Paul (BuildSD)

Developer The Phair Companies opened for business in 2017, and the permit application for Bella Mar was deemed complete by the City of San Diego in 2019. The Otay Mesa-Nestor Community Planning Group consequently approved the project unanimously. However, it took a further 6 years to complete CEQA studies before Bella Mar was finally permitted in mid 2025 by the City of San Diego. This exceptional length of time is due to the project’s location: Bella Mar is within the Otay River floodplain, and part of the lot is functionally a riverbed, so there are many understandable concerns about the development. There were studies into drainage, flooding, biological studies, and studies in endangered species that reside in the area as it is partially within the City of San Diego’s Multi-Habitat Planning Area. It is also on California Coastal Commission land, meaning all decisions must be reviewed by said commission.

A snag was hit when despite the development application being approved in 2025, in 2026 The Phair Companies filed for chapter 7 bankruptcy. This has likely stalled the development, and has made it unclear who currently owns the Bella Mar Apartments LLC, the project's overall holding company. As Red Tail Acquisitions was the secondary party and investor in the development, BuildSD believes they are likely the current party in charge. There are currently unpaid invoices to the City of San Diego Development Services Department, but given how long permitting took, this is likely to be rectified by the responsible party.

Image by City of San Diego

To allow for the development, a rezoning was required. Like nearby Palm & Hollister, the site was zoned for primarily agricultural uses. The requested rezoning was to RM-2-5 to allow for 29 dwelling units per acre. A number of variances were also requested, the main ones being a change in the height limit from 40 feet to 55 feet. There were also variances for setbacks, driveway widths, locations of parking, and open space. All were granted.

*Site plan by Carrier Johnson + Culture

Bella Mar’s plan consists of fourteen three-story residential buildings, a large four-story building, and a large leasing and clubhouse building. The three-story buildings are arranged in an L shape around the 4 story building, which is in the southeast corner of the property. The leasing/clubhouse building, pool, and spa are centrally located, and there is a large multi-use field on the west side of the property, surrounded by units.

The fourteen three-story buildings are solely market-rate units, with many having identical or similar floor plans to each other. The 280 total units within the three-story buildings consist of 85 one-bedroom units, 129 two-bedroom units, and 66 three-bedroom units.

Render by Carrier Johnson + Culture

The affordable units are all in the four-story main building. While Bella Mar was only required to build 38 affordable units to meet a 10% inclusionary zoning requirement, Bella Mar is building an additional 62 affordable units at multiple income levels, measured in Area Median Income (AMI) percentages: 28 units at 80% AMI, 60 units at 60% AMI, 11 units at 30% AMI. There is also one manager's unit. The four-story building features a unit mix of 48 one-bedroom units, 26 two-bedrooms, and 26 three-bedrooms.

Elevation by Carrier Johnson + Culture

Amenities include not just the pool, spa, and club room, but various green and open spaces throughout the property. There is a large multi-use field, multiple paseos with greenery between the buildings, and a public path along the river front. Many of these green spaces act like the backyards of the residences, giving residents green space that they can share with their neighbors. Due to its location, the site leaves some space for the river to remain, but to prevent flooding it is elevated much higher than existing. This means like Palm & Hollister, this new public walkway will be elevated with great views of the Otay River and more. Another flooding prevention measure is a new large bioswale along Interstate 5. This doubles as a significant buffer between the development and the noise of the freeway.

Section by Carrier Johnson + Culture

Bella Mar Apartments was responsible for paying to widen the existing road right of way, but not for cars—instead for cyclists, pedestrians, and green space. This is because currently Hollister Street is a narrow road with dirt shoulders and no sidewalks. This was encouraged by the Otay Mesa-Nestor community plan, that Hollister Street in the area near Palm Ave Trolley Station have a “pedestrian orientation, and streetscape recommendations are incorporated into the design for future improvements to Hollister Street”. Also in the design are plans for new crosswalks and a bus stop on either side of the street for MTS route 932.

While the future of Bella Mar may still be up in the air, it coming to fruition would be one of a number of major new developments in the local area. It would contribute to Palm City in meaningful ways, and would help in the creation of a new, dense, walkable neighborhood in South Bay San Diego.