Pernicano's Hillcrest property goes to San Francisco group

Pernicano’s in Hillcrest was a popular eatery for years, especially for sports celebs. Colorful owner George Pernicano owned three percent of the San Diego Chargers (seven percent originally). His restaurant closed in 1985, and has been vacant ever since.

Jump to 2019, when Carmel Partners Inc., a developer headquartered in San Francisco, paid $8.5 million. The asking price had been $12 million, but earlier pending sales fell through.

Besides the Pernicano’s building (3840 Sixth Ave.) with its approximately 25,000-square-feet of space, the property includes two parking lots on Sixth Ave. (3818-24 and 3828-30). In addition, an attached building at 3833 Fifth Ave. housed his other restaurant, Casa di Baffi.

Real estate broker Jeanine Savory of The Savory Group sold the property. Savory said the property zoning is “currently CC 3-9, which is one unit per 400 square feet prior to any density bonuses for affordable housing.”

The San Diego inclusionary housing ordinance (effective July 2020) requires new residential and mixed-use developments to include 10 percent of the rental units as affordable housing. That pertains to individuals with income up to 60 percent of area median income. An alternative choice for a developer is a hefty fee, currently $17.60 per square foot of the property.

Savory had former plans for the project, named Hillcrest Gateway. But she said it looks unlikely that Carmel “plans to utilize the previous concept.” As for the naming, Savory hopes it will “somehow be incorporated. I am excited to see them break ground.”

Tom Mullaney, chair of Uptown Planners, is not so pleased. Mullaney told me, "Has the city of San Diego changed the zoning code so much that projects can be reviewed and approved with no public input?" He added, "As chair of Uptown Planners, I have not received any notice of a development project at the former Pernicano's site."

Per its website, Uptown Planners "is the only legally recognized community planning group (advisory board) to the City of San Diego regarding land use, development, and discretionary projects in Uptown," including Hillcrest.

Benjamin Nichols, executive director of Hillcrest Business Assn., welcomes the new project. Nichols said. “I think Pernicano’s was always a psychological barrier for developers that Hillcrest was off-limits. But with the demo of this building underway, the dam is breaking.”

Nichols says he’s “been in contact with Carmel for about a year, and they've been very communicative.” He proclaimed that with “new construction underway” on Hillcrest streets, “Hillcrest is having a residential renaissance.”

Carmel developed “BLVD63,” a controversial 332-unit residence near SDSU. A Reader article reported on the legal actions, and a $150,000 fee paid by Carmel to the city. The company was asked for comments on their new project, but no response has been received.

Courtney Pittam, press secretary for Mayor Todd Gloria, said the mayor “has not been briefed about any future plans for the site.”

The two buildings were not considered historic. Bruce Coons, executive director of Save Our Heritage Organisation, offered this statement: “We are not opposing” this Hillcrest property teardown.

Gary Pernicano, son of George, offered his thoughts on the sale: “It’s an emotional transition having so many memories there.” He stated that “his parents opened it in August of 1946, when they introduced the West Coast to pizza.”