Once The Batmen Are Gone
Want to get a jump-start on upcoming deals? Meet the major San Diego players at one of our upcoming events!
|There's a lot more happening in San Diego right now than Comic-Con. (Though would it kill a broker to dress up as his or her favoriteTwilightcharacter?) Downtown is seeing a resurgence of interest, reflected in office sales as well as tenant activity.|
|Last week, we chatted with JLL EVP Richard Gonor, who recently took over leasing at the 450 B Tower (you don't have to be Professor Xavier from X-Men to figure out the address) with fellow EVP Bess Wakeman. San Diego-based investor BCL Inc acquired the building late last year and plans an interior renovation and upgrade. Richard notes BCL also has moved on site, so ?now you've got local ownership who's also managing the day-to-day operations.? The acquisition of 450 B Tower marks the firm's re-entry into Downtown after selling 110 Plaza in 2005. (We still set the table for them every day, so it's nice they're home.)|
|Richard tells us the transformation will ?raise the overall tenant experience at the property, on all levels.? Look for a variety of spaces, some with exposed ceilings, hard ducting, and collaborative areas. Current occupants include financial services companies, law firms, and a few government agencies, but creative and tech companies have started to take notice of Downtown. Over the past 18 months, a number of such firms have relocated from surrounding markets like Sorrento Mesa and Mission Valley, drawn by Downtown?s 24/7 environment. ?We're not trying to change the building to be 100% creative, but we are looking to cater to this growing trend.?|
|The tower is 85% leased (compared to an 18% direct vacancy in Downtown—16% for Class-A), with Bank of America as the anchor. Richard says Downtown?s Class-A market has now posted two straight quarters of positive absorption, but rents haven?t yet increased to where building prices are being bid up to a premium. ?From an investment standpoint, there's opportunity there to get in at the bottom.? The Del Mar resident spends most of his off hours with his wife and two daughters, 3 and 6, including ?a fair amount of time down at the beach.?|