August 6, 2026
Kursat Misirlioglu, Founder and CEO of MirKa Investments, was selected to join a panel of industry leaders at the San Diego Multifamily & Affordable Housing Summit to discuss the realities of building and leasing affordable multifamily housing in San Diego.
Smaller Units Face Heightened Competition
While MirKa focuses primarily on income averaging projects, with an emphasis on larger family units, Misirlioglu pointed to a pattern MirKa has seen across its income averaging communities: the smaller the unit, the more likely it competes directly with market-rate housing.
“Even though we are focusing mainly on large family projects, twos and threes, as the units get smaller in income averaging, depending on the microclimate within the county, sometimes you’re competing against market-rate units,” Misirlioglu said. He noted that this makes early marketing essential. “You need to start your marketing process five to six months before construction completion.”
Parking adds another layer of difficulty. Affordable housing developers operate under cost constraints that limit how much parking they can build, and California generally encourages less of it. But that runs counter to what renters expect. “When it comes down to marketability and absorption rate, you’re really competing against a fundamental convenience that we may not be able to offer all the time,” he said.
He also pointed to AMI level selection as a major factor in how a project performs, since the rent levels chosen for a given unit type directly affect the spread between affordable and market rents.
City of San Diego Keeps Developers on Track
Misirlioglu credited the City of San Diego’s permitting team, including Keely Halsey, Assistant Director of Development Services, for helping MirKa navigate several projects. “It’s been a tremendous experience, incredible support by the city,” he said. “The team is sophisticated enough to understand the financing deadlines.”
He pointed to kickoff meetings with trade partners as a model for the kind of communication that keeps projects on track. “Very direct, professional, no emotions. Effective communication has been very helpful for us.”
Financing Timelines and Multi-Agency Entitlement Work
Misirlioglu was candid about where the process gets harder. Financing awards typically come with a 180-day window, he said, but projects sometimes need extensions that stretch that timeline out to nine or ten months. In the meantime, costs and financing conditions keep moving, which means developers have to budget for that uncertainty from the start.
Entitlement work brings its own complications, particularly when multiple agencies are involved. Misirlioglu described one project where the state Department of Toxic Substances Control (DTSC) interpreted code requirements differently than the project’s financing team, even as the city itself remained a helpful partner throughout. “You need to immediately, on a proactive basis, understand the common denominator that can meet everyone’s expectations and requirements, and manage that multi-dimensional component of different agencies together with your building permitting agency.”
He added that having an adaptable architect on the team, who is willing to work with the engineer and general contractor early in the process to discuss the mission component and the market component. And everyone evaluates new technology and funding sources alongside nonprofit community partners. This has been essential for MirKa while working through many challenges.
Bottom Line: Build More, Fund More
Misirlioglu closed with a direct read on the state of affordable housing in the county. “We need to keep doing what we’re doing at a minimum. And it’s a supply and demand issue. We need to build more housing, and we need to create more gap funding sources.”
About MirKa Investments, LLC
MirKa Investments, LLC is a proven leader in developing and managing affordable multifamily housing communities throughout California. With 16 successfully closed projects and 21 more in various stages of development, MirKa continues to demonstrate unparalleled expertise in creating sustainable housing solutions. MirKa’s track record of success reflects its unwavering commitment to creating inclusive communities where residents can truly thrive.