San Diego port officials are reviewing a developer’s plans for a major mixed-used project near the newly opened Gaylord mega resort that include a tennis training facility, a water polo academy, an IMAX theater and a 50,000-seat sports and entertainment stadium.
It’s among other big developments seeking to capitalize on expected new business traffic in one of California’s largest coastal areas still available for commercial development.
The Port of San Diego, the overseer of projects on the region’s waterfront through land leases, is reviewing plans submitted by Virginia Beach, Virginia-based developer Divaris Group of Cos. for a 124-acre project called Pangaea, proposed for the city of Chula Vista, about 10 miles south of downtown San Diego.
The Board of Port Commissioners voted unanimously in mid-July to authorize a six-month exclusive negotiating agreement with a development team that includes Divaris Group, its subsidiary McGarey Group, design firm Tucker Sadler Architects and finance consulting firm Providence Resources Group, which is focused on public-private projects.
The port executive board said the six-month period will give the developer and port staff time to finalize development terms, and also grants the developer time to reach a partnership arrangement with an unnamed tennis star who the developer told officials is essential to the proposed project’s completion. Port officials said final approvals would likely take an additional six months of review before construction could begin.
Chula Vista officials this week said the city will be gathering public feedback on the project, starting with the Aug. 12 city council meeting.
According to public filings, the multiphase project also calls for a public recreational trail, four hotels and three ocean-oriented office buildings. Developers are also in talks to include the IMAX theater to be operated by Paragon Entertainment and an upscale miniature golf venue called PopStroke, co-owned by Tiger Woods. The sports and entertainment venue is likely to come in the second phase.
Divaris Group CEO Gerald Divaris said Pangaea at full buildout is expected to involve between $2.2 billion and $2.5 billion in development investment, not counting the proposed stadium, which is still in early planning stages.
Chula Vista in May saw the opening of the 1,600-room, $1.3 billion Gaylord Pacific Resort & Convention Center, marking the nation’s largest hotel opening so far in 2025 and one of the largest of the past five years. Even before its debut, operator Marriott International said the property broke company records for hotel room nights booked in advance — more than 1 million — for meetings scheduled there over the next decade.
City and regional government officials have estimated that the Gaylord resort alone will generate $475 million in annual new economic impact for a 550-acre area of Chula Vista once dominated by an aging electric generating plant and other industrial buildings that were relocated or demolished.
Regional officials and developers expect tourists, convention-goers and employees at the Gaylord to generate significant ripple demand in coming years for real estate, including housing, retail, offices and additional hotels. The Pangaea project is planned for a port-controlled site at 990 Bay Blvd. that formerly housed industrial buildings, about 1.5 miles south of the Gaylord.
“The Gaylord complex will complement what Pangaea will offer, and together they will attract far more visitors on a year-round basis,” CEO Divaris told CoStar News in an email. “The business facilities that are focused on water- and harbor-related industries will also drive demand for conference, research and meeting space — supporting the need for large venues to host national and international gatherings focused on these sectors.”
Sports development focus
The San Diego region’s second-largest city, Chula Vista has long been home to an Olympics training center, and the Divaris Group project has a distinct sports-oriented focus as the region looks to boost its waterfront recreational attractions tied to the new Gaylord resort.
“What sets Pangaea apart is its unique and pivotal focus on sports and entertainment, with initial phases emphasizing racquet sports, specifically tennis, and water polo,” Divaris said. “These two sports are growing in popularity, and Pangaea’s climate and location make it an ideal hub for both.”
The developer is counting on attracting world-class athletes from each sport to enhance the project’s national and international appeal. “The potential inclusion of a 50,000-plus-seat stadium in Phase 2 adds another layer of momentum to this sports-driven development,” Divaris said.
To complement the athletic focus, he said Pangaea’s plans also include four hotels, 300,000 square feet of specialty and “uniquely sourced” retailers, and a mix of traditional and sports-themed entertainment. The developer is also looking to include office space for water- and harbor-related businesses and educational venues, with tenants being scouted.
Several projects by other developers were already in the works near the Chula Vista waterfront before the opening of the Gaylord resort, and others are likely on the way.
Across the street from the Gaylord, developer Pacifica Cos. is building a $1 billion, 35-acre project called Amara Bay. It is slated to include 1,500 residential condos, 400,000 square feet of office space and ground-floor retail.
About a mile from Amara Bay and the Gaylord, developer MountainWest is planning a $900 million project called Bayview Point that is expected to include a 400-room Marriott hotel and 200 affordable residential units, including apartments and condos.
“I think that the Gaylord resort is and will be a catalyst for further development along the South Bay in the coming years,” said Joshua Ohl, senior director of analytics for CoStar in San Diego.
“Housing, hospitality and commercial space will likely be added to complement the resort, and it will test the ability of South County to draw consumers, businesses, tourists and new households to the area that has been underserved by those same cohorts,” Ohl said.