Sales Of Two Downtown San Diego Office Towers Demonstrate Strength Of Market

Courtesy of Kearney Real Estate Co.
Five Thirty B In Downtown San Diego Has Sold Again, This Time For $57.7M.

Neighboring office towers in downtown San Diego at 530 and 600 B St. have sold for a total of $167M, the San Diego Union-Tribune reports.

Bosa Development sold Five Thirty B to San Francisco-based Swift Real Estate Partners for $57.7M, according to CBRE broker Louay Alsadek, who represented the buyer. Bosa had purchased this 24-story, 232,936 SF office tower from Kearney Real Estate Co. in mid-2016, after Kearney invested $15M in capital improvements to modernize the building and add amenities. The building was 87.8% occupied at closing. Major tenants include Union Bank, the San Diego Regional Economic Development Corp. and the National Conflict Resolution Center.

Alsadek said Five Thirty B attracted buyer interest due to downtown’s significant decrease in vacancy and growing population.

The 600 B St. Building, which is home to the San Diego Union-Tribune, MiTek Systems and WeWork, sold to New York-based Rockwood Capital for $109.5M, according to Holliday Fenoglio Fowler, which represented the sellers, Lincoln Property and Angelo, Gordon & Co. This 24-story, 359,278 SF office tower sold in 2012 for $49M and in 1995 for $6M. The building was 89.7% leased at time of closing.

CoStar reported downtown’s overall vacancy rate, which dropped from 17.1% in 2012 to 11% today, is at 10-year low. Vacancy this low typically indicates more construction is needed, but no major office projects are under construction. Soon to break ground, Manchester Pacific Gateway, a $1.3B, 2.9M SF public-private, mixed-use development by Manchester Financial Group and the U.S. Navy, will provide 1M SF of Class-A office space, and Makers Quarter projects will add 971K SF of office space over the next five years.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's San Diego Newsletters
Related Stories

Fed Raises Benchmark Rate, Intensifying Borrowing Cost Blues

Google Delays Thompson Center Opening To 2028, Releases New Renderings

Stockdale Hires Fortress Exec To Launch Debt Business

Discussing Strategic Capital Stack Structuring At Bisnow's Sept. 30 National Finance Event

Why Top-Secret Facilities Are Permeating Greater D.C.'s Office Market

DivcoWest Sells Glendale Office Building For $70M

GTIS Partners Rebrands As Brightshore Capital, Launches $250M Debt Platform

Hines And Rialto Close Office Credit Fund At $1.1B

'Beyond A Routine Wobble': 10-Year Treasury Clears 5% Ahead Of Key Fed Meeting

Rig Collapse At Citadel HQ Site Sends 4 To Hospital

Northern Virginia Office Tower Sells For Double Its 2024 Price

Airbnb Launches $250M Fund To Invest In Affordable Housing