It''s a new experience, driving up to Jeffrey Dee''s Sand City home, which is just up the block from the police station. In an area that''s for years been primarily defined by industrial warehouses and big-box chain stores, a housing revolution of sorts has been steadily spreading.

Artist''s studios, full of sculpture and paintings, are mixed in between construction and welding firms.

"I wasn''t even aware of all the artists here," says Realtor Becky Jones. "They had an opening of all the studios and it was wonderful to go inside these hidden buildings and see all this amazing work."

And sprouting rapidly are a few blocks of cute new homes, most built in a beachy style with second stories to maximize Bay views--albeit views that look across Highway One.

On one side of Dee''s home is his sister''s house, on the other, a warehouse. There''s something uniquely comfortable about the pairing of home and industry that creates an alternative to suburbia.

"They love the convenience," says Jones. "Everything is right here."

It''s true--down the hill is Costco, Albertson''s and Target-a trio of stores that could supply most homes'' needs indefinitely--plus a pet store, beauty supply store, and numerous restaurants and shops. A few blocks away is Sanctuary Rock Gym, the Skate Station, and easy access to Highway One and Highway 68.

The two-year old house reflects the tones of the nearby sand dunes, with light painted walls, beige Berber carpeting, and neutral-hued marble and ceramic tiles designed by Dee, a contractor. The 2,000-square-foot space is bright and airy, with multiple skylights and tall windows.

Two fireplaces--one in the living room and one in the large eat-in kitchen--flip on with a switch. In the kitchen, a rough-hewn marble countertop provides an attractive bar counter and food prep surface. Oversized sandy-toned ceramic tiles cover the floor and create an easy-clean-up surface. A walk-in pantry provides storage for all the bulk shopping items, that can be brought into the kitchen by the attached two-car garage. A half bathroom sits between the living room and the kitchen.

Upstairs, a long open landing filled with windows provides access to a private master suite with its own balcony and Bay views. Two closets--one walk-in ("hers," says Jones) and a smaller one ("his") offer plenty of storage. The master bath has a separate tub and shower, both with subtle marble tiling, and twin sinks.

On the other end of the landing, two more rooms--either bedrooms or office space--and another bathroom offer more views.

Outside, Dee has been putting in more landscaping in the terraced back area. A large slate patio behind the living room leads to a wooden deck for sunbathing over the sloping backyard.

"If somebody has a view for the future, it''s such a valuable area," Jones says. "The land here is too valuable to be used just for warehousing."

Price: $665,000. 604 Scott St., Sand City. Contact: Becky Jones of Greg Shankle Real Estate at 372-5306