Larry Clemens, president of Lennar San Diego Urban Development Group, will move his staff to new quarters in the Merrill Lynch building in July. (photo/lambertphoto.com)

Why stay in Carlsbad when many of your big projects are in Downtown San Diego? Larry Clemens, president of Lennar San Diego Urban Development Group, must have asked himself the question hundreds of times as he tooled the freeway from his company’s North County offices to come Downtown.

Later this month, the question will be answered. That’s when tenant improvements should be finished and ready for Clemens and a staff of 20 to move into new division headquarters on the 14th floor of the Merrill Lynch building at 701 B St. (Suite 1400). The new offices will contain 14,000 square feet or about three-quarters of the entire floor. That’s more than what the division had in Carlsbad and will accommodate future growth.

“We have an awful lot of property we’re involved with Downtown, including the largest master-planned development being undertaken here,” says Clemens, 59. “One of the reasons we selected this site is because it looks down directly at the site where we will be constructing that development (with JMI Partnership). And, frankly, we were getting tired of driving up and down the coast.”

The property Clemens is talking about is across from Petco Park at Harbor Drive and Park Boulevard, a 7.5-acre parcel where a mixed-use project of residential, office, retail and possibly a hotel is planned. The project has been approved by the Centre City Development Corp. and is scheduled to go before the San Diego City Council this summer.

Lennar San Diego Urban Development Group is the result of a company reorganization six months ago. It is a division of one of the largest home builders in the country.

The San Diego division is expanding. Clemens says it is seeking new urban master plan opportunities throughout San Diego. “Downtown’s population of 27,500 is expected to reach 85,000 by 2030,” he says. “Our team will be working to help meet this growing demand for future homes in revitalized urban neighborhoods.”

Donna Alm, vice president of CCDC, says Lennar’s move will benefit what is becoming a vibrant urban center for both business and growing residential neighborhoods.

Lennar has worked in partnership with Intergulf to develop La Vita, a 304-unit condominium development in Little Italy, and Alicante, a 95-home mid-rise community located in Bankers Hill. Lennar also is working with Intergulf on a new community to be called Breeza in the North Embarcadero district of Downtown that will include 161 residences, retail and office uses. The company also has initiated a partnership with CLB Partners (developers of Park Laurel) for a 191-unit high-rise next to St. Paul’s Cathedral in Bankers Hill.

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Offices, restaurant and retail spaces are planned at the TR Produce warehouse building in East Village.

Cruzan/Monroe is redeveloping the historic TR Produce warehouse building, formerly known as the Wellman-Peck Building, on the 20,000-square-foot East Village site bounded by J Street and Island, Eighth and Ninth avenues. When completed in the second quarter of 2006, the site will feature upper-level office suites above a 20,000-square-foot restaurant and retail space. The company will add a two-story, steel-framed structure above the warehouse to provide 27,000 square feet of loft-style offices. The entire project will stand 65 feet tall and encompass four stories.

“This building is a Downtown San Diego landmark and its location adjacent to the ballpark and in the heart of East Village makes it ideally suited for urban-style office lofts,” says Al deBerardinis of Cruzan/Monroe.

The TR Produce warehouse was designed by Julius Kraft and Sons and built in 1933. The exposed brick exterior reflects the building’s structural bays and interior warehouse functions, and is accented with brick pilasters and irregularly placed ornamental colored tile. Cruzan/Monroe purchased the building in 2003. Richard Bundy and David Thompson are the architects on the project. The general contractor is Wheelihan Construction. Leasing for the retail and restaurant spaces is being handled by Bill Shrader and Corinna Gattasso of Burnham Real Estate * Oncor International. Bradford Perry and Barry Mahlberg, also of Burnham, are handling sales of the office suites.

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Ascent Real Estate Inc. has signed a 10-year lease at $1.8 million for 5,780 square feet of retail space in Laurel Bay, 2400 Fifth Ave., and will move in August. Corinna Gattasso and Bill Shrader of Burnham Real Estate * Oncor International represented Ascent and the lessor, Hammer Laurel Condominium LLC.

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McGraw Baldwin Architects Inc. signed a 60-month, $1 million lease with Arden Realty Inc. for 7,900 square feet of office space at 701 B St., Suite 200. Bradford Perry and Brent Jacobs of Burnham Real Estate * Oncor International represented the lessee. Arden Realty represented itself.

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Rendering of Centex Homes’ 39-story, 200-unit condominium project.

Centex Homes has purchased a 33,000-square-foot parcel at 1460 Island Ave. for $6 million and plans to build a 39-story, 200-unit condominium project with 6,000 square feet of ground floor retail space. The seller was 15th and Island LLC. The deal was brokered by Victor Krebs of Colliers International. KMA Architecture is project architect.

Element, an eight-story, 65-unit condominium project is under construction at Market and 15th streets on land that Centex Homes purchased in 2003 for $1.5 million.

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The Gaslamp Quarter has a new entertainment venue — Jolt’n Joe’s at Fourth Avenue and J Street. It offers dining, sports viewing on large monitors, tournament billiards, arcade games and a fine arts gallery in a 15,600-square-foot space. Philip Paccione, a first v.p. with Merrill Lynch, owns Jolt’n Joe’s. Steve Zipfel, former g.m. of Dick’s Last Resort, is COO. Manolo Tourne is executive chef.

Interactive games — darts, pinball machines, video games and Ping-Pong — are located in the second floor arcade, as is an art gallery with reproductions of the masters for sale and space for exhibitions of local artists. The business also is available for private and corporate parties. For information, call (619) 230-1968.

The Downtown Relocations column features news on firms that are abandoning, moving into or expanding in the 92101 ZIP code. Send submissions to Manny Cruz, manny@sandiegometro.com.